Target Franchise Cost Requirements of Store Now

Target is known to be one of the biggest retail chains in the U.S. which offer a broad selection of goods in-person via its stores and online via its website. Target can prove to be a great franchising option for local company owners because it has more than 190 shops countrywide and is a well-known brand. How to own a Target franchise ? Let’s find out. 

As per statistics, the global market for department stores and other general merchandise stores increased by 7.3% CAGR in 2022 from $2,539.94 billion to $2,724.15 billion in 2023. With a CAGR of 6.2%, the market for department shops and other general merchandise stores is anticipated to reach $3,468.52 billion in 2027.

 

Is Target a franchise?

No, Target is not a franchising opportunity. Being a general merchandise retailer with more than 1,900 locations nationwide, Target is instead run by the Target Corporation. The company was formerly known as the Dayton Company before changing its name to Dayton-Hudson and then, in 2000, to Target Corporation.

Although not offering any of its stores for the franchises to the general public, Target does permit anyone to purchase its stock, which is publicly traded on the S&P 500 Index. 

Thus, investing in the Target corporation might turn out to be the best thing if you are enthusiastic about the Target brand and are interested in becoming engaged differently.

Does Target Franchise?

Target Corporation is a well-renowned American retail corporation that is based in Minneapolis, Minnesota. It is a part of the S&P 500 Index and the eighth-largest retailer in the US. The company is additionally one of the biggest privately held American-owned employers in the country. 

The discount retailer Target, the supermarket Super Target, and “small-format” outlets formerly known as Target Express and City Target and before being integrated under the Target branding are just a few of their retail options.

By having drop ceilings, wider aisles, attractive presentation of the merchandise, and generally cleaner fixtures, Target stores are intended to be more appealing than large big-box stores. Graphics support the store’s advertising imagery. Additionally, modern signage, liners, and backdrops are used to dress the shelves. These materials are frequently printed on low-cost materials like paper, corrugated cardboard, and foam boards.

 

How much does it cost open a Target franchise?

Target Franchise fee can cost somewhere between $50,000 and $75,000 per location. The cost price of a Target franchise can range from a few thousand dollars to one million dollars. Franchise owners typically bring in an annual pretax income of $80,000. In the US, franchise owners are subject to a 21% franchise tax.

How much is a Target franchise ?

Target is not a franchise. There is therefore no information available concerning their cost.

How much do Target franchise owners make?

Target is not franchising its operations. However, The average annual salary for a Target company franchise owner patners in the United States is roughly $87,940, according to the Bureau of Labor Statistics.

 

Facts That Nobody Told You About Target

Some interesting facts about Target are

• The brand started with a church fire. 
• The big red balls that one can find outside a Target store are for his or her safety. 
• They get to know if you are pregnant even if your family fails to know about it. 
• The brand permits customers to breastfeed anywhere in their stores. 
• They like refrigerating Doritos. 
• The brand opened 11 stores in a single day once. 

Target Franchise Review and Information
Industry Type	Retail Franchises
Sub Category	Global Departmental Stores
Year Established	Corporation (1902)Store (1962)
Company Name	Target Corporation
Founder	George Dayton
Franchising Started	Does not franchise
Employees at Company H.O	440,000
Franchise Expansion Plan	Does not franchise
Number of Units	1948
Number of Franchise Units	Does not franchise
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Minneapolis, Minnesota

Target Franchise Requirements

Target does not provide franchises. However, considering their competitor brands, it can be estimated that if in case they decide to provide franchises to potential franchisees, they will be required to possess at least $40,000 as liquid capital along with a net worth of more or about $40,000. 

 

Target Training to Franchises

They do not provide franchise opportunities as per their FDD.

How is Target Territory Granted to Franchises

They do not provide franchise opportunities as per their FDD.

What is the Franchise Term of Agreement and Renewal?

They do not provide franchise opportunities as per their FDD.

Does Target provide Financial Assistance to Franchises?

They do not provide franchise opportunities as per their FDD.

Target Rankings

Target does not provide franchises to potential owners. However, as far as the corporation is concerned, it is known that it has a total of around 1,948 stores open as of 2023, and was placed No. 32 on the 2022 Fortune 500 ranking of the largest US companies by total revenue.

Franchise Deck Analysis and Overview

Companies like Target may decide against franchising for a variety of reasons. But the main reason is that they currently have sufficient funding from their current business operations and do not require any more expansion that franchising might provide.

Also, they might not want to collaborate with other franchisees or business partners or take any risks associated with them. Another explanation would be that Target does not want to put its brand at risk by using anyone outside its own staff. 

It would be a major risk for Target to allow new franchises to possibly undermine this, as the firm values its brand recognition and store quality very highly.

Competition Analysis of Target Franchises

Target	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Target	–	–	–	–	–	3.9/5.0
Amazon Franchise	–	$10,000	–	$1M-$4.5M	–	4.0/5.0
Macy’s Franchise	$350,000-$685,000	$15,000	7%	$24,8 billion	–	3.8/5.0
Kroger Franchise	–	–	–	–	–	3.7/5.0
Walmart Franchise	–	–	–	–	–	4.0/5.0

The Franchise Deck rating for Target’s franchise is 3.9/5.0.

Conclusion: Can you own a Target franchise?

Instead of being a franchise, Target is a company owned by the Target Corporation, which has its corporate headquarters in Minneapolis and opened its first Target discount shop there in 1962. It is not a franchise because, among other things, Target does not require the extra funding that royalties from franchising would bring in or just does not wish to collaborate with outside business partners.

They can prove to be a significant investment if they decide to start franchising their operations in the near future. However, you must go through all the requirements, costs.

Entrepreneurs who want to open a franchise can look at 

1. Whole Foods Franchise 
2. TJX Franchise
3. Walmart Franchise
4. Kroger Franchise 
5. Trader’s Joe Franchise 
6. Aldi Franchise
7. 7 eleven franchise 
8. Wawa Franchise
9. Dollar General Store
10. Five Below Franchise

Frequently Asked Questions (FAQs)

1. Does Target franchise?

It is not a franchise. However, it might prove to be highly profitable if in case it becomes one in the future. 

2. Can you make money owning a Target?

Yes, you will be able to make money upon owning a Target.

3. Is Target a franchise company or corporation?

No, Target does not have franchises. It operates under company-owned and operated stores.

 

4. How do Target franchises make money?

As part of its revenue strategy, Target generates income from the sale of goods, profit sharing from credit card transactions, and other revenue.