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- 2022 Franchise 500 Rank
#287 Ranked #381 last year
- Initial investment
$270K - $502K
- Units as of 2022
115 26.4% over 3 years
Here’s what you need to know if you’re interested in opening a Metal Supermarkets franchise.
Metal Supermarkets is a retail industry franchise operating out of its headquarters in Mississauga, Ontario, Canada. New franchise units are available throughout the U.S., Canada, and abroad.
Franchising since 1987, this retail business has remained fundamentally unchanged for decades and grown to over 90 operating units, more than 70 of which are located in the United States. Because they are committed to selling a unique variety of propositions, the company may be able to enjoy long-term relationships with a diverse customer base.
Metal Supermarkets distributes small-quantity metals without a minimum size order. It is one of the world's largest suppliers of industrial metal products, offering their services to more than 60,000 customers. Metal Supermarkets may be ideal for franchisees searching for a sustainable and profitable business-to-business (B2B) model because of its unique and exciting opportunities.
Why You May Want to Start a Metal Supermarkets Franchise
It is not always easy to start a business from the ground up. You will need a considerable amount of wealth, skills, and access to experience. When you open a Metal Supermarkets franchise, you will get these and more. Owning this franchise can be an enriching experience.
The franchisor provides ongoing one-on-one support and guidance. Prior experience in running a metal business is not required because training is offered. Through Metal Supermarkets University, the franchisor gives a multi-week training to learn the business's fundamental aspects. Through this training, you may acquire the necessary skills needed to grow your business.
What Might Make a Metal Supermarkets a Good Choice?
To be part of the Metal Supermarkets team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, or renewal fees. Typical terms of agreement run for a renewable period of 10 years. Franchisees will also need to meet the company's set net worth and liquid capital requirements. With exclusive territories available, the franchise is operated full-time by no more than three employees.
Startup costs, accounts receivable, inventory, and equipment can be financed through third-party sources if needed. However, this is only available to franchisees rendered qualified by the Metal Supermarkets team. Qualified U.S. military veterans may also be given a discount.
How to Open a Metal Supermarkets Franchise
After researching this franchise during your due diligence process, you can complete the request for franchise information. Metal Supermarkets may use this information to contact you to schedule your discovery call if you are deemed a good fit. Following this call, you may attend a series of informational webinars. These webinars cover various pertinent topics, including introducing the company, business model review, territory options, and more.
You may need to speak to at least five existing franchisees since this is a mutually beneficial venture. After that, a Metal Supermarkets franchise representative may schedule a discovery day at their corporate office. Here you may also meet the executive team, who may answer all your questions.
Upon approval and payment of the necessary fees, you will officially become part of the Metal Supermarkets company. Your training starts immediately, after which you may open your Metal Supermarkets franchise.
About Metal Supermarkets
- Franchising Since
- 1987 (35 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Asia, Australia/New Zealand, Canada, South America, Mexico
- # of Units
- 115 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Metal Supermarkets franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $269,500 - $501,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $350,000 - $500,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $150,000 - $350,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $5,000 off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Metal Supermarkets has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 105 hours
- Classroom Training
- 40 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Metal Supermarkets landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Metal Supermarkets ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Metal Supermarkets.
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