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How to start US Dollar Store Franchise in India – Complete Guide

If you want to start a US Dollar franchise in India, then you are in the right place. Here we are going to discuss requirements, rate of interest, cost of investment, and contact details to buy a US dollar store franchise business in India.

US Dollar Store was first started in New Delhi in 2004. Us Dollar is a retail store business like a variety store having food, health products, auto accessories, beverages, home products, gifts, etc. They are finding enthusiastic, motivated entrepreneurs with sound financial and business qualifications.

Why Start a US Dollar Store Franchise in India?

  • Growing Middle Class: India’s middle class is expanding rapidly, creating a demand for affordable goods.
  • Urbanization: Increased urbanization is driving the need for convenient shopping options.
  • Consumer Behavior: Indian consumers are becoming more value-conscious, seeking quality products at lower prices.
  • Market Potential: The retail market in India is expected to reach USD 1.1 trillion by 2025.

7 Steps to Open a US Dollar Store Franchise in India

pic of a us dollar store

1. Research and Planning

Conduct thorough market research to understand the demand for dollar store products in your area. Identify existing dollar stores and their strengths and weaknesses. Also, understand what products are in high demand among local consumers.

2. Choose the Right Franchise Model

Research various US dollar store franchise options available in India. Consider factors such as brand reputation, support provided, and initial investment required. Carefully review the franchise agreement, focusing on terms related to fees, royalties, support, and training.

Franchise BrandInitial InvestmentRoyalty Fee
Dollar StoreINR 20 lakhs5%
Dollar TreeINR 25 lakhs4%
99 Cents Only StoresINR 30 lakhs3%

3. Secure Financing

Investment Required: Estimate the total investment required, including franchise fees, setup costs, inventory, and working capital. Explore various funding options such as personal savings, bank loans, and investors.

Expense CategoryEstimated Cost (INR)
Franchise Fee5 lakhs – 10 lakhs
Setup Costs5 lakhs – 8 lakhs
Inventory5 lakhs – 7 lakhs
Working Capital2 lakhs – 5 lakhs
Total Investment17 lakhs – 30 lakhs

4. Location Selection

Site Selection Criteria: Choose a location with high foot traffic, visibility, and accessibility. Consider areas near residential neighbourhoods, schools, and commercial hubs. Negotiate a favourable lease agreement with the property owner.

Location TypeProsCons
Shopping MallHigh foot trafficHigher rental costs
High StreetVisibility and accessibilityCompetitive market
Residential AreaSteady customer baseLower foot traffic

5. Store Setup

Design an efficient store layout that maximizes space and enhances the shopping experience. Establish relationships with reliable suppliers to ensure a steady supply of high-quality products.

Store Setup AspectDetails
Store LayoutPlan shelves, aisles, and display areas for optimal customer flow.
Supplier SelectionChoose suppliers offering quality products at competitive prices.
Inventory ManagementImplement an inventory management system to track stock levels.

6. Marketing and Promotion

Marketing Plan: Develop a marketing plan that includes online and offline strategies to attract customers to your store. Plan promotional activities such as discounts, loyalty programs, and events to drive foot traffic.

Marketing StrategyDetails
Online MarketingUtilize social media, SEO, and email marketing to reach customers.
Offline MarketingDistribute flyers, run local ads, and host store events.
Loyalty ProgramsOffer rewards and discounts to repeat customers.

7. Staff Recruitment and Training

Hire staff members who are customer-friendly and efficient. Ensure they are trained in customer service and store operations. Provide ongoing training to staff to keep them updated on product knowledge and sales techniques.

Training AspectDetails
Customer ServiceTrain staff to provide excellent customer service.
Product KnowledgeEducate staff about the products and their benefits.
Sales TechniquesTeach staff effective sales techniques to boost sales.

Read: Top Retail Franchise Opportunities in India

Frequently Asked Questions

What is the average investment required to start a US dollar store franchise in India?

The average investment ranges from INR 17 lakhs to 30 lakhs, depending on the franchise brand and location.

What is the Area Required to Start a Dollar Store in India?

The minimum space required is around 100-1000 per sq ft. According to the area, you can choose whichever type of store like a supermarket, Residential, commercial, or mall.

What support do franchisees receive from the franchisor?

Support typically includes training, marketing, inventory management, and operational assistance.

How long does it take to set up a US dollar store franchise in India?

It generally takes 3-6 months to set up, including finding a location, signing agreements, and setting up the store.

What are the key challenges in running a US dollar store franchise?

Challenges include competition, managing inventory, and maintaining consistent foot traffic.

Contact Details

Nanson Overseas Pvt. Ltd.
Mr. Gautam Sahni
Email: [email protected],
Email: [email protected]
W-19, Greater Kailash- II,
New Delhi-110048, India