Piggly Wiggly Franchise FDD, Profits, Costs & Fees (2024)

Piggly Wiggly, founded in 1916 by Clarence Saunders in Memphis, Tennessee, was America’s first self-service grocery store.

This concept transformed the grocery industry by letting customers pick their own items directly from shelves, a revolutionary idea at the time.

Today, Piggly Wiggly has over 500 stores across 18 states. The company is headquartered in Keene, New Hampshire, and offers franchises to independent retailers. Franchisees benefit from marketing support, promotions, and a strong brand. This model ensures high service and quality standards.

Piggly Wiggly’s unique name and history have made it a beloved brand. Despite changes in ownership, it has remained dedicated to customer service and community involvement for over a century.

Initial Investment

How much does it cost to start a Piggly Wiggly franchise? It costs on average between $1,404,000 – $4,857,000 to start a Piggly Wiggly franchised location.

This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of store you choose, the location, and whether the franchisee chooses to lease or purchase the property.

Type of ExpenditureAmount
Initial Franchise Fee$0
Store Layout plans$5,000 to $10,000
Equipment and Improvements$950,000 to $3,200,000
Opening Inventory$350,000 to $1,200,000
Miscellaneous Opening Costs$10,000 to $50,000
Insurance$25,000 to $70,000
Pre-opening Advertising$10,000 to $20,000
Market Analysis ChargeBetween $4,000 and $7,000 per market analysis
Additional Funds – 3 months$50,000 to $300,000
TOTALS$1,404,000 to $4,857,000

Average Revenue (AUV)

How much revenue can you make with a Piggly Wiggly franchise? A Piggly Wiggly franchised store makes on average $4,829,000 in revenue (AUV) per year.

This compares to $884,000 yearly revenue for similar convenience franchises. Below are 10 Piggly Wiggly competitors as a comparison:

piggly wiggly franchise competitors

Piggly Wiggly Franchise Disclosure Document

Recent Legal Disputes and Litigation

Recent legal disputes involving Piggly Wiggly franchises in 2022 and 2023 have focused on issues like territorial infringement, contract termination, and fee transparency.

Territory disputes have been a key concern. Franchisees claim that new stores or company-owned locations have opened near their exclusive areas, reducing their market share. This type of conflict is common in the grocery industry and has been a recurring issue for Piggly Wiggly.

Contract termination disputes also surfaced in 2022. Franchisees argued that their agreements were unjustly terminated without proper notice or a chance to fix operational issues. These concerns have been raised especially by Midwest franchisees.

Fee transparency has been another ongoing issue. Franchisees have questioned how marketing fees and royalties are allocated, feeling they didn’t receive enough support in return for these payments.

These disputes highlight common challenges in franchising, especially regarding territorial rights, contract terminations, and fee structures. Franchisees often struggle to win legal battles due to the substantial resources franchisors like Piggly Wiggly can deploy.

Frequently Asked Questions

How many Piggly Wiggly locations are there?

As of the latest data, Piggly Wiggly operates approximately 530 locations across the United States. The majority of these stores are franchise-owned, with a smaller number being company-owned.

The specific breakdown indicates that over 450 locations are franchise-owned, while around 80 are company-owned. These stores are primarily located in the southeastern and midwestern regions of the U.S.

What is the total investment required to open a Piggly Wiggly franchise?

The total investment required to open a Piggly Wiggly franchise ranges from $1,404,000 to $4,857,000.

What are the ongoing fees for a Piggly Wiggly franchise?

Piggly Wiggly franchisees are required to pay a royalty fee of 1% to 2% of gross sales. Additionally, there is a marketing fee that ranges from 0.5% to 1% of gross sales, which covers regional and national advertising campaigns, as well as promotional efforts.

These fees help support the overall brand and its marketing initiatives, ensuring continued operational assistance and brand visibility for franchisees.

What are the financial requirements to become a Piggly Wiggly franchisee?

To qualify as a Piggly Wiggly franchisee, you need a minimum net worth of $1 million and at least $100,000 in liquid capital. These financial requirements ensure that franchisees have the financial resources necessary to operate their business successfully and support initial startup costs.

How much can a Piggly Wiggly franchise owner expect to earn?

The average gross sales for a Piggly Wiggly franchise are approximately $4.83 million per location. Assuming a 15% operating profit margin, $4.83 million yearly revenue can result in $724,500 EBITDA annually.

Who owns Piggly Wiggly?

Piggly Wiggly is owned by C&S Wholesale Grocers, a major grocery supply company based in Keene, New Hampshire. C&S Wholesale Grocers acquired Piggly Wiggly Midwest, which operates stores primarily in the Midwest, as part of its retail operations.

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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