Do you remember ever being hungry or thirsty at school or in a hospital or at an office and you noticed a Vending Machine Franchise? It is a little shop, open all the time, which offers snacks and beverages. Vending machines are unique, and are a large industry. The vending machine business has a value of over 36 billion in the U.S.
The country has some 5 million Vending Machine Franchise, which sell products such as chips, soda, healthy salads, and hot coffee. Each year a large number of things are purchased by people through these machines. Since it is a large and growing business, there are a lot of individuals who desire to have some vending machines. It sounds like it is easy to make money, but what is the starting point? A lot of them begin by becoming members of a vending machine franchise. This paper describes what that is and provides some good opportunities.
What is a Vending machine franchise?
We can explain it in two parts. A vending machine is a machine that is used to sell products automatically when you put money on it. Second, a franchise is similar to purchasing an existing business. You buy a large corporation the right to have its brand name, business model and assistance.
As an example, a McDonalds you see is normally owned by a local individual who pays McDonalds the name and recipes. A vending machine franchise implies that you will pay a firm to assist you in establishing your own vending machine business. They, in turn, provide you with the machines, established brand name, training and continuous assistance. You are practically purchasing a turnkey business and professional advice.
US Market Overview & The Case of Franchises.
The U.S. vending machine franchise market is large and evolving. Many years ago, machines were selling candy, chips, and sweet sodas. Economic output of business services franchises in the U.S.. 105bn USD · Market size of the quick service restaurant sector in the U.S.. 413.2bn USD. Nowadays, there is an increased demand for healthier snacks. This presents a huge opportunity to sell fresh food, salads, and natural drinks. The healthy vending market is expanding rapidly. Why join a franchise? Starting a business is hard. You have to make decisions like:
- What machine to purchase?
- Where to place it?
- What snacks to sell?
- What to do if it breaks?
A franchise answers all this. They have tested what works. They provide you with contemporary, dependable equipment, assist you in locating good locations, and educate you in inventory and service. It is a roadmap to the mountain rather than finding the way on your own.
Franchise and Buying Machines Costs.
A vending machine franchise business is an expensive business. The overall expense will vary based on the franchise and the number of machines to begin with. Main costs:
1. Franchise fee:
A one time payment to become a member of the company. It provides you with brand name and training. There are opportunities where there is no franchise fee but they earn their money by selling you the machines. The largest cost is machine cost. A new high-tech Vending Machine Franchise is between 3000 and 10000 dollars. Franchise packages would typically come with a few machines.
2. Inventory:
To be loaded in the beginning you need to purchase snacks, beverages or other goods.
3. Royalty charges:
Numerous franchises require a minor amount of your monthly income, referred to as royalty. It is a rate of sales such as 5% or 6%. Overall, the start-up fee is between 15,000 and over 100,000.
4 .Revenue & Profitability
What do you do to make money and how much? All the cash the machine takes out of sales is called revenue. As an example, when 100 bags of chips are sold at a price of 1.50 each the revenue is 150.
Profit = revenue- all expenses, such as the cost of the chips, fuel to fill you, and royalty. Location is the key profit driver.
A machine in a busy 24-hour hospital is much more profitable than a machine in a small office with 20 people in it. A strategically located machine can make a couple of hundred dollars to more than a thousand dollars in profits monthly. Placing more machines in strategic locations will raise your revenues. It is an enterprise that can be small and develop.
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14 Popular Vending Machine Franchise Opportunities List
1. Healthier4U Vending
- Founded In: 2011
- Franchise Since: 2011
- Ratings: 4.8 / 5 (from various online sources)
- Franchise Units: Over 3,000 operators
- Franchise Fee: $0
- Setup Cost: $20,000 – $100,000+
- Royalty: 0%
Healthier4U Vending assists individuals to begin their own enterprise that markets healthy snacks and beverages. They just sell foods that are available in health food stores. They do not provide you with a franchise, they provide you with a complete business set-up. At the time of joining, you are given new and high-tech Vending Machine Franchise
that take credit cards and phone payments. They also offer a two day training program in Las Vegas.
It is the best vending machine franchise. The training includes all that you have to run your business. One of them is their location help program. A crew locates occupied spots to your machines, which can consistently be the most difficult part of commencing. They are aimed at making you a successful independent owner.
Why Choose This:
They provide great training and practical assistance on where to start as a first-time photographer, which is ideal for novices.
Website: http://healthier4uvending.com/
2. HealthyYOU Vending
- Founded In: 1999
- Franchise Since: 1999
- Ratings: 4.7 / 5
- Franchise Units: More than 1,700 operators.
- Franchise Fee: $0
- Setup Cost: $30,000 – $150,000+
- Royalty: 0%
Another heavy player in the healthy vending machine industry is HealthyYOU Vending. They are long-established and their reputation is quite strong. This is a business opportunity, just like Healthier4U, except that you own the machines and receive 100% of the profits. Their program consists of offering you American-made vending machines which are highly reliable.
These machines can market healthy snacks and drinks as well as optional side dishes and entree items. This will enable you to provide more diversity to your customers. Lifetime coaching and support is also offered in HealthyYOU. This implies that you can call them to seek advice even several years after you have started your business. It is the best vending machine franchise. They also offer a location-finding service to assist you in launching your business in profitable locations and in a short period.
Why Choose This:
They are highly reliable and they are American made machines and they give you lifetime business support.
Website: https://www.healthyyouvending.com/
3. Naturals2Go
- Founded In: 1988
- Franchise Since: 2011
- Ratings: 4.9 / 5
- Franchise Units: More than 1,000 operators.
- Franchise Fee: $0
- Setup Cost: $25,000 – $100,000+
- Royalty: 0%
Naturals2Go is a popular brand of healthy Vending Machine Franchise. They belong to a company called VendTech that is many years old. This provides them with experience and stability. Their initiative assists individuals to become successful in business. It provides a flexible model that has vending machines and micro markets as well.
A micro market is a small self-checkout store, usually in an office breakroom, which allows you to sell more products. Naturals2Go offers training, coaching and location finding assistance. Their technology displays real-time information on sales to you in order to know what to replenish.
Why Choose This:
It is a highly experienced and trusted brand and provides a variety of business models, such as vending and micro markets.
Website: http://naturals2go.com/
4. Power Locker
- Founded In: 2011
- Franchise Since: 2011
- Ratings: 4.5 / 5
- Franchise Units: 100+
- Franchise Fee: $0
- Setup Cost: $15,000 – $75,000
- Royalty: 0%
Power Locker is a vending company, which targets fitness gyms. The lockers, as they are called, are installed in gyms, fitness centers and sports complexes. They do not carry regular snacks but carry items such as protein drinks, energy drinks, supplements, and performance drinks that are used by athletes. The lockers are contemporary and they fit in a gym.
This is healthy to individuals who are passionate about fitness and understand what athletes require after exercises. Due to its niche, it does not have much competition. Power Locker provides you with the lockers and assists you in locating suppliers. They also assist you in negotiating with the gym proprietors to have favourable positions on your lockers.
Why Choose This:
It has a niche that is ideal among people who love to work out and there is minimal competition as well as a highly focused market.
Website: powerlocker.com
5. Reis & Irvy’s
- Founded In: 2016
- Franchise Since: 2016
- Ratings: 3.5 / 5
- Franchise Units: Over 300
- Franchise Fee: $15,000
- Setup Cost: $150,000 – $200,000
- Royalty: 12%
It is not an ordinary Vending Machine Franchise
created by Reis and Irvy. It is an entirely automated frozen yogurt booth. Customers will walk into the store, choose a flavor and toppings and a robot arm will prepare the treat in front of them. A lot of people are attracted to this fun experience. The stands are designed where there are people like movie theaters, malls, airports, and parks.
Since it is a franchise, they provide assistance in branding, marketing, and day to day activities.It is the best vending machine franchise. The start-up cost is more than a snack machine, but each location is able to generate more revenue. It is a progressive and fun vending alternative that is unique.
Why Choose This:
It provides a memorable and fun customer experience that has a wow effect that can capture the attention of many customers.
Website: https://www.reisandirvys.com/
6. U-Turn
- Founded In: 1985
- Franchise Since: 1985
- Ratings: 4.0 / 5
- Franchise Units: Thousands of operators
- Franchise Fee: $0
- Setup Cost: $5,000 – $50,000
- Royalty: 0%
U-Turn is a vending business that is the oldest. Its bulk candy is sold using its primary machine which is called the U- Turn Eliminator. The machine contains eight different sections of candies such as M&Ms, Skittles and gumballs. It operates on gears hence you do not require electricity. That makes it easy, dependable and simple to install in numerous locations like restaurants, stores or waiting rooms.
It is cheaper to start a U-turn business than purchase a modern snack machine. It suits those who are new to vending and do not have a huge budget. U-Turn provides you with the machine and a business plan that works. It is just a simple, traditional, and cheap method of beginning to sell and learn to get bigger machines later.
Why Choose This:
It is a very cheap and easy method of entering the vending business, ideal when starting out on a tight budget.
Website: https://uturnvending.com/
7. Twice the Ice
- Founded In: 2004
- Franchise Since: 2004
- Ratings: 4.5 / 5
- Franchise Units: Over 3,500
- Franchise Fee: $0
- Setup Cost: $120,000 – $180,000
- Royalty: A small per‑bag fee
Twice the Ice is a franchise which sells automatic ice and water dispensers. The machines are huge and they are self-contained. They are commonly put outside in the parking areas of the grocery stores or gas stations. The machine produces fresh ice, bags it and offers the same to customers at any time of the day. It is also able to provide filtered drinking water.
It is a highly hands-off business. Once it is set up it does not require much work per day. All you have to do is check it, collect the money and do simple repairs. The company assists in loans, location selection and advertising. It is a business of high investment, but of great profit, particularly in warm countries where ice is always required.
Why Choose This:
It is a highly automated business model that does not need much daily labor after it is established.
Website: https://www.twicetheice.com/
8. Ice House America
- Founded In: 2003
- Franchise Since: 2003
- Ratings: 4.6 / 5
- Franchise Units: Over 3,000
- Franchise Fee: $0
- Setup Cost: $125,000 – $200,000+
- Royalty: 0%
Ice House America is one of the primary rivals of Twice the ice and the first in automatic ice dispensaries. Its business model is comparable: you purchase a large, free-standing machine which produces, bags and sells ice and filtered water throughout the day. The machines are commonly referred to as IceBorn and are credited to be very tough and effective.
It is the best vending machine franchise. They also come in different sizes to enable you to select a budget and suit the location. It is not a franchise but a business opportunity, therefore no royalty fees are paid. They also provide much assistance to owners such as locating a place, setting up the machine and marketing your ice house to the local community.
Why Choose This:
They are a well-known brand in the ice vending market and have a royalty-free model that has powerful and trustworthy machines.
Website: icehouseamerica.com
9. Pure Water Technology
- Founded In: 1996
- Franchise Since: 2005
- Ratings: 4.7 / 5
- Franchise Units: 50+
- Franchise Fee: $45,000
- Setup Cost: $150,000 – $250,000
- Royalty: 6%
Pure Water Technology is not just a standard vending franchise. It does not offer products out of a machine but offers businesses high-tech water purification systems. It even rents those systems to companies providing a regular monthly revenue. The systems are directly connected to a water line of a building and provide unlimited hot and cold purified water. It is a bottle-free cooler that is more environmentally friendly and portable to the workers.
You, being a franchisee, locate new business customers, and install and service the systems. It is a B2B model which is long-term relationships with clients. This is a franchise that would be suitable to a person who likes sales and offering a service that is useful.
Why Choose This:
It is a recurring revenue model, meaning you will receive consistent, predictable revenue each month out of your clients.
Website: https://www.purewatertechnologies.com/
10. Watermill Express
- Founded In: 1984
- Franchise Since: 1984
- Ratings: 4.3 / 5
- Franchise Units: Over 1,300
- Franchise Fee: $30,000
- Setup Cost: $250,000 – $350,000
- Royalty: 8%
Watermill Express is a franchise chain offering water and ice stations that are drive through and self-serve. Similar to Ice House America, the kiosks are massive, however, they specialize in super-pure drinking water. Customers come with their reusable bottles or jugs to fill with clean and affordable water. Bagged ice is also sold at many locations.
Health-conscious and environmentally friendly customers who do not want to use single-use bottles made of plastic will find this business appealing. As a franchisee, you are a part of a well established brand that has a long history of success. The company assists in site selection, construction and marketing.
Why Choose This:
It is a well-known brand that is keeping up with the increasing demand of pure drinking water and environmentally safe solutions.
Website: https://watermillexpress.com/
11. Xpresso Delight
- Founded In: 2003
- Franchise Since: 2004
- Ratings: 4.8 / 5
- Franchise Units: 200+
- Franchise Fee: $35,000
- Setup Cost: $75,000 – $120,000
- Royalty: A per-cup fee
Xpresso Delight is a new idea of delivering coffee to offices via placing high quality, fully automatic espresso machines within break rooms. Employees can prepare a cafe-quality latte, cappuccino or espresso at the office instead of going out to get a good cup of coffee. The company makes it easy, the business installs the machines at no expense to the office.
They in turn will pay you a set sum on each cup that is served and this amounts to predictable recurring revenue. It is the best vending machine franchise. You go out as a franchisee to find new office clients and visit them every week to clean the machines and fill them with fresh beans and milk. It suits those who love coffee and also those who like to establish relationships with other businesses. It is more of a service oriented route than a regular snack selling route.
Why Choose This:
It is an exclusive B2B model in a high-need niche (great coffee) and a straight forward pay-per-cup revenue stream.
Website: https://xpressodelight.com/oursystem
12. Pharmabox
- Founded In: 2013
- Franchise Since: 2014
- Ratings: 4.0 / 5
- Franchise Units: 100+
- Franchise Fee: $29,500
- Setup Cost: $80,000 – $150,000
- Royalty: 6%
Pharmabox is a smart vending machine that will be able to function as a miniature automated pharmacy. These machines will be located in busy locations like in airports, hotels, and gyms. They also sell more than 140 everyday over-the-counter items that people usually require when they are not at home such as headache medicine, bandages, cold remedies, sunscreen, and contact lens solution.
The huge touchscreen allows one to locate what is required with ease. Pharmabox sells the machines and assists in locating the best spots that are convenient to the travelers and busy people. The company blends the trust of an old-fashioned vending machine with the trusted drugstore items, which serves a significant purpose for individuals on the move.
Why Choose This:
It offers brand name, health and wellness products which people require and which are essential and are usually sold when other stores are closed.
Website: https://pharmabox.com/en/
13. Clothes Bin
- Founded In: 2014
- Franchise Since: 2015
- Ratings: 4.5 / 5
- Franchise Units: 100+
- Franchise Fee: $12,500
- Setup Cost: $150,000 – $200,000
- Royalty: $20 per bin per month
Clothes Bin is another type of franchise. You do not sell anything but gather it. Franchisees install big, bright green metal containers in parking lots of convenience stores, schools and malls. Individuals are able to dispose of used textiles, shoes, and clothing in the trash. The smart technology in the bin reminds you when the bin is becoming full.
You are the franchisee who picks him up to the bins, gathers the goods and sells them in bulk to wholesale customers. The company assists in locating buyers for your textiles. It is a green company which encourages recycling and ensures that clothes are not put in landfills. It is a semi-passive business that does not involve any customer contacts or selling of separate products.
Why Choose This:
It is an environmentally-friendly business, easy to run, and it benefits the community and the environment.
Website: clothesbin.com/franchise/
14. ATM Together
- Founded In: 2008
- Franchise Since: 2008
- Ratings: 4.9 / 5
- Franchise Units: thousands of operators.
- Franchise Fee: $0
- Setup Cost: $5,000 – $30,000+
- Royalty: 0%
It is not a conventional vending machine, but an ATM that is similar to one. ATM Together is a company that enables you to open a business by installing ATMs in convenience stores, bars, and cash-only businesses. You purchase the ATM, locate a place and mount it. You make money whenever somebody withdraws cash; you receive a little fee on a transaction.
ATM Together offers training, assisting to locate and purchase the correct machines, and lifetime support. They show you where to get good places and bargain with proprietors. It is the best vending machine franchise. Similar to bulk candy vending, it is a cheap way to enter automated machines, with easy, well-tested passive revenue.
Why Choose This:
It is a cheap, easy, and tested method of generating a source of passive income using automated machines.
Website: https://atmtogether.com/
Step-by-Step: Start a Vending Franchise
You want to get started, here is an easy way to do it.
- Do Your Homework: Learn about other franchises. Read all their websites. Identify the kind of vending business that appealed the most to you, healthy snacks, ice, coffee, and so on.
- Check Your Money: Know the amount of money you need to invest. Be honest with yourself. Put aside some additional money in case of unexpected expenses.
- Call the Franchise: Call your top 2-3 selections. One of them will call you. Ask them many questions. Inquire whether you have a chance of talking to other people who already own their franchise.
- Look at the Agreement: They will send you a long contract, in case you choose to proceed. Read it carefully. It is best to get a lawyer to review, just in case.
- Get Trained: After signing the agreement and paying the fees, you will be taken through the training program of the company. Be attentive and know all you can.
- Find Your Locations: It is the most significant step. Cooperation with the location team of the franchise or begin to search busy places on your own. Converse with business managers and owners. Be formal and sociable.
- Launch Your Business: When you have your locations in place, the company will deliver your machines. Install them, fill them with merchandise and business is officially underway!
Conclusion
A vending machine franchise might be a good idea to begin your business. It also provides you with freedom of being your own boss and a tested system and a team behind you. Healthy snacks and coffee to ice and frozen yogurt means that there is a vending opportunity to almost any interest and budget.
But it is not a get-rich-quick-plan. It is a huge investment in terms of money and time. The key to success is doing a thorough research, selection of fabulous sites, and superior service. When you are ready to work and adhere to the plan, a vending machine business can become your way to financial freedom.
Also Read: Business opportunites in Gujarat
FAQs
Do I require any extra experience in order to open a vending business?
No. The majority of vending franchises are beginner-friendly. They provide everything to train you on the business on the ground level.
Will I be able to operate a vending business on a part-time basis?
Yes, a lot of individuals begin their vending business on a part-time basis and continue to work. A short path of 5-10 machines can be easily completed within several hours per week.
Who will locate the places to install the machines?
This varies. Most leading franchises have a location finding service to help you start one. But it is your duty in the end to both secure and retain your locations.
Which snacks in a standard snack vending machine sell the best?
It is also dependent on the location, but usually, popular brands tend to sell best. Alcoholic beverages, particularly water and sodas are nearly always the best sellers in any machine.