Top Convenience Store Franchises and How They Compare

A franchise can be a great business investment, but it’s important to find the right fit. There are many different businesses that can make good franchises, if the business model and industry are something you can get behind. One popular type of franchise is the convenience store: a small shop offering a variety of products, often as a gas station. Let’s take a closer look at convenience store franchises and see if they’d be right for you.

The Upsides

A convenience store franchise offers its owner several perks. With a variety of products to offer, convenience stores have multiple revenue streams, including groceries, lottery tickets, and tobacco products. They also boast a strong industry performance; economic analyst company IBISWorld reports as of November 2023, the most recent report available, the convenience store market in the U.S. has a value of $44 billion. Convenience stores can also carry good brand recognition; the 7-Eleven franchise and the Circle K franchise have both become widely recognized names, for example. Lastly, with widespread interest in their goods, convenience stores are generally considered low-risk investments, with little difficulty generating customer interest.

The Downsides

Of course, no franchise, not even a convenience store franchise, is without challenges. For one thing, one of convenience stores’ biggest strengths is also a weakness. The popularity of both the business model and the products it offers has resulted in a largely saturated market; there’s hardly a town in the U.S. without at least one convenience store already established.

High staff turnover is a common issue in the retail sector, including convenience stores, which can lead to increased training costs and operational disruptions. Because you’re selling physical merchandise, as well as possibly operating a gas station, you’ll be very reliant on your supply chains. Finally, operating a convenience store remotely is very difficult, since timely management decisions may be required, and accepting delivery of certain regulated goods may require your authorization.

Side-by-Side Comparison

No matter what franchise you choose, in any industry, the startup costs will be a big determining factor in what you choose. Let’s look at several reputable convenience store brands and their costs, as listed on business news company Entrepreneur’s website:

7-Eleven Total Startup Costs: $139,150 - $1,384,000 Monthly Royalties: Varies
Circle K Total Startup Costs: $935,500 - $6,951,500 Monthly Royalties: 3.5%+
AMPM Total Startup Costs: $440,291 - $10,405,152 Monthly Royalties: 5.5%
Street Corner Total Startup Costs: $122,300 - $657,300 Monthly Royalties: 5%
Farm Stores Total Startup Costs: $145,400 - $943,200 Monthly Royalties: 6%

An Alternative Franchise

There are many types of franchises that can be profitable in the right hands, and different people with different interests may be better suited to a particular type of franchise. In the case of convenience stores, businesspeople with experience and/or an interest in sales of goods may find their niche. For those who are more interested in providing a service and promoting active lifestyles, an entertainment business like a trampoline park may be more appealing.

Trampoline parks are indoor entertainment franchises that provide customers with a safe, family-friendly environment to engage in physical play with trampolines and other attractions. The market for indoor activities is wide open; IBISWorld reports as of January 2024, there are only 378 trampoline parks in the U.S., and the market is forecast to grow through 2029, giving enterprising franchisees plenty of open markets to open their own locations. The trampoline park business model caters to a growing demand for family-friendly, health-oriented activities. They also offer multiple revenue streams, from memberships to event hosting to concessions, and more.

Jump on Your Franchising Opportunity with Altitude

We want eager, passionate franchisees like you to join our team. We want to help you find success operating an indoor playground franchise, and we’re prepared to provide you with the training, guidance, and support you need. Fill out a franchise form today to learn more about your franchising opportunity with Altitude.

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