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7-Eleven Franchise Review

7-Eleven Franchise Review

About.com Rating 5 Star Rating
User Rating 1 Star Rating (3 Reviews)

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7-Eleven is responsible for more 33,700 stores in 18 countries with sales of over $43 billion in 2005. 7-Eleven was the first 24/7 convenience store ever, and has been a convenience retailer for over 80 years, and a leader in the franchise industry for more than 40 years. This Dallas-based mogul is the world’s largest convenience store retailer, but prefers to market itself as a “neighborhood business” in keeping with its roots as the 1927 Southland Ice Company. Blocks of ice lead to milk, bread, and eggs sales after hours by this enterprising group. Supply soon met demand and an industry was born.

Background and Benefits

7-Eleven’s first-rate branding and commitment to the Franchisee is unprecedented in this category. 7-Eleven helps Franchisees tailor their businesses “to the individuality of their selected market bases and customer needs” and that means happier customers that come back. Services include obtaining and bearing the ongoing cost of the land, building and store equipment record keeping, bill paying and payroll services for store operations fees, and financing for all normal store operating expenses. They even pay water, sewer, gas and electric utilities. Where else can you get turn-key provisions in your own existing business?

How Much Does a 7-Eleven Franchise Cost?

We don’t know and we didn’t call. The website doesn’t tell you and all we could glean out of two hours of research was “it varies”, so if you’re serious about catching your share of those 6 million people shopping at 7-Eleven daily, pick up the phone and contact this winner. We do know that there is a one-time franchise fee “based on the individual stores gross profit.” There is also a Gasoline fee (if you offer fuel) and the “initial inventory-supplies-permits-bonds, and cash register fund fee”…we know, but don’t be afraid of what they are calling a “reasonable financial investment.” After all, with them paying for everything else, how bad could it be?

What We Like

We love that you can upgrade your existing business to this kind of blockbuster branding. 7-Eleven takes an active role in the Franchisee’s business because they know their success is based on yours. They could be accused of being too “hands-on” but we like a little hand holding and with 7-Eleven, success is just about guaranteed as long as you don’t go and set your own building on fire.

Pros

  • Ranking – Ranked No. 1 in its category from 2004 to 2008.
  • Name Recognition – The Company will lend its name to your existing store for a nominal fee.

Cons

  • None – The Varying fees promise to be reasonable and with all the other benefits it just all seems too good to be true.

7 Eleven Franchise Information

Business Established: 1927
Franchising Since: 1964
Start-up Cost: Varies
Total Investment: Varies

User Reviews

 1 out of 5
7-Eleven Franchise, Member bobbyb18

I own a 7-Eleven for three years now and would not consider a second one. I was lucky that I got my store under 120k including all the fees. I am also lucky that I was able to recover my fees before big RaceTrac came and another direct 7-Eleven competition. 7-Eleven franchise do not care about franchisees. This is a 50/50 split partnership of your gross profit therefore 7-Eleven will only look out for their best interest. If you pay more than $150k in the total fees to get this store, you are not making a wise move. There is no equity in this business, you will not be able to get anything if you decide to sale. This is a 24/7 business that means 24/7 headache. Headache from staffing to getting calls all the time. If you are looking to buy 50hr a week job that pays $50k a year with no benefits, this is a business for you. If you are planning become a millionaire, its not possible anymore. 7-Eleven used to be a good franchise when they did gas profit splits, maintenance costs were low, there weren't many 7-Elevens. 7-Eleven's current strategy is to put 7-Eleven in every corner. They are buying out exxon chains to tetco chains so if there is any gas station competition, most likely they will be 7-Eleven. 7-Eleven is the biggest competition. Right now there are eight 7-Eleven on the same road as my 7-Eleven in 5 miles distance. Also, if your daily sale is $3000 or less, you will not make money. You are better off opening a beer and wine store and set your own hours than this business.

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