Dollar Tree Franchise FDD, Profits & Costs (2025)
Dollar Tree is a retail chain that focuses on providing a wide variety of products at a low price point. Founded nearly 70 years ago in Norfolk, Virginia, and Charlotte, North Carolina, Dollar Tree is now headquartered in Chesapeake, Virginia.
Operating as two iconic brands—Dollar Tree and Family Dollar—the company has over 16,000 stores across all 48 contiguous states and five Canadian provinces.
Dollar Tree emphasizes a “thrill-of-the-hunt” shopping experience with its constantly rotating product assortment, offering items like seasonal merchandise, party supplies, crafts, snacks, and household essentials, often at the price of just one dollar.
Dollar Tree stands out from its competitors by maintaining a focus on value and low prices, particularly through its Dollar Tree stores, which sell most items for one dollar. Family Dollar complements this by offering everyday low prices on a range of essential products.
Despite its large scale, Dollar Tree is not a franchise; all its stores are company-owned and operated. The company does not offer franchising opportunities in the U.S., maintaining its growth and operations internally.
Initial Investment
How much does it cost to start a Dollar Tree franchise? Dollar Tree does not offer franchise opportunities, as all of its locations are company-owned.
Therefore, it is not possible to start a Dollar Tree franchise, and there is no associated cost for franchising with the company.
For similar retail store franchises, however, the initial investment is on average $425,000. This does not include gas station and convenience store combined franchise models for which the price tag is logically much higher (about $6 million on average).
In comparison, for example, Circle K 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 Tree franchise? Since Dollar Tree does not franchise its stores and all locations are company-owned, Dollar Tree does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.
However, a similar retail 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 Tree locations are there?
As of the latest data, Dollar Tree operates over 16,000 stores across all 48 contiguous U.S. states and in five Canadian provinces. This includes both Dollar Tree and Family Dollar branded locations.
What is the total investment required to open a Dollar Tree franchise?
Dollar Tree does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Dollar Tree franchise.
However, the total investment required to open a franchised store similar to Dollar Tree franchise ranges from $66,000 to $4,857,000.
What are the ongoing fees for a Dollar Tree franchise?
Since Dollar Tree 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 6% in royalty fees and 4% in advertising fees ( e.g. Music Go Round ).
What are the financial requirements to become a Dollar Tree franchisee?
All Dollar Tree 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 Tree.
For retail store franchises similar to Dollar Tree, financial requirements can vary significantly. These may include:
- Minimum Net Worth: $1 million to $2 million
- Liquid Capital: $250,000 to $750,000
These averages can vary depending on the specific brand and market size but are common benchmarks for the industry.
How much can a Dollar Tree franchise owner expect to earn?
Since Dollar Tree is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Dollar Tree store.
Who owns Dollar Tree?
Dollar Tree is owned by its shareholders as it is a publicly-traded company. It is listed on the NASDAQ stock exchange under the ticker symbol “DLTR.” There is no single owner; instead, it is owned collectively by investors, including institutional shareholders and individual stockholders.
Disclaimer
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