Considering a vending machine franchise? You need to know the most lucrative program for your target market plus inside info on franchise fees and more.
We talked to Adam Hill, who started his own company, Hill Vending, which makes nearly $1M in revenue per year. He shared information on how to buy a vending business for sale. We also researched the vending machine franchise cost for some of the most popular vending machines and share all the info here.
We teach you how to pick the perfect vending franchise (and avoid scams!) so you can start making passive income ASAP.
We’ll help you understand each of the following topics. Read it all or click a link to jump to the info that interests you most.
- What is a vending machine franchise?
- Vending Machine Industry Outlook (2023)
- Benefits of buying a vending machine business
- What are the best vending machine franchises for small business owners?
- Healthy Vending Industry
- Snack Vending Franchises
- Water and Ice Vending Machine Franchise Opportunities
- Coffee Vending Machine Franchise
- Unique Vending Franchises
- How to choose the best vending machine franchise opportunities
- Vending Machine Franchise FAQ
- Did you find a vending machine franchise for sale?
What is a vending machine franchise?
A vending machine franchise requires minimal investment and staff, but owning and operating a vending machine business can be perfect for entrepreneurs who want their own business that generates passive income.
A vending machine franchise comes complete with
- Standardized operating procedures that inform how you should dispense items like food, drinks, and other consumer goods
- Machines
- And potentially even locations
Watch our interview with Adam to learn about starting a vending business.
Pro Tip: Check out the vending machine business course to learn how Adam launched a nearly $1 million vending business.
Vending Machine Industry Outlook (2023)
Adam told us:
As a vending machine industry business, expect 30% of your revenue to go toward wages and profits. The other 70% will go to product costs and taxes.
The more machines you own and how close they are will impact your profit margins (closer machines mean routes that are more efficient).
Next, we’ll discuss why vending machine franchise opportunities are a great strategy to use to increase your business success.
Benefits of buying a vending machine business
Buying a vending machine franchise opportunity is a great option for a small business owner looking for new business opportunities. The benefits of opening a vending machine franchise include:
- Proven Business Model: Vending machine franchises come with a well-established and tested business model, reducing the risk associated with starting a business from scratch.
- Brand Recognition: Joining a reputable franchise offers the benefit of leveraging an established brand name and logo, which can attract customers and build trust.
- Training and Support: Franchise owners often receive comprehensive training and ongoing support from the franchisor, helping them navigate challenges and operate the business successfully.
- Access to Products: Franchises often have negotiated deals with suppliers, granting franchisees access to a wide range of products at competitive prices.
- Economies of Scale: Being part of a franchise network allows franchisees to benefit from economies of scale, which can lead to reduced costs for equipment, supplies, and advertising.
- Marketing Assistance: Franchisors usually provide marketing and advertising support at both the national and local levels, aiding in attracting customers and increasing sales.
- Streamlined Operations: Franchises typically provide standardized operating procedures, simplifying business management and ensuring consistency across locations.
- Minimal Experience Required: Vending machine franchises are suitable for individuals with varying levels of business experience, making entrepreneurship accessible to a wider range of people.
- Flexibility: Running a vending machine business can offer flexibility in terms of working hours and location, allowing franchisees to adapt their schedule to their personal preferences.
- Potential for Passive Income: Once set up, vending machines can generate income with limited direct involvement, making it an option for those seeking supplementary or passive income streams.
- Diverse Locations: Vending machines can be placed in various locations, including offices, schools, hospitals, and public spaces, diversifying potential customer bases.
- Low Workforce Requirements: Operating vending machines typically requires minimal staffing, reducing labor-related costs and complexities.
- Scalability: As the business grows, franchisees can expand their vending machine network to increase revenue and market reach.
It’s important to conduct thorough research and due diligence before investing in any franchise opportunity to ensure it aligns with your goals, skills, and financial capacity. This guide will help you get started.
🚨 Warning About Vending Systems 🚨
While doing research about vending machine franchises, I came across numerous franchise opportunities whose validity I couldn’t confirm. Unfortunately, the vending industry is ripe with scams.
Make sure to do thorough research on any vending business before contacting them. Some red flags include:
- Not including the company name on franchise listing sites
- Lack of a legitimate website
- Email address using any free email account
What are the best vending machine franchises for small business owners?
A vending machine business is a low-cost franchise with flexible hours. Find some of the best vending machine franchise opportunities.
Healthy Vending Industry
If you want to enter the healthy vending concept, consider a healthy vending machine franchise from the list below:
- Healthier4U Vending
- HealthyYOU Vending
- Naturals2Go
- Power Locker
Get ready to start a successful healthy vending business and help health-conscious consumers snack better.
Healthier4U Vending
• Founded in: 2011
• Franchising since: 2011
• Franchise units: 3,000
• Initial investment: $30K-$160K
• Franchise Fee: None
• Royalty Fees: None
Healthier4U Vending was started to provide healthy food in vending machines. You can get into vending machine routes with approximately $50K. Learn more about how to buy a vending machine route from Healthier4U.
HealthyYOU Vending
• Founded in: 1999
• Franchising since: 1999
• Franchise units: 1,800
• Initial investment: $50K-$225K
• Franchise Fee: None
• Royalty Fees: None
HealthyYOU Vending has helped more than 1,000 franchises vend healthy food and medicines in offices, gyms, and hotels. You can add a wellness (medicine) vending machine to the unit to expand your offerings in a HealthyYOU Vending machine.
Franchisees will get onboarding training, coaching, and a support center to help them make a great profit on the difference between wholesale and retail prices.
Naturals2Go
• Founded in: 1986
• Franchising since: 1987
• Franchises: 10,000
• Initial investment: $50K-$250K
• Franchise Fee: $26K
• Royalty Fees: None
Naturals2Go has been a successful vending machine company since 1987. The company helps you find places for high-tech vending machines serving healthy snacks and drinks.
Power Locker
• Founded in: 2020
• Franchising since: 2020
• Franchise units: Undisclosed
• Initial investment: $30K to $150K
• Franchise Fee: None
• Royalty Fees: None
Power Locker focuses on serving convenient healthy foods through their healthy vending machines. They partner with unique drink and snack brands to deliver healthy food to busy people on the go.
Snack Vending Franchises
These vending opportunities focus on providing snacks consumers are familiar with and will get excited about.
Reis & Irvy’s
• Founded in: 1988
• Franchising since: 1988
• Franchise units: 5,000
• Initial investment: $160,950 to $593,900
• Franchise Fee: $15,000 to $60,000
• Royalty Fees: 12%
Reis & Irvy’s offers a robotic frozen yogurt vending machine opportunity. For a franchise fee of $15,000 to $60,000 and a royalty fee of 12%, you can become a part of this rapidly growing industry.
The total investment for a Reis & Irvy’s franchise is $160,950 to $593,900. Some of the key requirements for this franchise opportunity include a net worth of at least $250,000 and liquid assets of $120,000.
UTurn
• Founded in: 1987
• Franchising since: 1987
• Franchise units: Undisclosed
• Initial investment: $20,000
• Franchise Fee: $20,000
• Royalty Fees: N/A
UTurn helps people start and grow their own snack vending businesses. They walk you through the entire process, starting with in-person training, providing a business plan, and helping you find the best locations.
Water and Ice Vending Machine Franchise Opportunities
The growing ice vending niche has the potential to make real money, but the costs to start are higher than many of the other companies on this list. That said, if you want to vend water or ice, check out:
- Twice the Ice
- Ice House America (IceBorn)
- Pure Water Technology
- Watermill Express
- Water Station Technology
Twice the Ice
• Founded in: 2003
• Franchising since: 2003
• Franchises: 3,300
• Initial investment: $60K to $145K
• Franchise Fee: $26K
• Royalty Fees: None
The Twice the Ice opportunity is a great investment for those interested in starting their own ice and water vending enterprise. Your total investment will range from $60,000 to $135,000+, depending on the type of machine you purchase.
Ice House America (IceBorn)
• Founded in: 2003
• Franchising since: 2012
• Franchise units: 4,000
• Initial investment: $111,550-$242,845
• Franchise Fee: $7,000
• Royalty Fees: 6%
Provide water and ice vending through Ice House America. Their machines run 24/7 without employees. Get unlimited earning potential when you buy a vending machine business through Ice House.
Pure Water Technology
• Founded in: 1996
• Franchising since: 2014
• Franchise units: 500
• Initial investment: $50K-$100K
• Franchise Fee: $2,500
• Royalty Fees: None
Pure Water Technology was founded in 1996 because of a concern about deteriorating drinking water quality. Today it has more than 500 franchise units.
Watermill Express
• Founded in: 1984
• Franchising since: 1994
• Franchise units: 1,301
• Initial investment: $460K
• Franchise Fee: $25K
• Royalty Fees: Up to 7%
Lani and Don Dolifka started Watermill Express because they lived near a Superfund that had unsafe drinking water. They created a purification system and encouraged reusable containers to help stay environmentally friendly.
Now, there are over 1,300 locations. All you need is a plot of land to get started.
Water Station Technology
• Founded in: 2010
• Franchising since: 2010
• Franchise units: 500
• Initial investment: $25K-$400K
• Franchise Fee: $25K
• Royalty Fees: Up to 7%
Water Station Technology focuses on providing tech to make water vending more efficient. Join the most innovative company in water vending.
Coffee Vending Machine Franchise
Xpresso Delight
• Founded in: 2003
• Franchising since: 2004
• Franchise units: 180
• Initial investment: $$67,900-$115,000
• Franchise Fee: $37,500
• Royalty Fees: $0.11-$0.15 per cup
Xpresso Delight was started in 2004 to provide coffee vending in the U.S., Australia, and New Zealand. These vending solutions target office break rooms and charge businesses based on per-cup pricing. Learn more about the Xpresso Delight franchising.
Unique Vending Franchises
These vending machine franchises span industries from healthcare to clothes bins and CBD.
Pharmabox
• Founded in: 2014
• Franchising since: 2018
• Franchise units: 47
• Initial investment: $195,700-$216,800
• Franchise Fee: $36K
• Royalty Fees: 6%
The automated pharmacy, Pharmabox carries 140 of the top-selling over-the-counter (OTC) medications. They help with securing a vending machine location and even provide the products to you at wholesale pricing.
You’ll get access to:
- Allergy and cold medicines
- Batteries
- Cleansers
- Contraceptives
- Digestive and stomach medications
- Facial products
- Hair care
- Male and female health products
- Moisturizers
- Pediatric medication
- Soap
- Suntan lotion
- Vitamins
The vending machine routes for sale are on the pricier side of vending machine franchises, but any retail store or pharmacy that doesn’t have one outside needs a Pharmabox franchise.
Clothes Bin
• Founded in: 2014
• Franchising since: 2015
• Franchise units: 38
• Initial investment: $129K-$186K
• Franchise Fee: $40,000
• Royalty Fees: $6 per bin, per week
Clothes Bin franchises place clothing bins on site that encourage people to recycle their clothing. When the bin is full, you pick it up and ship it to their sorters, who sell the clothes or repurpose them. Learn more about Clothes Bin.
ATM Together
• Founded in: 2021
• Franchising since: 2021
• Franchise units: 2,600
• Initial investment: $6.5K-$10K
• Franchise Fee: N/A
• Royalty Fees: Not Disclosed
ATM Together is an ATM automation service that helps people find profitable locations, provides cash and Bitcoin ATMs, and connects you with the vendors you need for ATMs. Check out our blog and interview with the owner below.
Other ATM franchises to consider include:
CBD Vending
• Founded in: 2014
• Franchising since: 2014
• Franchise units: Undisclosed
• Initial investment: $55K
• Franchise Fee: $55K
• Royalty Fees: Undisclosed
CBD is a chemical extracted from cannabis that helps with anxiety, pain relief, sleep, stress, and other ailments. CBD Vending claims franchises make up to $50K profit annually in residual income.
How to choose the best vending machine franchise opportunities
Before you go into business with any vending machine franchise opportunity, you’ll want to verify:
- Franchisor reputation
- Business model
- Startup costs
- Business locations
Franchisor reputation
Check reviews, talk to other franchisees, and make sure the vending machine franchise has a good reputation. You don’t want to spend a lot of money on vending machine locations for sale just to find out there’s no traffic at the location.
Business model
Franchising is a great business model, but the processes set forth by the franchisor impact franchisee success. Ask for average earning documentation and franchisee satisfaction statistics. Any reputable franchise should have these in their franchise disclosure documents. Learn how to buy a franchise.
Startup costs
A successful vending machine business will normally make enough that every machine can buy another machine each year. If the franchise model is expensive enough that you can’t buy at least another franchise vending machine annually, you’ll have a hard time maximizing profits.
Good location
The vending machine’s location will impact your success. Look for a location with high visibility and good foot traffic. Learn how to place a vending machine.
Vending Machine Franchise FAQ
How much does it cost to open a vending machine franchise?
Opening a franchise will cost different amounts based on the franchisor you choose and your location. Some franchises require an investment of only $7K, while others may cost more than $250K. Ask the franchisor about royalty fees and advertising expenses to accurately estimate your startup costs and potential profits.
Is a vending machine franchise profitable?
When you buy a vending machine franchise, you should be looking for ones that return your investment capital in a year. Adam Hill told us that you should make at least 50 cents profit on each item sold and that he aims to make at least $2,000 monthly from each vending machine.
How to start a vending machine business
You should follow the steps below to start a vending company:
- Understand the vending industry
- Research vending machine prices
- Write a vending machine business plan
- Form your vending machine business
- Buy a vending machine
- Get products for your vending machine
- Find a location for your vending machine
- Store additional products for the vending machines business
- Maintain your vending machine
- Collect money and refill vending machines
Check out our vending machine business course for more information.
How much does a vending machine cost?
You can buy vending machines for between $50 and $20,000 depending on the type of vending machine, technology integration, and condition of the machine.
When you want to find a vending machine route for sale, you’ll normally pay more because the vending machine business for sale already has revenue, which makes it more valuable.
How much does it cost to start a vending machine business?
To start a vending machine business, you should expect to pay at least $3,000, which includes:
- The cost of the machines
- Business formation
- Business licenses
- Products
- Transportation costs
- Accounting software
The more machines you buy, the more you should expect to spend. Depending on your business goals and the business opportunity, you may spend up to $250K when buying vending machine routes.
Did you find a vending machine franchise for sale?
We’ve covered where to buy vending machine franchise options. You should consider whether a vending machine franchise for sale seems legit. Scams are increasing along with people’s growing awareness of passive income and ability to control their own schedules.
Despite the hustlers trying to pull one over on people, vending machines can be a profitable source of passive income.
What vending machine business interests you?