Metal Supermarkets Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$44,500
Investment required
$341,000 - $593,000
Royalty fee
3% - 6%

Metal Supermarkets: Your One-Stop Shop for Small-Quantity Metals Since 1985

Founded in 1985 by William H. Mair in Mississauga, Ontario, Metal Supermarkets identified a niche market by supplying small quantities of metal without minimum order requirements. This customer-centric approach has propelled the company to become the world's largest small-quantity metal supplier, serving over 250,000 customers across various industries.

Headquartered in Toronto, Ontario, Metal Supermarkets began franchising in 1987, expanding its footprint across Canada, the United States, and the United Kingdom. As of 2023, the company operates over 125 brick-and-mortar stores, offering a vast selection of metals—including steel, aluminum, copper, and brass—in various shapes and sizes, all cut to customer specifications.

What sets Metal Supermarkets apart is its commitment to speed, variety, and convenience. Customers benefit from immediate access to a wide range of metals, precise cutting services, and no minimum order size, making it an invaluable resource for businesses and individuals alike. This dedication to exceptional service and quality products has solidified Metal Supermarkets' reputation as a trusted partner in the metal supply industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Category of Investment Amount
Initial Franchise Fee $44,500
Equipment, Furnishings, and Fixtures $130,000 - $180,000
Permits, Licenses, and Professional Fees $3,000 - $10,000
Computer System, Software, and Telecommunication System $7,000 - $15,000
Insurance $4,000 - $7,000
Travel and Living Expenses While Training $5,000 - $10,000
Security Deposits, Utility Deposits $5,000 - $10,000
Leasehold Improvements $15,000 - $35,000
Signage $3,000 - $6,000
Opening Inventory $50,000 - $90,000
Initial Advertising $15,000 - $30,000
Real Estate Leasing $9,000 - $45,000
Additional Funds – 3 Months $50,000 - $110,000
TOTAL $340,500 - $592,500

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Number of units

2024
Franchised units

72

81

83

Company-owned units

3

3

2

Total units

75

84

85

Franchise Disclosure Document

Training

Metal Supermarkets provides comprehensive training for its franchisees to ensure they are well-prepared for operations. This training includes an Initial Training Program designed for the franchisee, the Operating Principal, and the Manager.

This program covers essential topics and must be completed to the franchisor's satisfaction. Additionally, they offer ongoing guidance through their Operations Manual, webinars, and consultations.

They also provide access to an online university featuring courses on customer service, brand meaning, equipment operation, and safety. Furthermore, periodic training programs and updates to operational procedures are made available to franchisees as deemed necessary by the franchisor.

Territory Protection

Metal Supermarkets provides its franchisees with a "Protected Area" to support business operations. This Protected Area is designated in the Franchise Agreement and ensures that no other Metal Supermarkets franchise or company-operated store will be established within it during the agreement's term.

The Protected Area is defined based on geographic and market criteria, such as a sufficient number of manufacturing facilities and potential customers. While the Protected Area offers a degree of exclusivity, Metal Supermarkets retains certain rights outside of this defined region.

The franchise agreement specifies that beyond the Protected Area, the franchisor may operate or establish other businesses, including competitive ones. This framework balances territorial protection for franchisees while allowing flexibility for the franchisor’s overall operations.

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