7-Eleven
Click
here to link to 7-Eleven's detailed company profile
For 84 years, 7-Eleven has been both a leader and an innovator in the convenience store industry. Today, as the world’s largest convenience retailer with a widely recognized brand name, 7-Eleven continues to thrive. 7-Eleven operates, franchises and licenses more than 40,000 stores in 17 countries. This exposure has made 7-Eleven an industry giant and an unshakable statue of fast, reliable and convenient service while its focus on community and people has preserved its reputation as "the friendly little store that’s just around the corner."
7-Eleven has a multi-faceted relationship with franchisees: it serves as landlord, financing source and record-keeper. 7-Eleven takes an active role in the franchisee’s business, investing directly in their success in an effort to ensure a profitable and beneficial relationship between the franchisee and 7-Eleven.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
4,330 |
4,685 |
5,047 |
| | % Change | -- |
8.2% |
7.7% |
| | Company-Owned |
1,387 |
1,185 |
1,075 |
| | % Change | -- |
-14.6% |
-9.3% |
| | Total |
5,717 |
5,870 |
6,122 |
| | % Change | -- |
2.7% |
4.3% |
| | Franchised as % of Total |
75.7% |
79.8% |
82.4% |
Investment Required
The franchise fee for a 7-Eleven store depends on the franchised store’s gross profits for the past year; i.e. the fee is higher for locations that generate more revenue. Fees for brand new store locations are determined by the average combined gross profits of nearby locations. The fee can be reduced or waived depending on a franchisee’s experience. Financing is available. Veterans receive a 10% discount on the franchise fee for their first 7-Eleven store.
7-Eleven provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. The below fees vary based upon the store selected.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $0 |
$441,400 |
| | Initial Gas Fee | $0 | $40,000 |
| |
Expenses While Training | $0 |
$9,000 |
| | Initial Inventory | $30,350 | $75,700 |
| | Cash Register Fund | $100 | $10,000 |
| | Store Supplies | $250 | $2,000 |
| | Licenses and Permits | $100 | $3,000 |
| |
Additional Funds (3 Months) | $0 | $30,000 |
| |
Total Initial Investment | $30,800 |
$611,100 |
Ongoing Expenses
7-Eleven franchisees pay ongoing fees which are the monthly 7-Eleven charge. The amount is a variable percentage of the store’s gross profit for the month. There is also an advertising fee ranging from 0.5% to 1.5% that varies based on total gross profit.
What You Get—Training and Support
Prior to store opening, franchisees undergo six weeks of initial training with one week in the 7-Eleven Store Support Center in Dallas TX, and five weeks in a designated 7-Eleven Training Store. The initial training covers the 7-Eleven concept, basic store operations, computer-based training, POS training and store changeover support training. 7-Eleven also provides ongoing training opportunities, including in-store computer-based training programs for employees.
7-Eleven continues to support franchisees after store opening with a field consultant who meets with the franchisee on a weekly basis to help maximize store performance and profitability. 7-Eleven provides exceptional support services to its franchisees, including record keeping, bill paying, payroll services for store operations, as well as financing for all normal store operating expenses.
Territory
7-Eleven does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
|
