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Spice Franchise or Build Your Own Spice Store?


Have you been giving some serious thought to opening a spice store? You have two choices, but 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 (and those companies that are selling franchises will be the first to tell you so) – these companies help with site selection (at least some level of guidance), you typically own a territory, you're given a store build out plan (so you can look like all their other spice stores – think McDonalds), you'll receive an opening inventory list (the spice company gets a cut of this action too). This makes it easier to start a store if you have no idea where to start (and you’ll need to have access to some fairly hefty liquid cash on hand) but of course there is "the other side of the coin" you want to at least be aware of.

Start with the “franchise fee” this generally runs from $40k to over $100k (depending on the franchiser) and 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 all the store display stuff (shelves, cabinets, counters, store decorations), buy the POS (Point of Sale) system and then next you’ll need to buy the inventory. This doesn’t even take into account advertising for your new store. You’ll also have to pay a royalty fee for every ounce of spice sold – forever!

The other option is to instead choose to go the Independent Spice Store route and build it from the ground up. It’s not easy and you’ll have even more work to do. In no particular order - you’ll need to pick the name for your spice store (we’ve found something related to spices, easy to remember but don’t be too clever works best) and incorporate in your state (costs about $99 through Legal Zoom or use your attorney for about $300), have a logo designed, secure a building (leases are the most practical), build out the space, buy a POS system (Intuit/ Quickbooks works well for many small businesses), buy inventory and advertise.  But you’ll have an extra $50k 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. We provide our customers with the knowledge they need to sell our spices, whether through our informative website, personal emails or phone conversations.

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. Going the franchise route it’s the mothership’s (the franchisor) brand that you’re building.
Is it easy? Heck no! Can it be done? Yes.

So what's the bottom line on this? It really comes down to the individual. I recently sat down with a local downtown business manager who has done a masterful job of turning around a small downtown area that when she started had a 30%+ vacancy rate (they now have less than 5%). She told me that when she met with potential small business owners who wanted to move into this high traffic downtown area she could tell within the first 10 minutes if they understood how to be successful running a small business. That's exactly what I've found as well.

You either have the guts and the resourcefulness to become a successful small business entrepreneur or you don't. The franchise model can’t answer that question for you.  

What are the keys to spice store success?

Contact Sarah at 1-888-762-8642 or send her an email at sarah@spicesinc.com and let him answer any questions you might have.



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