Some retail stores have been in existence for more than a decade. They have gained popularity over the years and expanded into other countries. Shoprite falls into this category.
Shoprite is a retail store created in 1979, owned by an individual who is a member of the wakefern food cooperative. Shoprite is known for its relatively low prices and a variety of goods.
Some people believe that as vast as Shoprite is, having 2,943 stores around the globe and 149,000 employees cannot be controlled by an individual, therefore, many have been asking questions if Shoprite is a franchise, while some have concluded that Shoprite is a franchise.
But no, Shoprite is not a franchise. Shoprite is a retail cooperative. Owned by a man named Christo Wiese.
Christo Wiese is a billionaire from South Africa. But as of today, Shoprite is owned by a member of the Wakefern Food Cooperative.
A Brief History of Wakefern Food Cooperative
Wakefern food cooperative was founded in 1946 in New Jersey, USA. A wakefern food cooperative is the largest retail cooperative in the USA.
They operate 28 stores. Others are individually owned by members of the cooperative.
Although shoprite is owned by a member of the cooperative, the wakefern food cooperative still has other stores connected to its name. These grocery stores include
Price Rite MarketplaceThe Fresh GrocerDearborn MarketGourmet garage
Understanding The Word Franchise
Shoprite has over 2500 outlets in 15 different countries. With this number of outlets, it is expected of people to assume most of them are franchises.
Franchising is a mode of expanding the business.
A franchisor permits the franchisee to use the company’s name and brand, business styles, and marketing techniques.
An agreed amount is paid to the franchisor upfront, while the remaining royalty fee is paid in installments.
Distinguishing between a retail cooperative and a franchise
Wakefern food corporation has elected members as its board of directors. There is particular to all retail cooperatives. Members of a retail cooperative are not required to pay a royalty fee to anybody as a franchisee does to a franchisor, to become a member of a retail cooperative, a certain amount is required to be paid.
A franchisee does not have the liberty to change the name or brand of the business or redesign the store. The business must be run how the franchisor has designed it. There is no room for creativity.
How to know if a business is a franchise
It’s quite easy to recognize franchise business. Franchise businesses have a print on their product stating whether the business is owned by an individual or a franchise. For people who shop online or place orders online, it can also be posted on the business website if it’s a franchise or not.
How To Start a Franchise
Starting a franchise requires a lot of capital. This money is used to purchase or rent an outlet, purchase products to display at the store, pay the franchisor, etc.
As in every other business, a business plan and layout are also required in starting a franchise. A business plan should contain how to get money to begin the franchise, business expenses, possible returns, the number of staff to be employed, and how much each staff will be paid.
Experienced staff is also required for the successful operation of a franchise. A novice should not be employed in a managerial role. Also, skilled personnel should be employed.
To begin a franchise, the franchisor must have set up rules and regulations to be followed by the franchisee, the rules and regulations have legal backing. It is therefore expected that the franchisee follows these rules and regulations to the letter.
Is There Any Risk in Owning a Franchise?
Yes, there is one large risk in owning a franchise, this risk is not different from any other business risk. It is the risk of loss. As much as franchises make a lot of profit, franchises can also run at a loss if not properly handled.
A good business plan, experience, skill, and huge capital are therefore needed to reduce these risks.
Conclusion
There have been some assumptions that owning a franchise is easy. That assumption is wrong because owning a franchise is tasking. Experience and skill are needed to keep the franchise running.
Yes, ShopRite does home delivery. And they also do free delivery with terms and conditions attached to it. For ShopRite to do free delivery. Goods purchased but are $100 and more in price.
Shoprite products are, they sell many of the national brands, and they do accept coupons.
