Metal Supermarkets Franchise FDD, Profits & Costs (2025)
Metal Supermarkets is renowned as the world’s largest supplier of small-quantity metals, a title it has held since its inception in 1985. Founded by William “Bill” H. Mair in Mississauga, Ontario, just outside Toronto, Metal Supermarkets revolutionized the metal distribution industry by catering to small-quantity buyers.
This innovative approach addressed a gap in the market, providing a wide range of metals with no minimum order requirement, which greatly appealed to a diverse customer base from various industries.
Headquartered in Toronto, Ontario, Canada, the company began franchising in 1987, two years after its founding. This move was part of an expansion strategy that saw the company’s reach extend internationally. Metal Supermarkets entered the UK market in 1994 and the US market in 1996.
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Initial Investment
How much does it cost to start a Metal Supermarkets franchise? It costs on average between $351,000 – $613,000 to start a Metal Supermarkets franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Your Estimated Initial Investment: Franchise Agreement
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $44,500 |
| Equipment, Furnishings and Fixtures | $140,000 – $190,000 |
| Permits, Licenses and Professional Fees | $3,000 – $10,000 |
| Computer System and Software and Telecommunication System | $7,000 – $15,000 |
| Insurance | $4,000 – $7,000 |
| Travel and Living Expenses While Training | $5,000 – $10,000 |
| Security Deposits, Utility Deposits | $5,000 – $10,000 |
| Leasehold Improvements | $15,000 – $45,000 |
| Signage | $3,000 – $6,000 |
| Opening Inventory | $50,000 – $90,000 |
| Initial Advertising | $15,000 – $30,000 |
| Real Estate Leasing | $9,000 – $45,000 |
| Additional Funds – 3 Months | $50,000 – $110,000 |
| TOTAL | $350,500 – $612,500 |
Average Revenue (AUV)
How much revenue can you make with a Metal Supermarkets franchise? A Metal Supermarkets franchised business makes on average $1,749,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,273,000 yearly revenue for similar hardware franchises. Below are 10 Metal Supermarkets competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Metal Supermarkets Franchise Disclosure Document
Frequently Asked Questions
How many Metal Supermarkets locations are there?
As of the latest data, Metal Supermarkets operates 93 locations across the United States, Canada, and the United Kingdom. Most of these locations are franchise-owned, with only 1being company-owned.
What is the total investment required to open a Metal Supermarkets franchise?
The total investment required to open a Metal Supermarkets franchise ranges from $351,000 to $613,000.
What are the ongoing fees for a Metal Supermarkets franchise?
Metal Supermarkets franchisees pay a royalty fee based on monthly gross sales: 6% up to $140,402, 5% from $140,403 to $207,794, and 3% for sales above $207,794. They also contribute 2% of gross sales to the Brand Fund for marketing. Additionally, franchisees must spend at least $10,000 or 1% of gross sales annually on local advertising, subject to approval.
What are the financial requirements to become a Metal Supermarkets franchisee?
To qualify as a Metal Supermarkets franchisee, you should have a minimum net worth between $350,000 and $500,000, along with liquid capital ranging from $150,000 to $350,000.
These financial benchmarks ensure that potential franchisees have the necessary resources to cover the initial investment, operational costs, and ongoing expenses as they establish and grow their franchise location.
How much can a Metal Supermarkets franchise owner expect to earn?
The average gross sales for a Metal Supermarkets franchise are approximately $1.75 million per location. Assuming a 15% operating profit margin, $1.75 million yearly revenue can result in $263,000 EBITDA annually.
Who owns Metal Supermarkets?
Metal Supermarkets is owned by a private equity fund managed by Riverarch Equity Partners, which acquired a majority interest in December 2024. The previous shareholders, including members of the management team, retain a minority stake in the company.
Disclaimer
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