Franchising is a great business idea if you are someone who wants to run and operate a business that is pretty much guaranteed to succeed. You get built in brand recognition when you franchise with an established business. You also receive the support needed to open a new store and keep it running.
Aldi would be a great franchising opportunity for someone who was looking to open their own store with a company that had a great customer base already. However, you might be wondering if Aldi even offers franchising opportunities.
After some research, here is what we have found.
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Is Aldi A Franchise In 2023?
As of 2023, Aldi is not a franchise, and it does not look like the company will be franchising any time soon. Aldi is a privately held company, which means there are no franchising opportunities as of right now. This also means that Aldi is not publicly traded.
The only people who make a profit from Aldi stores are its owners. The owner of Aldi is the Albrecht family, who are from Germany.
To understand why the company is not a franchise, you will need to know more about the Albrecht family history and the company itself. You also might be curious about other chains that have franchising opportunities.
Keep reading below to find out more information on the topics above and more.
Who Owns Aldi?
Aldi is a German supermarket chain that was founded by and is still owned by the Albrecht family. They are from Essen, Germany, where Aldi also originated.
Aldi’s journey began with the matron of the Albrecht family back in 1913, when she opened a small store of her own. Decades later, after World War 2 ended, her two sons took over for her.
At this point in time, Germany was broken because of the war, and the country was slowly trying to rebuild itself. This led the sons, Theo and Karl, to create a business model that reflected Germany’s needs at the time. They made a barebones business model that would be able to sell items at low prices, so that German customers could afford the essential items they needed, such as great quality meats, fresh produce, and other food ingredients.
Less than a decade passed before there were more than 100 stores throughout Germany. The brothers were seeing immense success with their business already. In 1962, what was known as the Albrecht Discount Store became Aldi, which combined the “AL” from Albrecht and the “DI” from discount.
Unfortunately, the brothers had already split the company in half in 1960, due to a disagreement over the sales of cigarettes in their stores. This split created Aldi Nord, which has some stores in the United States through the well known Californian grocery chain Trader Joe’s, and Aldi Sud, which is responsible for all of Aldi’s stores in the United States.
Things took an odd and terrifying turn in the 1970s when Theo, head of Aldi Nord, was kidnapped. He was held for 17 days with his kidnappers who demanded 7 million German marks for his release, which was around $2 million in the United States at the time.
This kidnapping caused the family to reasonably close their ranks and keep business only within the family. They have been described as exhibiting reclusive behavior.
They allow almost no interviews with any members of the family. It was only until recent scandals and events happened that any knowledge of the family or its fortune came to light.
Why Isn’t Aldi A Franchise?
Due to the family’s notably reclusive state, they tend to want to stay out of the fame spotlight. On top of this, the Albrecht family is known for their frugality. Regardless of the amount of money they are worth, they tend to live frugal lives.
Both Aldi Sud and Aldi Nord are privately owned companies. This means neither company offers franchising opportunities or is publicly traded on the United States stock exchange market.
The fact that Aldi isn’t a franchise is also another reason behind their slow expansion across the U.S. There are people still wondering when Aldi will come to Colorado, Las Vegas, and multiple other locations. If Aldi was a franchise, then we’re sure they’d be dominating the U.S. market.
If you were hoping to franchise with Aldi, you will need to look for a franchising opportunity somewhere else. If your heart is set on running an Aldi store, then you could apply for a management position with the company. Aldi’s corporate positions are well known for their great pay rate and benefits packages.
What Companies Are Franchises Other Than Aldi?
You will find very few similar franchising opportunities that have fame similar to that of Aldi.
You could try to franchise with 7-Eleven. There is an up front fee of $31,000 plus the costs that come with opening the store. The franchise will grant you training, advising, support, and advertisements.
Another franchising option to try is with Circle K, which has a great support system in place for franchisees. When you open a Circle K franchise, you will have access to the Circle K support team, their products, construction design, training, and brand recognition.
What Other Stores Are Publicly Traded Other Than Aldi?
The low cost business model that Aldi has as a company is enviable and highly profitable. It would make sense that people would want to invest in a company with this type of business model.
Unfortunately, since Aldi is privately owned, there is no ability to invest in it. If you are not looking to franchise with another company other than Aldi, perhaps you might want to invest in a company other than Aldi.
You could try investing in some of Aldi’s competitors who are also highly successful. Some of these options include Kroger and Walmart.
Conclusion – Is Aldi A Chain Or Franchise?
Aldi is not a franchise and does not offer a Aldi franchise opportunity to those interested. The German supermarket chain is privately owned by the Albrecht family, who plan on keeping it that way for the foreseeable future.
You can try to franchise with other food-mart style companies that offer franchising opportunities, such as 7-Eleven or Circle K. You could also try investing in Aldi’s competitors, as being privately owned also means Aldi is not publicly traded, which means you can’t invest in Aldi through the stock exchange.
