Food Basics is a Canadian supermarket chain created by A&P Canada, to compete with the successful "No Frills" warehouse style supermarket operated by Loblaws. Food Basics sells at lower cost due to low maintenance (no free bags, just free cardboard boxes). The chain operates by pushing a high volume of product out through lower prices to the consumer. Lower prices are obtained by keeping decor to a minimum and using a smaller number of staff; mostly part time employees.
In addition to the thousands of national brand products they offer, they also carry their very own Private Label products to bring great quality and even more savings all at the Best Prices Everyday!!! Those brands include Master Choice, Equality, Simply Kids, Great Basics Finds, and Basics For Less which are household products are designed for the customers who like to save even more money.
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Grocery Store Franchises
For more information on owning a Food Basics franchise, please visit the official Food Basics website here.
Franchising Tips and Facts
Franchising opportunities provide brand recognition, management and administrative systems, and a proven business model to small business owners. In theory, this should result in Food Basics franchises having higher success rates than non-franchise business opportunities. But in practice, franchises can and do fail.
How much can you make if you own a Food Basics Franchise? By law a franchise salesperson cannot provide you with an Earnings Claim, unless it is included in the disclosure document. There is no legal requirement that the franchisor must provide you with an Earnings Claim, however some franchisors do provide it. If the franchisor has chosen not to provide it, then it remains important to contact other franchisees listed in the disclosure document. Other Food Basics franchisees can answer many of your questions. Many franchisors will also require you to visit their headquarters before signing the agreement, so that you can both get to know each other better. This is known as Discovery Day.
Be sure to ask about marketing programs (if any) that are offered to Food Basics Franchisees. If your franchise contract requires you to make contributions for larger scale advertising and marketing programs, try to find out how the franchisees participate in decisions on the programs, campaigns and budget management. You want to make sure your money is going to good use, and it's being managed properly.
When considering whether or not to invest your money in a Food Basics franchise, be sure to ask if you will be required to purchase products and supplies from the parent company. If so, compare your cost to the local retail prices of the same goods. There have been instances in the franchise industry where the price from the franchise company for goods was higher than the price of the same goods in local retail stores. Selling anything under these conditions would make it quite difficult to keep your prices comparable with your competitors.
If you are interested in buying a Food Basics Franchise, then you will most likely be requested to complete a formal franchise application, which will involve typically a credit check and sometimes a background check. If you meet the franchisors guidelines, then to move forward then by law the franchisor is required to send or provide to you a disclosure document, known as a Uniform Franchise Offering Circular (UFOC). Read the UFOC carefully and have your lawyer go over it as well, since it will include a vast amount of information on the franchise such as: history of franchise and its key principals, financial statements, litigation, franchise openings/closings/terminations, franchisee contacts, franchise agreement, requirements, and more.
Please Note: Food Basics, and other
franchise opportunities, business opportunities,
businesses and franchises listed on this web site are not to be
considered as an "offering," suggestion or approval by
DailyFranchises.com. As always, we recommends seeking the advice of a lawyer, financial consultant or
accountant before purchasing a franchise or business opportunity.
