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Description

How to Open a Metal Supermarkets Franchise?

To begin your journey as a Metal Supermarkets franchisee, you will first need to fill out a franchise application and review the franchise disclosure document (FDD). After this, an interview process will typically follow, which may include discussions with current franchisees and potential visits to existing stores. If selected, you will enter into a franchise agreement and can expect to open your store within a timeframe of three to nine months after finalizing your application, depending on various factors such as location selection and construction timelines.

What Makes Metal Supermarkets a Viable Franchise Choice?

The Metal Supermarkets franchise offers a unique opportunity in the wholesale metal distribution sector, focusing on supplying small quantities of metals to businesses, including manufacturing facilities and service providers. The franchise requires an initial investment ranging from $340,500 to $592,500, which includes a franchise fee of $62,500. Additionally, there are ongoing royalty fees and advertising contributions. The established brand presence and absence of national competition in this specific niche provide a solid foundation for franchisees looking to engage in a growing market.

Why Should You Consider Owning a Metal Supermarkets Franchise?

Metal Supermarkets has a proven business model, offering a wide variety of metals and related services, including metal processing and fast delivery. Franchisees benefit from an extensive training program that covers operational standards and sales techniques. This support is invaluable, especially for those without prior industry experience. For individuals passionate about business and service, this franchise can be a rewarding venture, bolstered by the company's long-standing presence in the industry.

Is a Metal Supermarkets Franchise Right for You?

Operating a Metal Supermarkets store requires a commitment to quality service and customer satisfaction. With over 110 locations across the U.S. and Canada, the franchise has a stable foundation and a clear growth trajectory. Potential franchisees should evaluate their own business acumen, financial readiness, and willingness to adhere to the operational standards set forth by the franchisor. The combination of a solid business model and ongoing support makes this franchise a valuable opportunity for the right entrepreneur.

Metal Supermarkets Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

A broad sector defining similar types of franchise businesses.

Industry

Retail Franchises
A more specific division within the broader industry.

Category

Specialty Retail
Available financing options to help start the franchise.

Funding Year

2010
The main organization that owns the franchise brand.

Parent Company

Metal Supermarkets Franchising, Inc.
The key individuals guiding the franchise’s strategy and growth.

Leadership

Stephen Schober
The official business address of the franchisor’s headquarters.

Corporate Address

520 Abilene Drive, Mississauga, Ontario, Canada L5T 2H7
The total amount required to launch the franchise.

Initial Investment

$340,500 - $592,500
The initial fee paid to join the franchise system.

Franchise Fee

$44,500
Ongoing percentage of revenue paid to the franchisor.

Royalty Fee

6%
Regular contribution toward the franchise’s advertising fund.

Marketing Fee

2%
The minimum liquid capital you must have on hand.

Cash Required

$340,500 - $592,500
The minimum total assets (minus liabilities) you must possess.

Net Worth Required

$250,000 - $500,000
The typical yearly revenue generated per franchise location.

Average Revenue

$2,160,901
The middle value of yearly revenue among franchise locations.

Median Revenue

$1,955,191
The smallest reported annual revenue among franchisees.

Lowest Revenue

$284,230
The largest reported annual revenue among franchisees.

Highest Revenue

$6,092,476
The estimated timeframe to recover your initial costs.

Breakeven Time

18 Months
The estimated period to recoup your total investment.

Investment Payback

6 Months

Metal Supermarkets Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.

The overall number of operating franchise locations.

Total Units

83
The number of locations owned by independent franchisees.

Franchised Units

81
The number of locations owned and run by the franchisor.

Corporate Units

2
Units 2021 2022 2023
Total Units 68 75 83
Net Change YoY 7 8
Franchised Units 64 72 81
Net Change YoY 8 9
Corporate Units 4 3 2
Net Change YoY -1 -1

Company Background

Metal Supermarkets is a global franchise chain specializing in the supply of metal products, offering a comprehensive range of metals in various shapes and sizes. Founded in 1985, the company has grown to over 100 locations worldwide, providing customers with quick access to a wide selection of metals, including aluminum, steel, brass, and copper. Metal Supermarkets caters to both businesses and DIY enthusiasts, ensuring that everyone can find the right metal for their project, regardless of size or quantity.

Franchise Opportunity

Investing in a Metal Supermarkets franchise presents a unique opportunity to tap into the thriving metal supply industry. With a proven business model and strong brand recognition, franchisees can benefit from the company's extensive support system, including training, marketing, and ongoing operational assistance. As a franchise owner, you will have the chance to serve a diverse customer base and meet the growing demand for metal products in various sectors, including manufacturing, construction, and home improvement.

Corporate Structure

Metal Supermarkets, Inc. is based in Mississauga, Ontario, Canada, and operates under a franchise model with a structured support system for its franchisees. The company provides a cohesive framework that includes operational guidelines, marketing strategies, and supply chain management to ensure consistency and quality across all locations. This corporate structure allows franchise owners to leverage the brand's reputation while maintaining operational efficiency.

Royalties

Metal Supermarkets charges a royalty fee of 5% of gross sales, which helps support the brand's marketing and operational initiatives. Additionally, franchisees contribute to a local advertising cooperative, which typically ranges from 1% to 2% of gross sales, enhancing regional marketing efforts. These contributions ensure that franchisees benefit from both national and local advertising campaigns, helping to drive customer traffic to their stores.

Company Mission

The mission of Metal Supermarkets is to provide customers with fast and convenient access to a wide variety of metal products, coupled with exceptional customer service. By focusing on quality, reliability, and flexibility, the company aims to empower both businesses and individuals to complete their projects efficiently. Metal Supermarkets strives to be the go-to source for metal products, fostering long-term relationships with customers and franchise partners alike.

Brand Story

Metal Supermarkets began its journey in 1985 when founder Christopher H. Harlow opened the first store in Toronto, Canada. The concept was simple: provide customers with immediate access to metal supplies in any quantity they needed, without the hassle of minimum order requirements. Over the years, the brand expanded rapidly, establishing itself as a leader in the metal supply industry. Today, Metal Supermarkets operates in multiple countries, consistently emphasizing customer service and convenience while adapting to the evolving needs of its clientele.

Frequently Asked Questions

The estimated total investment to open a Metal Supermarkets franchise ranges from $340,500 to $592,500, which includes an initial franchise fee of $62,500 payable to the franchisor.