CARREFOUR Franchise Startup Cost, Profit & Opportunities
When it comes to bringing the best customer services with great quality products together, you can count on is Carrefour to deliver.
The supermarket chain, which is considered among the largest in the world, has been able to get into the hearts of shoppers and they are already a household name across the world. Their popularity has made a lot of business entrepreneurs to want to know how much is a Carrefour Franchise?
FRANCHISE INFORMATION ABOUT THE COMPANY
Carrefour is a supermarket of French origin established by three families in the city of Annecy, France in the year 1959. Since inception, the company has grown to locating stores at different parts of the world, while creating innovative and new store formats to satisfy the needs of their modern customers.
The company is considered to be the largest supermarket chain in the whole of Europe. It was reported that in the year 2015, Carrefour made a whopping $70 billion as revenue in all their business formats and an additional $15 billion in the sales of gas.
IS CARREFOUR A FRANCHISE?
Is Carrefour a franchise? The question pops when a prospective franchisee takes interest in the format of services the company renders. The company is a franchise and they have been selling franchise opportunities since the year 1960.
THE CARREFOUR BUSINESS FORMAT
Carrefour delivers their services through several formats, which include hypermarkets, convenience stores, supermarkets and cash and carry stores.
- The hypermarket format is well preferred by shoppers who seek great value in their items through great discount offering and a wide variety of choices to pick from. Shoppers have the opportunity to select every item they have on the list at a spot and not only that, they are offered the best quality products at relatively low prices.
- The supermarket delivers food items as well as some other non food items. Carrefour Supermarkets offer convenience and great value through the provision of fresh foods produced locally. They also offer attractive promotions and sales.
- Carrefour Convenience store format focus more on an attractive and modern feel that tend to meet the needs of the local people. At Carrefour convenience stores, shoppers are offered a quick shopping experience and also allowed to shop at extended hours. The Carrefour franchises are basically convenience stores and there are about 8,000 units located at different parts of the world.
- The cash and carry stores offer on sale bulk and non-bulk products at wholesale prices to customers who desire to get great value for their money. Items are displayed in these stores on pallets and are either sold per unit or in bulk.
THE CARREFOUR FRANCHISE MODEL
Franchisees with Carrefour benefit from a workable franchise model that the company has developed over the years.
Customers are the main focus of the company and they have not compromised over the delivery of quality products at great value. A Carrefour franchisee will also benefit from the combination of the company’s purchasing power and network combined with their personal skills to run a thriving business.
Despite the fact that the company is an international supermarket chain, they give their franchisee the freedom to be autonomous and encourage them to work based on the needs of their local environment.
Franchisees are also given the opportunity to sell local items in their stores in order for them to meet the local demands of the customers.
WHAT QUALITY AND SKILLS DO I NEED AS A CARREFOUR FRANCHISEE?
- A franchisee must have an appeal for food distribution
- Management skills
- The franchisee must have an autonomous sense of control of the business unit
- Great interpersonal skills
- Geographical mobility
- Organizational skills
- Passion to deliver great customer service.
HOW MUCH DOES A CARREFOUR FRANCHISE COST?
Just as it is with other franchises, Carrefour franchise does have some financial implications. The total investments needed to operate a Carrefour franchise unit is between $90,000 and $280,000 with a liquid capital requirement of about $280,000.
CARREFOUR FRANCHISE FEE
The Carrefour franchisee fee is part of the Carrefour franchise cost and it is the payment that a franchisee is expected to make to the company in order for them to be granted the license to operate under the company’s brand names and identities. The Carrefour initial franchise fee is $10,000 and an on-going royalty fee of 5% is also payable to the company on a monthly basis.
DOES CARREFOUR FRANCHISE OFFER TRAINING?
As a franchisee with the company, you will be offered an intensive training to prepare and empower you for the task of running your franchise unit. Carrefour offers training programs on management, jobs, and merchandising. The company established a training center named TEACH, which is exclusively designed to training their franchisees.
WHAT IS CARREFOUR TERMS OF AGREEMENT AND RENEWAL?
The length of the period that a franchisee can hold the license to operate with the Carrefour franchise name is 7 years. This will be renewed automatically after expiration.
HOW TO BUY A CARREFOUR FRANCHISE
Once the franchisee has gotten all the required information on how to buy a Carrefour franchise, they can then proceed to the company’s website to submit their application. This will be reviewed and if approved, the company’s franchise manager will get back to the franchisee and make further evaluations to ensure that they have all the required documents and cash requirements to establish a franchise unit.