Considering a vending machine franchise? You’re in the right place to learn more about franchise fees and industry best practices.
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.
We’ll teach you how to pick the perfect vending franchise (and avoid scams!) so that you can start making passive income ASAP.
Keep reading or click any of the links below to jump to the section that interests you most:
- What is a vending machine franchise?
- Learn About the Vending Machine Industry
- Healthy Vending Industry
- Snack Vending Franchises
- Water and Ice Vending Machine Franchise Opportunities
- Coffee Vending Machine Franchises
- Unique Vending Franchises
- 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. Owning and operating a vending machine business can be perfect for entrepreneurs who want their own business that generates passive income.
Watch our interview with Adam to learn about starting a vending business:
A vending machine franchise comes complete with:
- Standardized operating procedures that explain how to dispense items like food, drinks, and other consumer goods
- Vending machines
- Locations (potentially)
Pro Tip: Check out our vending machine business course to learn how Adam launched a nearly $1 million vending business.
Learn About the Vending Machine Industry
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.
Owning more machines that are closer together will also improve your profit margins. Adam told us:
Next, we’ll discuss why vending machine franchise opportunities are a great strategy 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 tested business model. A franchise is less risky than starting a business from scratch.
- Brand recognition: A franchise has an established name and logo that customers may already recognize.
- Training and support: Franchisors often provide some form of ongoing training and support for franchise owners.
- Supply chain: Franchises typically have existing deals with suppliers to get you better pricing on materials and inventory.
- Marketing: Franchisors offer advertising support in exchange for royalties and marketing fees.
- Passive income: Once your vending machines are set up, they make money with minimal direct involvement.
It’s important to conduct thorough research and do your due diligence before investing in any franchise opportunity to make sure it aligns with your goals and finances. This guide will help you get started.
What are the best vending machine franchises for small business owners?
Starting a vending machine business can be as simple as buying a low-cost franchise and working flexible hours. Next, we’ll discuss some of the best vending machine franchise opportunities.
Healthy Vending Industry
If you want to focus on a healthy vending concept, consider a healthy vending machine franchise from the list below.
#1. Healthier4U Vending
Healthier4U Vending was started to provide healthy food in vending machines. You can get into vending machine routes with approximately $50K.
• Founded in: 2011
• Franchising since: 2011
• Franchise units: 3K
• Initial investment: $30K to $160K
• Franchise fee: None
• Royalty: None
#2. HealthyYOU Vending
HealthyYOU Vending has helped more than 1,000 franchises that 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.
• Founded in: 1999
• Franchising since: 1999
• Franchise units: 1.8K
• Initial investment: $50K to $225K
• Franchise fee: None
• Royalty: None
Franchisees can access coaching, training, and a support center to help them turn a profit and manage the difference between wholesale and retail prices.
#3. Naturals2Go
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.
• Founded in: 1986
• Franchising since: 1987
• Franchises: 10K
• Initial investment: $50K to $250K
• Franchise fee: $26K
• Royalty: None
#4. Power Locker
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.
• Founded in: 2020
• Franchising since: 2020
• Franchise units: Undisclosed
• Initial investment: $30K to $150K
• Franchise fee: None
• Royalty: None
Snack Vending Franchises
These vending opportunities provide snacks that consumers are already familiar with and likely to get excited about.
#5. Reis & Irvy’s
Reis & Irvy’s offers a robotic frozen yogurt vending machine opportunity.
• Founded in: 1988
• Franchising since: 1988
• Franchise units: 5K
• Initial investment: $161K to $593.9K
• Franchise fee: $15K to $60K
• Royalty: 12%
Some of the key requirements for this franchise opportunity include a net worth of at least $250,000 and liquid assets of $120,000.
#6. U-Turn
U-Turn helps people start and grow their own snack vending businesses. They walk you through the entire process and provide in-person training. They also help you develop a business plan and find the best locations.
• Founded in: 1987
• Franchising since: 1987
• Franchise units: Undisclosed
• Initial investment: $20K
• Franchise fee: $20K
• Royalty fee: None
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.
#7. Twice the Ice
A Twice the Ice franchise is a great investment for those interested in starting their own ice and water vending enterprise. Your total investment will vary based on the type of machine you purchase.
• Founded in: 2003
• Franchising since: 2003
• Franchises: 3.3K
• Initial investment: $60K to $145K
• Franchise fee: $26K
• Royalty: None
#8. Ice House America (IceBorn)
Another option is to 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.
• Founded in: 2003
• Franchising since: 2012
• Franchise units: 4K
• Initial investment: $111.6K to $242.8K
• Franchise fee: $7K
• Royalty: 6%
#9. Pure Water Technology
Pure Water Technology was founded in 1996 because of a concern about deteriorating drinking water quality.
• Founded in: 1996
• Franchising since: 2014
• Franchise units: 500
• Initial investment: $50K to $100K
• Franchise fee: $2.5K
• Royalty: None
#10. Watermill Express
Lani and Don Dolifka started Watermill Express because they lived near a Superfund site that had unsafe drinking water. They created a purification system and encouraged reusable containers to help stay environmentally friendly. All you need is a plot of land to get started.
• Founded in: 1984
• Franchising since: 1994
• Franchise units: 1.3K
• Initial investment: $460K
• Franchise fee: $25K
• Royalty: Up to 7%
#11. Water Station Technology
Water Station Technology provides tech to make water vending more efficient. This is a chance to join the most innovative company in water vending.
• Founded in: 2010
• Franchising since: 2010
• Franchise units: 500
• Initial investment: $25K to $400K
• Franchise fee: $25K
• Royalty: Up to 7%
Coffee Vending Machine Franchises
#12. Xpresso Delight
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.
• Founded in: 2003
• Franchising since: 2004
• Franchise units: 180
• Initial investment: $67.9K to $115K
• Franchise fee: $37.5K
• Royalty: $0.11 to $0.15 per cup
Unique Vending Franchises
These vending machine franchises span industries from healthcare to clothes bins to CBD.
#13. Pharmabox
The automated pharmacy Pharmabox carries 140 of the most popular over-the-counter medications. They help with securing a vending machine location and even provide you with access to 13 categories of wellness products at wholesale pricing.
• Founded in: 2014
• Franchising since: 2018
• Franchise units: 47
• Initial investment: $195.7K to $216.8K
• Franchise fee: $36K
• Royalty: 6%
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.
#14. Clothes Bin
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.
• Founded in: 2014
• Franchising since: 2015
• Franchise units: 38
• Initial investment: $129K to $186K
• Franchise fee: $40K
• Royalty: $6 per bin, per week
#15. ATM Together
ATM Together is an ATM automation service that helps people find profitable locations. It provides cash and Bitcoin ATMs and connects you with the vendors you’ll need.
• Founded in: 2021
• Franchising since: 2021
• Franchise units: 26K
• Initial investment: $6.5K to $10K
• Franchise fee: None
• Royalty: Undisclosed
Listen to our interview with the owner below:
If this sounds like the right opportunity for you, check out our blog on how to start an ATM business.
#16. CBD Vending
CBD is a chemical extracted from cannabis that helps with anxiety, pain, insomnia, stress, and other ailments. CBD Vending claims franchises make up to $50K profit annually in residual income.
• Founded in: 2014
• Franchising since: 2014
• Franchise units: Undisclosed
• Initial investment: $55K
• Franchise fee: $55K
• Royalty: Undisclosed
Vending Machine Franchise FAQ
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 the following:
- Franchisor reputation: Check reviews online to see what you can learn from existing franchisees.
- Business model: With startup costs ranging from $6.5K to $500K and royalties as high as 12%, some are actually turnkey businesses rather than franchises.
- Startup costs: Higher startup costs normally mean it takes longer to recoup your initial investment.
- Business locations: A 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.
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:
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 your 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, and condition of the machine.
When you want to find a vending machine route for sale, you’ll normally pay more. A 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 and how to determine whether a vending machine franchise for sale seems legit. Scams are increasing along with people’s growing desire for passive income and the ability to control their own schedule.
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 the most?
