Trader Joe’s Franchise FDD, Profits & Costs (2025)

Trader Joe’s, founded in 1967 by Joe Coulombe in Pasadena, California, has developed into a beloved grocery chain, offering a curated mix of products ranging from organic produce to international specialty items. 

Headquartered in Monrovia, California, the brand has become known for its affordable yet unique food selection, most of which are private-label items exclusive to the store. With an emphasis on simplicity, a small footprint, and excellent customer service, Trader Joe’s has built a distinctive identity in the grocery market.

The company began expanding beyond California in the 1980s, becoming a national brand with 597 locations in 43 states by 2024.

Unlike many of its competitors, Trader Joe’s does not franchise its operations, maintaining all stores as company-owned to ensure a consistent brand experience.

Its differentiation lies in its commitment to high-quality products, affordable prices, and a quirky, fun shopping environment, making it a standout in the grocery retail landscape.

Initial Investment

How much does it cost to start a Trader Joe’s franchise? Trader Joe’s does not offer franchise opportunities, as all of its locations are company-owned.

Therefore, it is not possible to start a Trader Joe’s franchise, and there is no associated cost for franchising with the company.

For similar grocery franchises in the industry, however, the initial investment is on average $621,000, ranging from $184,000 to $2,217,000.

Here are a few comparable franchises with their initial investment requirements:

Average Revenue (AUV)

How much revenue can you make with a Trader Joe’s franchise? Since Trader Joe’s does not franchise its stores and all locations are company-owned, Trader Joe’s does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.

However, looking at comparable franchises, a similar franchised grocery store in the food industry makes on average $541,000 in revenue (AUV) per year.

Below are 10 Trader Joe’s competitors and their average yearly revenue as a comparison:

Frequently Asked Questions

How many Trader Joe’s locations are there?

Trader Joe’s operates 597 company-owned locations in the United States as of the latest data, with no franchised stores.

What is the total investment required to open a Trader Joe’s franchise?

Trader Joe’s does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Trader Joe’s franchise.

However, the total investment required to open a franchised store similar to Trader Joe’s franchise ranges from $184,000 to $2,217,000.

What are the ongoing fees for a Trader Joe’s franchise?

Since Trader Joe’s does not offer franchises and all stores are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.

Yet, similar grocery franchises in the industry charge an average of 5%-6% in royalty fees and 2%-5% in advertising fees ( e.g. Edible Arrangements).

What are the financial requirements to become a Trader Joe’s franchisee?

All Trader Joe’s locations are company-owned, and the brand does not offer opportunities for independent ownership or franchising. Therefore, it is not possible to meet any financial requirements or apply to become a franchisee with Trader Joe’s.

For grocery store franchises similar to Trader Joe’s, financial requirements can vary significantly. These may include:

• Net Worth Requirement: Generally, grocery store franchises require a minimum net worth of $500,000 to $1 million.
• Liquid Cash Requirement: Franchisees typically need around $250,000 to $500,000 in liquid assets to qualify.

Prospective franchisees are encouraged to review the franchise disclosure documents (FDDs) for detailed financial criteria.

How much can a Trader Joe’s franchise owner expect to earn?

Since Trader Joe’s is entirely company-owned and does not operate as a franchise, there is no earning potential for a Trader Joe’s franchise owner.

The average gross sales for a grocery franchise similar to Trader Joe’s franchise is approximately $540,000 per store.

Assuming a 15% operating profit margin, $540,000 yearly revenue would result in $81,000 EBITDA annually.

Who owns Trader Joe’s?

Trader Joe’s does not operate as a franchise; therefore, there are no franchise owners. The grocery chain is privately owned by Aldi Nord, one of the two Aldi companies in Germany, after acquiring Trader Joe’s in 1979.

While Trader Joe’s operates independently from the Aldi Nord brand, all Trader Joe’s stores remain company-owned, and the brand maintains its unique identity and operational style.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.