Dollar General Franchise FDD, Profits & Costs (2025)
Dollar General is an American chain of discount stores that was founded in Scottsville, Kentucky, in 1939 as a family-owned business called J.L. Turner and Son. It later changed its name to Dollar General Corporation in 1955.
The company is headquartered in Goodlettsville, Tennessee, and has grown to operate over 19,643 stores across the contiguous United States and Mexico as of January 2024. Dollar General focuses on providing convenience, quality brands, and low prices.
Their stores are designed to simplify shopping by offering a range of household essentials, including paper goods, cleaning products, food, over-the-counter medicines, health and beauty items, and seasonal merchandise.
The brand also carries well-known American products like Clorox, Energizer, Procter & Gamble, Coca-Cola, and Unilever, alongside high-quality private-label brands like Clover Valley®, Good & Smart®, and True living®.
While Dollar General has expanded significantly over the years and has become one of the most profitable retailers in rural areas of the U.S., it does not currently franchise its stores.
The company has established itself as a dominant player in the discount retail market by targeting small neighborhood locations and creating a shopping experience that is focused on convenience and affordability.
Initial Investment
How much does it cost to start a Dollar General franchise? Dollar General does not offer franchise opportunities, as all of its locations are company-owned.
Therefore, it is not possible to start a Dollar General franchise, and there is no associated cost for franchising with the company.
For similar retail franchises, however, the initial investment is on average $425,000.
In comparison, for example, Circle K (a convenience store franchise brand) requires an investment upfront of $279,000 up to $5,367,000 for their largest store format.
Average Revenue (AUV)
How much revenue can you make with a Dollar General franchise? Since Dollar General does not franchise its stores and all locations are company-owned, Dollar General does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.
However, a similar convenience store franchise makes on average $874,000 in revenue (AUV) per year. For example, a Circle K franchised store makes on average $1,309,000 in revenue per year.
Frequently Asked Questions
How many Dollar General locations are there?
As of the latest data, Dollar General operates approximately 19,643 company-owned locations across the contiguous United States and Mexico.
What is the total investment required to open a Dollar General franchise?
Dollar General does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Dollar General franchise.
However, the total investment required to open a franchised store similar to the Dollar General franchise ranges from $66,000 to $4,857,000.
What are the ongoing fees for a Dollar General franchise?
Since Dollar General 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 retail franchises in the industry charge an average of 3%-5% in royalty fees and 2%-4% in advertising fees ( e.g. Crown Trophy).
What are the financial requirements to become a Dollar General franchisee?
All Dollar General 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 Dollar General.
For retail store franchises similar to Dollar General, financial requirements can vary significantly. These may include:
- Net Worth: Around $500,000 to $1 million.
- Liquid Capital: Approximately $150,000 to $500,000.
These averages vary depending on the specific franchise model and location costs. High-traffic retail franchises may require higher net worth and liquid capital compared to lower-cost, neighborhood-focused stores.
How much can a Dollar General franchise owner expect to earn?
Since Dollar General is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Dollar General franchise.
Now, assuming the average gross sales for a retail franchise similar to a Dollar General franchise of $874,000 per store. And assuming a 15% operating profit margin, $874,000 yearly revenue would result in about $131,000 operating profit per year.
Who owns Dollar General?
Dollar General is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol DG. As a public company, it is owned by shareholders, which include individual investors, institutional investors, and mutual funds.
Disclaimer
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