Do you want to start a convenience store business by buying QuikTrip franchise? If YES, here is how much it cost to open a QuikTrip franchise. QuikTrip is a retail Franchise that was founded in Tulsa, Oklahoma. The business was set up in 1958 by Mr. Chester Cadieux.
This business came to Mr Cadieux as an idea as he wanted to solve the needs of people who came from far off and are in need of the basic necessities of living. The man set up the first convenience store in Tulsa.
With the help of Burt Holmes, a college friend, Mr. Cadieux made an initial investment of $16,000 and then put up the very first Quick trip business in the year 1958. Initially, they sell only limited kinds of items at a higher price. After several years, they continue to expand, having other stores opened in different areas like Kansas, Wichita, and Des Moines.
Financial Investment Required to Open QuikTrip Franchise
- Investment Range: $211,450 – $1,601,500
- Franchise Fees: $25,000
- Cash Investment: $25,000
- Royalty fee: 5% of the monthly gross revenue
QuickTrip indeed offers franchise, and its franchise cost is one of the most reasonable in the convenience store industry.
- Investment Range
The investment range for when you want to buy into a QuickTrip franchise is between $25,000 and $30,000.
- Franchise Fees
Just like every franchise business, QuickTrip would want you to pay franchise fees, and their franchise fee is $25,000. This payment is non-refundable and quite renewable after a period of time.
- Cash Investment
The company also expects new franchisees to have liquid cash in the tune of about $25,000. This will help them to cater for any running expenses in the first year of business.
- Royalty fee
The company also has an ongoing royalty fee which it requires from its franchisees. This fee is about 5% of the monthly gross revenue of the franchise unit.
- Franchisee training
New franchisees with QuikTrip will be offered training and support to equip them for the business ahead. The franchise owner or any other staff designated by him can attend the training, which is divided into 2 different sessions. Trainings will be offered at the company’s Head Office in Oklahoma and also onsite at any location approved by the QuikTrip Corporation.
How to Apply to Open a QuikTrip Franchise Step By Step
Anyone looking to open a QuikTrip franchise is expected to be willing to take on the challenges of the business. Although there is little or no information provided by the franchisor on how to join the franchise, here are basic steps to take:
Table of Content
Submit Your Information
The first step in acquiring a QuikTrip franchise is to visit the company’s website to complete the application form. Once your application has been received, you will get notified of its receipt. Your application will then be reviewed by those associated with the franchise. You should expect to get a response within a few days. If you are lucky enough to be considered as a franchisee with the company, you will be assigned a franchise manager.
Hire a Franchise Consultant
Regardless of the quantity of information available online, it is always recommended you seek the expertise of a franchise consultant to help guide you through the process. A franchise consultant will also help to protect you against certain pitfalls that may occur without their expertise.
Attend a ‘Discovery Day’
A discovery day is a comprehensive meeting between the company and its potential franchisees. It can take place at a local outlet of the franchise, but will most likely happen at the company’s corporate office in Tulsa, Oklahoma.
Nevertheless, the franchisees in attendance will get the opportunity to know more about what QuikTrip can offer in terms of support, and can ask questions. If done at the corporate office, a tour of the different departments and introductions to franchisee training and support personnel are common.
Speak to Other Franchisees
Also note that within the FDD provided by the company is a listing of all current franchisees. You should note a few that are close to you and visit them. Are they happy with the QuikTrip support? Is the reality of running a convenience store business in line with prior expectations (financially and otherwise)? There is no better way to understand a franchise than from someone who is part of the franchise.
Find a Suitable Location
QuikTrip will provide parameters for your territory in the FDD and franchise agreement. According to reports, the company may also help with site selection. You will have to get your location approved by QuikTrip before you can move forward.
Sign The Agreement
Have it in mind that QuikTrip may not offer you the platform to negotiate terms in the agreement. Owing to that, it is still advisable you leverage the experience and expertise of a lawyer or a franchise consultant to find the best solutions for your particular situation. Nonetheless, don’t forget that QuikTrip’s success in the industry is based upon a proven system and consistency of the brand.
Obtain All Necessary Permits and Insurance
In the United States, licenses and permits will surely vary by state, city, county, etc. QuikTrip will provide you with knowledge of the permits and insurance you need to operate their business system. It is also advisable you check with local authorities to guarantee compliance.
Hire Staff and Attend Training
Training and support are always provided to new QuikTrip franchisees to ensure they understand how the company and its franchise business setup works.
The franchise owner or any other staff will be expected to attend the meeting which is divided into two sessions. This training tends to be at the company’s Head Office in Oklahoma and also onsite at any location approved by the QuikTrip Corporation. Intense training will be provided to franchisees and they will teach you all you need to know to manage the franchise business effectively.
Open Your Franchise Business
At this point, you are ready to open your QuikTrip franchise. However, before opening, you should let your potential customers know of your new business. QuikTrip also stipulates strategic processes for signage, ads, and other initiatives to be performed. Estimates for these initiatives will usually be a part of the start-up costs quoted in the FDD.
What You Must Know About QuikTrip Franchise
After several years, Mr. Cadieux decided to modify and change his products. He started selling gasoline in a self-service manner in the year 1971. He also inspects all his items and identifies which of them sells the most and which of them sells the least.
Then, he immediately eliminates the least selling products, and replaces them with the selling ones. He also started selling bulky amount of products at low prices, such as candy, cigarettes, soda, coffee, and beer.
Cadieux further added his very own product, the QT beer, which was very popular among college students as well as blue collar workers. He also has his own labeled gasoline called the Redline. He continued to add up more gasoline station pumps to his different stores and also puts up canopies on them for his customer’s convenience.
The company also managed to add an Automated Teller Machine to their store so that travelling people who are in need of cash can easily withdraw money anytime in their store.
QuikTrip began to offer fast foods and fountain beverages at its stores much later, and even then, it was the first convenience store to offer a self-serve soda fountain and a self-serve coffee bar. The company also had a private label beer by this time, but it was later phased out to make way for the private label brand of fast food, Quick `n Tasty and HOTZI sandwiches in 1993.
Quick `n Tasty heat-and-serve sandwiches included Texas ham and Cheese, BarBQ Pork Rib, and the Super Po Boy. QuikTrip sold most of the jumbo-sized sandwiches for one dollar. HOTZI breakfast sandwiches included the sausage, egg, and cheese biscuit and the breakfast burrito.
The QuikTrip business is valued at over $9 billion and includes a coverage area of 10 states which includes the following; North Carolina, South Carolina, Arizona, Kansas, Nebraska, Missouri, Oklahoma, Texas, Georgia and Iowa, all within the southern, south western and the Midwest of the united states.
In the year 1968, the company began expansion outside of Oklahoma and they began the sale of gasoline in the year 1971. Its franchise units have since grown to over 580+ units within the ten states.
QuikTrip has been involved in the dishing of quality products and services to their customers for more than 55 years now. The company has the goal of becoming the best in the industry that caters for the service and delivery of items offered in a convenience store.
With over 10,000 employees, Fortune magazine has ranked QuikTrip high on the list of ‘Best Companies To Work’ for the last nine years. QuikTrip also gives back to the communities it serves, donating 5% of net profits to charitable organizations.