Miniso Franchise Costs $398K (2022 Profits & Stats)

With more than 50 outlets in the US alone, Miniso offers a variety of affordable lifestyle and consumer products, providing a wide range of fashionable and functional items for daily use.

Yet, Miniso has always preferred to own most of its stores: only a fraction of its outlets are franchises (7 as of 2022). So why should you choose to open a Miniso franchise? Is this a good (profitable) business?

In this article we’re looking into Miniso and its latest Franchise Disclosure Document to find out how much it (really) costs, and how profitable it really is. Let’s dive in!

Key stats

Franchise fee$20,000
Royalty fee5.5%
Marketing fee5%
Investment (mid-point)$302,000
Average sales$226,000
Sales to investment ratio0.8x
Minimum net worthn.a.
Minimum liquid capitaln.a.
Source: Franchise Disclosure Document 2022

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About Miniso

Miniso is a Japanese designer retail brand known for its wares such as homewares, cosmetics, and accessories. It provides a wide range of simple, natural, quality products with good designs and affordable prices to consumers around the world.

Miniso was founded in 2013 by Miyake Junya and Ye Guofu as a Japanese lifestyle store. It began franchising in 2018 and currently has over 5,500 stores and a presence in more than 90 countries globally. As of 2021, the company had 53 franchises in the US and 55 in Canada. The US office is headquartered in Pasadena, California.

Miniso is a leading lifestyle product retailer that believes in the potential of young people, and its original intention was to enable the young generation to enjoy life through high-quality products and services.

Today, the Miniso franchise is a great opportunity for individuals and companies to build and manage their locations, offering quality and affordability.

Miniso franchise pros and cons

The pros:

  • Site selection assistance: The franchisor helps its franchisees with site selection assistance to identify a viable business location considering foot traffic, competition, and demographics. Also, it provides them with store designs and floor plans.
  • Marketing support: Miniso offers its franchisees comprehensive marketing and advertising resources and systems to help them create awareness and promote their services and products. These are social media, website development, and local market advertising campaigns.
  • Detailed training programs: The franchisor has a comprehensive training program to help its franchisees learn about its concept and establish their stores. Also, it helps them with their launch and growth strategies.
  • Minimal store footprints: The franchisor has small footprint requirements ranging from 500 to 3000 sq. ft., which can fit into most real estate opportunities with potential traffic and profitability.
  • Diverse product range: Miniso offers a wide variety of quality products, giving franchisees a competitive advantage and multiple income streams.
  • Strong brand popularity: With a presence in over 90 countries, Miniso offers its franchisees an opportunity to be part of a well-known and renowned brand, attract a lot of customers, and improve their bottom lines.
  • Third-party financing: The franchisor offers its franchisees financing through third-party partners to fund their startup and franchise fees.

The Cons:

  • No exclusive territory protection: The franchisor does not offer its franchisees the right to operate in a protected territory. Franchisees may face competition from other Miniso franchises or brands affiliated with the parent company.
  • Not a passive investment opportunity: The franchisor does allow for absentee ownership. Franchisees are supposed to take part in the day-to-day operations and management of their stores.

Miniso franchise costs

You would have to invest on average $398,000 to open a Miniso franchised business (under the Model A consignment program).

Note that you would invest instead $368,000 under the Model B purchased inventory program, and $139,000 under the Model C independent operator program.

The investment covers all the start-up costs you may need to open a Miniso franchised business. You must pay the franchisor an initial franchise fee of $10,000 – $50,000. In addition to this franchise fee, the investment also covers:

  • Lease and Construction: Renovations and leasehold improvements
  • Equipment: Material and Equipment Fee (computers included)
  • Operating costs: merchandise deposit, initial inventory purchase, security deposit, fees for traveling to review proposed site locations, training expenses (operations), training travel and lodging costs, grand opening fee, payroll for 3 months, additional funds for 3 months, etc.

Here’s the full breakdown of costs:

Model A

Type of ExpenditureAmount
Initial franchise fee$20,000
Merchandise deposit$150,000 – $200,000
Equipment$30,000 – $50,000
Marketing$10,000 – $50,000
Operating costs$100,800 – $165,500
Total$310,800 – $485,500
Source: Franchise Disclosure Document 2022

Model B

Type of ExpenditureAmount
Initial franchise fee$20,000
Initial Inventory purchase$90,000 – $200,000
Equipment$30,000 – $50,000
Marketing$10,000 – $50,000
Operating costs$100,800 – $165,500
Total$250,800 – $485,500
Source: Franchise Disclosure Document 2022

Model C

Type of ExpenditureAmount
Initial franchise fee$10,000 – $50,000
Security deposits$10,000 – $50,000
Operating costs$39,900 – $117,600
Total$59,900 – $217,600
Source: Franchise Disclosure Document 2022

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Miniso franchise fees

The initial franchise fee for a Miniso franchise is $20,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.5% of revenues.

Miniso franchise revenue

Miniso franchised businesses made $226,000 in sales on average per year in 2021.

Unfortunately, Miniso’s franchised business doesn’t provide much information about its franchise’s financial performance in its Franchise Disclosure Document 2022. Instead, we obtained this number by dividing the total revenue of all the franchises ($2.0 million) by the number of franchise-owned businesses (7 as of 2021).

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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.

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