For
80 years, 7-Eleven has been both a leader and 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, and was recently
named the #1 franchise opportunity for 2008 by Entrepreneur magazine.Globally, 7-Eleven operates, franchises or
licenses more than 35,200 stores in 17 countries. This exposure has made
7-Eleven an industry giant and a widely recognized symbol 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, serving as a landlord,
financing source and record keeper to franchisees. 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
12/31/2006
12/31/2007
12/31/2008
Franchised
3650
4043
4330
% Change
--
10.8%
7.1%
Company-Owned
1723
1536
1387
% Change
--
-10.9%
-9.7%
Total
5373
5579
5717
% Change
--
3.8%
2.5%
Franchised as % of
Total
67.93%
72.47%
75.74%
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. The fee for a store with sales less than $200,000 in 12 months is
fixed at $10,000. Stores with gross profits of $200,001 to $250,000 have a fee
equal to 5% of the store’s historical gross profit, stores with profits between
$250,001 and $350,000 have a fee of 15%, stores with profits of $350,001 to
$450,000 have a fee of 20%, stores with profits between $450,001 and $800,000
have a fee of 25% and stores with profits exceeding $800,000 have a fee of
$30%. Fees for brand new store locations are determined by the average gross
profits of nearby locations. The fee can be reduced or waived depending on a
franchisee’s experience. Financing is also available.
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. To the extent
that you choose to finance any of these expense items, your front-end
investment could be substantially reduced.
Item
Established Low
Range
Established High
Range
Franchise
Fee
$0
$441,200
Initial
Gas Fee
$0
$40,000
Training
Expenses
$0
$3,400
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
Investment
$30,800
$605,300
On-going
Expenses
7-Eleven
franchisees pay on-going fees of 48% of gross profit or more that vary based on
total gross profit and advertising fees ranging from 0.5%-1.5% that vary based
on total gross profit.
What You Get—Training
and Support
Prior
to store opening, franchisees undergo four weeks of initial training in a
designated 7-Eleven Training Store, followed by two weeks of training support
in the franchisee’s 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 weekly with the franchisee to help maximize store performance and
profitability. 7-Eleven provides exceptional support services to its
franchisees, including record keeping, bill paying and payroll services for
store operations as well as financing for all normal store operating expenses.
