Owning a convenience store franchise can certainly prove a lucrative investment at time. Nonetheless, considering that only a fraction of brands sell their franchises, it is quite difficult to get started in this industry.
Have you recently visited a conveniences store in your neighborhood that has piqued your interest in starting your own business by partnering with a renowned convenience store in the United States? Perhaps your extensive research on the Sheetz Franchise has landed you here.
In either case, you should consider reading our in-depth article on the Sheetz, which began as a simple store by purchasing a dairy unit from the founder’s father and grew into a chain that generated $7.2 billion in revenue in 2021 and is undoubtedly a prominent chain in the industry.
In this post, we’ll cover a detailed article on the Sheetz Franchise with its capital required, cost, profit, and step-by-step guidelines to get this franchise (if offered) – and answer some common questions about the chain.
- Brand: Sheetz convenience store
- Founded: 1952
- Founder: G. Robert “Bob” Sheetz
- Industry: Convenience store
- No. of outlet: 700+
- Area served: United States
- Franchise Fee: NA
- Royalty Fee: NA
- Model: Company-owned and operated
- Initial Investment: $1.5 million to $2 million
Table of Contents
Overview of Sheetz Franchise
Founded in 1952 by G. Robert “Bob” Sheetz, Sheetz, Inc. was established when the founder purchased one of his father’s five dairy stores located in Altoona.
Slowly and strategically, the chain grew into one of the most popular convenience stores and coffee shops, specializing in serving made-to-order foods, prepared foods, coffee, motor vehicle fuel, beer, wine, and more.
Apart from selling a variety of custom food and convenience store items, almost every Sheet’z location sells gasoline.
At present, Sheetz proudly maintains a robust presence across the country with over 700 convenience stores, strategically located in popular cities such as Maryland, Ohio, Virginia, and North Carolina, with plans for further expansion in the near future.
Interestingly, the chain operates the complete 700+ convenience stores under the company-owned and operated setup, where it takes care of entire business operations, including the inventory, customer experience, and many more.
Sheetz has also clearly stated that the chain has no plans to sell its franchises in the near future.
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The Journey of Sheetz
The foundation of Sheetz was laid when its founder, G. Robert “Bob” Sheetz, purchased a dairy store from his father. Later, Bob hired his brother Steve, who eventually became the general manager who took care of the store’s expansion across the country.
Under the Steve’s leadership, the chain grew at a rate of one store per year. Within a few years of its operations, Sheetz became a chain of 14 stores, some of which began selling gasoline at select locations.
Sheetz’s presence were increasing year-on-year and so its customer base. By the fiscal year, 2018-19, the chain registered an impressive sales of $7.5 billion and had over 600 stores nationwide.
With no plans to sell its franchises, Sheetz still dominate in the states like Pennsylvania, and poses tough competition to the renowned 7-eleven and Wawa franchise in the country.
Key Facts on Sheetz
|Convenience store, Gasoline,
and Fast food
|Founders Or Parent Company
|G. Robert “Bob” Sheetz
|Altoona, Pennsylvania, US
|Number of locations
|Company-owned and operated
|Range of Fast food, Gasoline,
and Convenience store
|$ 7.5 billion in FY 21
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Is Sheetz a Franchise?
Despite its extensive presence of over 700 convenience stores across the nation, Sheetz hasn’t embraced the franchising model. The chain continues to operate all its outlets and has no plans to sell franchises in the near future.
In fact, there are very few businesses that sell convenience store franchises. Since day one, Sheetz has refrained from selling its franchises to individuals or entrepreneurs; instead, it single-handedly expands, owns, and operates its vast retail network.
There could be multiple reasons for Sheetz not to opt for the franchising model, with the primary one being the immense capital required, training expenses, and the need to maintain consistent, high-quality customer experiences for its patrons.
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What’s special about the Sheetz Franchise?
Certainly, Sheetz competes with some of the most popular brands like 7-Eleven stores, Wawa, and many others.
Operating businesses in a highly competitive industry demands immense working capital, greater bulk purchasing power, and a strategy to expand its outlets into untapped markets while generating an overall positive cash flow for the company.
Irrefutably, Sheetz has got every piece to become one of the prominent brand in the industry.
Let’s look at some interesting points on Sheetz:
- Exceptional growth Journey:
- Since its inception, the chain has continued its growth journey, expanding to multiple locations in just a few years and consistently registering remarkable sales figures year after year.
- Competing with the prominent brands:
- Sheetz has managed to reach to a level where it doesn’t need to worry for the fresh startups, the chain currently competes with a few most popular convenience stores businesses in America.
- Franchise-free business:
- Yes, you correctly read it. Its franchise-free business model allowed the chain to understand the existing market potential, growing customer’s demand, and innovate the leading processes to provide an overall exemplary experiences to its customers.
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How much does a Sheetz Franchise Cost?
Certainly, Sheetz doesn’t sell its franchises, and interested prospects looking to start their venture by partnering with popular brands are advised to check out other options, 7-eleven, Speedway, Circle K, and GetGo.
Nevertheless, as per industry estimates, the initial startup cost to open a store like the Sheetz franchise will approximately range from $1 million to $3 million. Additionally, the required space to open a Sheetz convenience store will range from nearly 7000 square feet to over 10,000 feet.
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How much is the Sheetz franchise profit?
The chain has been operating over 700+ outlets across the nation, and since then they haven’t sell even a single outlets to any individuals and entrepreneurs.
With year-on-year outlet’s growth, Sheetz revenue figures also jumped significantly, resulting in a rapid surge in its customer base.
Sheetz undoubtedly possesses extensive experience in operating numerous stores (under company operations) across the country.
Furthermore, considering its diverse food options, ample parking space for truck stops, and gasoline offerings, Sheetz locations are expected to generate a healthy profit margin.
Additionally, according to the FinmodelSlab analysis, a convenience store located in a high-traffic area is anticipated to present a profit margin of nearly 5–7%.
What are the alternatives to Sheetz Franchise?
There isn’t much reason not to own a Sheetz convenience store, except that the opportunity has to be offered by the chain itself. Considering the fact that Sheetz convenience stores are company-owned and operated businesses, let’s check out some viable options in the field:
The chain is certainly one of the undisputed leaders in the industry, with over 78,029 stores spread across more than 17 countries. 7-Eleven entered the American market in 1920 and currently boasts an annual revenue of over $70 billion, which is interestingly ten times that of Sheetz.
7-Eleven is founded by Joe C. Thomas in Dallas, Texas, and operates nearly 1/13 of its total convenience stores. The chain has been selling its franchises since 1964, and the initial investment cost for opening a 7-Eleven outlet could range between $37,550 and $1,000,000.
Circle K Franchise
Circle K is another interesting option in the convenience store industry. The chain was established in 1951 by Fred Hervey in El Paso, Texas, and currently operates over 11,000 stores worldwide.
According to the report, Circle K convenience stores are primarily owned and operated by the company itself, totaling nearly 8,600 outlets in the United States.
The chain initiated its franchise operations in 1995, and since then, they have been offering a variety of packaged and frozen foods, coffee, gasoline (only at some locations), and other family necessities.
The initial investment required to buy a franchise of Circle K would amount to nearly $2 million, and the franchisees are also expected to pay a royalty fee of 4.3% and the marketing fee of 1.75%, which will be charged on a monthly basis.
|Type of cost
|Cost & other details
|Required Liquid capital
|Total initial investment
How to buy a Sheetz Franchise?
Unfortunately, you currently can’t buy a Sheetz convenience store franchise. Interested candidates looking for convenience stores are advised to check out our options here.
According to the company’s website, the chain has been a solely company-owned and operated entity that has single-handedly expanded its presence to over 700 stores across the country.
If you still want to check with the Sheetz team, you can visit its official website and navigate to its contact us page.
Final Takeaway: Conclusion
Undoubtedly, the Sheetz convenience store franchise seems like a lucrative business investment, and considering its experience and diverse range of cuisines and family-friendly offerings, Sheetz certainly stands out as a prominent brand in the industry.
The Bottom line:
It is also worthy to mention that since Sheetz’ establishment, the chain has continued to grow and expand its presence in other parts of the country under the company-owned and operated model.
The chances of Sheetz selling its franchises aren’t happening in the near future, and its owners have cleared up all rumors about it.
Therefore, candidates eager to start a Sheetz convenience store should either wait forever or check out the available opportunities listed on our platform.
Good Luck!! Happy Franchising!!
Want to explore more? Then check out below franchising opportunities.
Can you buy a Sheetz Franchise?
Ans: Unfortunately, Sheetz doesn’t sell its franchises, and its entire 700+ stores are solely owned and operated by the company itself. Additionally, the chain doesn’t even have plan to start its franchises in near future.
Are Sheetz Stores franchised?
Ans: No, they aren’t franchised. The chain doesn’t embrace the franchising model and it is not happening in near future.
How much does it cost to start a Sheetz Franchise?
Ans: The initial setup cost to start a store like Sheetz could range approximately $1.5 million to $2 million.