Whole Foods Franchise FDD, Profits, Costs & Fees (2024)

Whole Foods Market, established in 1980 in Austin, Texas, by John Mackey, Renee Lawson Hardy, Craig Weller, and Mark Skiles, is a leading multinational supermarket chain specializing in natural and organic products. The company’s headquarters are located at 550 Bowie St., Austin, TX 78703.

Whole Foods Market offers a diverse range of products, including fresh produce, meat and poultry, dairy items, baked goods, prepared meals, and pantry staples.

The company is renowned for its commitment to quality, ensuring that all products are free from artificial preservatives, colors, flavors, and hydrogenated fats. This dedication to natural and organic offerings sets Whole Foods apart from many competitors in the grocery industry.

Currently, Whole Foods operates 518 stores across the United States, with the highest concentration in California, which houses 95 locations. Despite its extensive growth, Whole Foods Market does not offer franchising opportunities; all stores are company-owned and operated.

Initial Investment

How much does it cost to start a Whole Foods franchise? Whole Foods does not offer franchise opportunities, as all of its locations are company-owned.

Therefore, it is not possible to start a Whole Foods franchise, and there is no associated cost for franchising with the company.

For similar retail franchises, however, the initial investment is on average $621,000.

In comparison, for example, Edible Arrangements (a retail food franchise brand) requires an investment upfront of $184,000 up to $410,000 for a franchised store.

Average Revenue (AUV)

How much revenue can you make with aWhole Foods franchise?

Since Whole Foods does not franchise its stores and all locations are company-owned, Whole Foods does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.

However, a similar retail food store franchise makes on average $711,000 in revenue (AUV) per year. For example, a Edible Arrangements franchised store makes on average $541,000 in revenue per year.

Frequently Asked Questions

How many Whole Foods locations are there?

As of the latest data, Whole Foods Market operates 518 stores across the United States. All these locations are company-owned; Whole Foods does not offer franchising opportunities. The state with the highest number of stores is California, hosting 95 locations, which accounts for approximately 18% of the total U.S. stores.

What is the total investment required to open a Whole Foods franchise?

Whole Foods does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Whole Foods franchise.

However, the total investment required to open a franchised store similar to the Whole Foods franchise ranges from $184,000 to $2,217,000.

What are the ongoing fees for a Whole Foods franchise?

Since Whole Foods 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 5% in royalty fees and 5% in advertising fees ( e.g. Edible Arrangements).

What are the financial requirements to become a Whole Foods franchisee?

All Whole Foods 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 Whole Foods.

For retail store franchises similar to Whole Foods, require a minimum net worth ranging from $300,000 to $1,000,000. The liquid capital requirements, which reflect readily available funds for initial operational costs, typically start around $50,000 and can go up to $300,000.

These figures help ensure that franchisees have the financial resources to handle early investment needs and ongoing expenses. Financial specifics can vary by franchise, so it’s advisable to confirm requirements directly with the franchisor.

How much can a Whole Foods franchise owner expect to earn?

Since Whole Foods is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Whole Foods franchise.

Now, assuming the average gross sales for a retail franchise similar to a Whole Foods franchise of $711,000 per store. And assuming a 15% operating profit margin, $711,000 yearly revenue would result in about $107,000 operating profit per year.

Who owns Whole Foods?

Whole Foods Market is owned by Amazon.com Inc., which acquired it in August 2017 for $13.7 billion. This acquisition marked Amazon’s entry into the grocery sector, with Whole Foods continuing to operate under its brand, focusing on natural and organic products across the U.S., Canada, and the U.K.

The integration has brought Amazon Prime benefits to Whole Foods customers and introduced new technologies to enhance the shopping experience.

Disclaimer

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