Is Aldi a Franchise (Not What You Think…)
Opening a franchise store for a retailer can be incredibly profitable – you already have brand recognition and trust, and many franchise opportunities come with the support you need to open your store and keep it running.
International grocery chain Aldi will represent a rare opportunity for franchisees, even in the crowded supermarket industry.
But is Aldi a franchise? Can you open your own Aldi store and become part of the Aldi family and brand? Here’s what you need to know.
Is Aldi a franchise?
Aldi is not a franchise and does not offer franchise opportunities. Aldi is a privately held company, which cannot be traded publicly except that the company does not operate franchises. Therefore, only its owners, the Albrecht family, can profit from Aldi’s successful business model.
If you’d like to learn more about the history of the Albrecht family, why you won’t be opening an Aldi franchise anytime soon, and which food chains offer franchising opportunities, read on for all the details!
Who owns Aldi?
Before discussing why Aldi is not a franchise, it is important to understand the history of the company as it has immediate implications.
Aldi was founded by the Albrecht family from Essen, Germany and is still owned by the company today.
In 1913, the Albrecht family matriarch opened a small grocery store; her two sons took over the business after World War II, when much of Germany was just beginning to rebuild.
Realizing that most people don’t have a lot of money to spend, Theo and Carl employ a simple, no-frills business model, which allows them to price their items as low as possible. Sound familiar?
Less than ten years later, they have opened more than 100 stores in Germany. By the 1960s, the Albrecht discount store had changed its name to Aldi (Al + Di), but the brothers disagreed over whether to sell cigarettes.
This led to the Aldi chains operating in the US today, Aldi Sud and Aldi Nord, which expanded into the US through a California grocery chain we call Trader Joe’s.
In the 1970s, Theo, who ran Aldi Nord, was kidnapped. He was released after his family paid a $3 million ransom, but the discord has brought the already private family closer together. Various sources refer to them as “recluses.”
The family almost never gives interviews, and until recent media scandals, almost nothing was known about the family or their fortune.
Why is Aldi not a franchise?
With this philosophy of chasing fame and even money — despite being worth billions, both sides of the family are largely known for being frugal and avoiding the spotlight — it’s not enough that Aldi Sud and Aldi Nord remain private companies No wonder.
Because of this, Aldi stores in the US cannot and will not be franchised (nor will they be publicly traded on the US stock exchange), unfortunately entrepreneurs who want a piece of Aldi’s profits will have to seek other franchises way of doing business, at least for the foreseeable future.
If you still want to be part of the Aldi business and think you have what it takes to run a store, you might consider applying for a management position. When you benefit from Aldi’s corporate office, you will receive excellent compensation and benefits.
What store franchise instead of Aldi?
While few grocery chains have the brand recognition of an Aldi franchise, there are other food market-type companies that offer franchise opportunities.
For example, 7-Eleven will get you started with a $31,000 upfront fee plus other opening costs. The company provides training, business consulting, administrative support, and even advertising.
Circle K is another food market/convenience store that offers franchise opportunities and a great support system to help entrepreneurs succeed.
Their website advertises the Circle K support team, proprietary products, architectural design, training, and brand awareness.
Which stores are publicly traded but not Aldi?
As Aldi demonstrates, the ultra-low-cost grocery store business model is lucrative, but if franchising isn’t your thing, you can still invest in similar publicly traded grocery store chains.
Liberatedstocktrader.com recommends investing in Aldi’s competitors such as Kroger, Walmart and Costco.
To find out more about Aldi you can check out our related posts on why Aldi is so cheap, whether you can buy Aldi shares, some interesting Aldi stats, the Aldi dress code and the lowdown on Aldi specials.
in conclusion
While Aldi is not a franchise business and does not offer these opportunities, due to its history as a private company, you don’t have to miss out on competing food market franchises or even stock investments.
