As you start to explore opening an Appliance Franchise you will have a lot of questions. Through the Due Diligence Process you will receive a ton of good information and all of your questions will be answered. Below are some of the most Frequently Asked Questions about opening an Appliance Franchise.
How much does it cost to open an Appliance Franchise? Depending on the size of the location, inventory, buildout etc…you can expect to invest between $500k & $750k per location. You need to have about $200k cash of your own money & good credit to qualify for financing the remainder of the investment.
How much money can I make? We do not know how much money you can make. However, once you learn how our model operates you can talk to existing Franchise owners that already own an Appliance Franchise. They can share their numbers with you on how much money they are making in their Appliance Franchise.
The Franchise Documents have strong financials reported as well, so you can get a lot of information when you get to that stage in the Due Diligence Process.
How much space do I need to lease to open an Appliance Franchise? You will need around 20k square feet of space. The type of space is typically not expensive retail space though, think more like a warehouse model. Most Franchise owners will lease a location, you can purchase a location but that will take longer & will require a much larger capital investment.
How many employees do I need to hire? You will need to hire a store manager, 3-4 sales people & 2 delivery people. The manager & sales people are typically commission only, so they are paid for what is sold. The delivery people are paid by the hour.
Can I sell more than just appliances in my Franchise? Yes, you will have mattresses & furniture in your Franchise business. These are all complimentary items for your customers. The inventory cost for those items is included in the investment that is outlined above.
How long does it take to open an Appliance Franchise? Typically it takes about 4-6 weeks to complete the Due Diligence Process & get approved for an Appliance Franchise. Once approved you would pay for the Franchise and sign the contract.
Once the contract is signed the Real Estate Department will help you find locations and help you negotiate the lease. Typically it takes 6-12 months to open an Appliance Franchise from the time you sign the Franchise Agreement & pay for the Franchise.
Can I be competitive on pricing? Yes, because of the buying power of Headquarters you will get access to lower cost of goods and with the lower overhead model of operating a warehouse style model you can be competitive on pricing. To be candid, appliances are the lowest margin item that is sold. Mattresses & Furniture are typically significantly higher margin items, which is one of the reasons you will sell those too.
Appliances are a needed item. No one waits around to buy a refrigerator when theirs breaks down, they go to a store & buy one right away. Same with Washers, Dryers & Cook Stoves. In today’s world, customers NEED these items or they can’t live a NORMAL life…
Many customers that visit your warehouse store will also purchase mattresses & furniture, this increases your profitability.
How can I learn more about starting an Appliance Franchise? Email us: info@appliancefranchise.com