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For 85 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 | 12/31/2009 | 12/31/2010 | 12/31/2011 |
|---|---|---|---|
| Franchised | 4,685 | 5,067 | 5,437 |
| % Change | -- | 8.20% | 7.30% |
| Company-Owned | 1,185 | 1,075 | 1,063 |
| % Change | -- | -9.30% | -1.10% |
| Total | 5,870 | 6,142 | 6,501 |
| % Change | -- | 4.60% | 5.80% |
| Franchised as % of Total | 79.80% | 82.50% | 83.60% |
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. To the extent that you choose ti finance any of these expense items, your front-end investment could be substantially reduced. The below fees vary based upon the store selected.
| Item | Established Low Range | Established High Range |
|---|---|---|
| Initial Franchise Fee | $0 | $1,500,000 |
| Expenses While Training | $0 | $9,000 |
| Opening Inventory | $30,350 | $75,700 |
| Cash Register Fund | $100 | $10,000 |
| Store Supplies | $250 | $2,000 |
| Licenses and Permits | $100 | $8,500 |
| Additional Funds (3 Months) | $0 | $30,000 |
| Total Initial Investment | $30,800 | $1,635,200 |
Ongoing Expenses
Franchisees pay a monthly 7-Eleven charge in the amount of 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 five to seven weeks of initial training, with one week in the 7-Eleven Store Support Center in Dallas TX, followed by training in a designated 7-Eleven Training Store. 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 regularly 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 2012 FDD. The 2012 write-ups will be incorporated into the 2013 Edition of the Bond’s Top 100 Franchises publication.