Spice Franchise or Build Your Own Spice Store?
Have you been seriously giving some thought to opening a spice store? You have two choices. Which one is better for you? You either go the route of finding a spice franchise or you go the DIY path and build your own Independent Spice Store.
The advantages of going with a franchise can be very appealing – help with site selection, you own a territory, being provided with a store build out plan (so you can look like all their other spice stores), be given an opening inventory list. This makes it easier but of course there are some downsides.
Start with the “franchise fee” that runs from $40k to over $100k depending on the franchiser (that’s just for the privilege of signing your name to the franchise agreement before you even get started). You’ll need another $100k to $150k to secure the building, do the build out, buy the POS (Point of Sale system) and then buy the inventory. This doesn’t even take into account advertising your new store. Oh and you’ll have to pay a royalty fee for every ounce of spice sold – forever!
The other option is to instead choose to start an Independent Spice Store and build it from the ground up. It’s not easy and you’ll have plenty of work to do. You’ll need to pick the name for your spice store (something related to spices, easy to remember but don’t be too clever) and incorporate in your state (cost about $99 through Legal Zoom or use your attorney for about $300). You’ll still need to secure a building (leases are the most practical), build it out, buy a POS system, buy inventory and advertise. You’ll also need to have a logo designed. But you’ll have an extra $40k to $150k to invest into your business. Oh and no ongoing royalty fee. If you go the independent route you'll need to know what to look for in a wholesale spice company.
By going the DIY route you’re building your own brand. Every time one of “your” customer’s pulls one of “your” spices, seasonings or gourmet salts out of their spice cabinet your brand is reinforced.
Is it easy? Heck no! Can it be done? Yes.
What are the keys to spice store success?
Contact us at 1-888-762-8642, call Greg directly on his cell phone at 570-394-9042 or send us an email at email@example.com and tell us what you need.