How Much Does It Cost to Open a Walmart Franchise?
How much does it cost to open a Walmart franchise?
Short answer: Zero - that's because all Walmart stores are company-owned and they do not offer franchising opportunities.
That's right, you can't open a Walmart franchise, BUT...
...there is a great franchise opportunity waiting for you by leasing out space in Walmart stores!
Walmart is one of the leading retail chains with stores around the world. Many restaurant, salon, and other popular types of franchises have experienced great success by being located inside Walmart stores.
The cost of opening a franchise inside of a Walmart varies and would depend on the type of franchise you want to run and the scale of operations.
Most franchises cost from $50,000 to $200,000, while some can cost up to $5 million. You can learn more about the cost for some of the popular franchises by checking out How Much Does a Franchise Cost? or for some general ballpark costs keep reading.
Service-Oriented Franchise Opportunities
Service-oriented franchises can do very well being located on Walmart property as they can take advantage of Walmart's massive loyal customer base.
Take, for example, starting a business like FastSigns, which offers multiple business services, including signs and communication services. Many office workers and business owners shop at Walmart and they may like the convenience of having such services being offered at a place they already frequent.
The cost for starting that kind of franchise inside a Walmart store includes:
- An investment of about $233,555
- A liquid cash amount of about $30,000 as a requirement
- Sub-nominal initial Walmart royalty fee of about $800 monthly
You can expect the total cost to be around $300,000. This is typical for most service-oriented franchises that operate inside Walmart stores.
Restaurant Franchise Opportunities
Fast food restaurants are a popular franchise opportunity, particularly inside Walmart stores. Major fast food chains like McDonalds and Subway receive a lot of business from customers that shop at Walmart.
Generally, fast food restaurants could cost up to $2,300,000, with the most expensive being the McDonald's franchise. However, other fast food franchises cost less to start, most ranging between $40,000 and $1 million.
Other charges adding to this cost include:
- Advertising fees, which usually estimate between 4 and 5 percent of the gross sales.
- Continuing franchise fees are also a percentage of the annual gross sales.
While popular, McDonalds and Subway are not the only franchises you should consider. Other successful restaurant franchises include those that offer pizza, ice cream, coffee, or other popular foods and beverages.
Walmart's customer base will typically like the convenience of being able to grab a quick meal for their family or getting their kids a treat. Walmart employees also like to take breaks and grab lunch from restaurant franchises that are located in their stores, resulting in a steady stream of business for your franchise.
The cost for opening a restaurant franchise will vary depending on which franchise you choose. You can learn more about the costs associated with some popular franchises by clicking here.
How to Acquire Space Inside or In Front of Walmart
Once you've chosen the franchise you'd like to start, you will need to decide on a location. There are a lot of benefits to opening a franchise inside of or in front of a Walmart.
If you decide that's the right fit for you, here are the 3 steps you need to take to acquire the space you need:
- Review the tenant and landlord handbook to determine if your business will be able to comply with the operational requirements.
- Identify the location(s) with spaces that suit your business and negotiate the prices.
- Fill out a new tenant business summary form and send it to instoreleasing@walmart.com.
If you're new to opening a franchise, be sure to check out our guide on Choosing the Right Franchise and our step-by-step guide for How to Start a Franchise.
If you're trying to decide which franchise opportunity to pursue, check out our 10 Most Profitable Franchises and Top 25 Franchises to Own lists to get some ideas!