Chryss John T.

Querol
FME 2 - Franchising

US Dollar Store Case Study

I – Introduction

The US Dollar Store was incorporated by Joe Kieren to cash on the proven

concept dollar store segment in the US. In a survey conducted in the year 2000, it was

found that 16.5% of total mega general merchandise sale of $150 billion was through

the dollar store segment.

It ventured into international franchising with the objective of offering the best value for

money merchandise through the most exciting fun stores through strong franchise

network.

The US Dollar Store intends to offer its franchise across the world. In has

appointed NOPL as a master franchisee for India, Pakistan, Nepal, Bhutan,

Bangladesh, and Sri Lanka.

Nanson Overseas Pvt. Ltd. (NOPL) was incorporated in 1999, they are engaged in

manufacturing, sourcing and exporting quality product. Moreover, NOPL is a buying

agent for many retail chains operating in UK and US.

II – Issues Underlying the Problem

 Franchisee will pay territory license with US Dollar Store, USA/Master Franchise

of US Dollar Store, USA for particular territory after paying Franchise fee.

 Equipment is not included in investment

 Software/Hardware Support is not included in the Franchise Fees

  The facility is not included

 Low franchise fee

 The price of investment and trainings is high

III – Alternative Solutions to the Problem

 Franchisor could include the territory license to the franchise fee

 Ongoing trainings on operations and software/hardware support should be

provided by franchisor to promote quality service

 The franchisor may formulate packages to entice aspiring franchisees

IV – Conclusion

 The franchise program should list down all fees for transparency of the firm.

 The investment needed to start and operate single unit franchise is high

 Territory lockup for three kms secures profitability and target segmented

customers loyalty

V – Recommendations

 Franchise packages can be implemented to entice target franchisees

 Ongoing Software/Hardware Support should be included in the ongoing support

to franchisees

VI – Factual Experience

Franchisezing (2017) featured in their blog The US Dollar Stores in India stating

that US Dollar Store promises franchisees who are willing to invest in it a very

affordable business opportunity and subtly assists them in achieving their business

goals. If you are looking for a golden investment opportunity in the retail sector, this

absolutely exceptional retail brand has an equally ground-breaking history of making

huge chunks of profits and can be equally profitable for you. It has the potential to

become a very well-known business opportunity in the retail franchise sector.