Market
- Franchising since: 1964
- Locations - U.S.: 3,300+
- Locations - Canada: 500+
- Locations - Foreign: 21,000+
- Company Owned: 2,100+
Costs & Fees
- Total Investment: $1M - $2M
- Franchise Fee: $70K
- Unencumbered Capital Required: $89,000+
Financial Requirements
- New Stores: $159,000 + (depending on location)
- Re-Sales: Negotiated with current franchisee, plus “goodwill” premium
Other Facts
- Financing: Third party.
- Royalty: Not available
- Training: 6 weeks
- Annual revenue: $36 billion (2003)
- Average revenue per store: $1,333,000+
Is 7-Eleven a Good Franchise Opportunity?
If you haven’t realized this already, 7-Eleven has more stores outside of North America (Mexico, Japan, Australia, Thailand – plus 13 other countries) than in the US and Canada combined. Without a doubt, they are a convenience store empire with a brand and trademark that leads the pack of multinational corporate conglomerates such as McDonald’s and Wal-Mart. What is exciting about 7-Eleven is that their franchise opportunities seem quite accessible and moderately affordable to the franchisee prospect with a net worth of at least $300K.
With an initial, average cash investment of $159,000 (which covers initial inventory, supplies, licences and other miscellaneous items), 7-Eleven will buy or lease the land where your store will be located and pay the utilities and finance your continuing operating expenses. In other words, you will lease or sublease your convenience store from 7-11: an initial $159K investment for a $1M - $2M total investment. Not bad at all.
But, such opportunities won’t be available to everyone. 7-Eleven seeks individuals with a strong sense of retailing and managerial experience. Expect to have a resume handy with an excellent set of credentials and references. The convenience store environment doesn’t come without its challenges – internal and external theft is common with the potential for robberies during the late hours. For young families, this may not be the best choice. The hours will be long and the management of at least 10 employees will require your leadership skills and problem-solving finesse. To succeed in this sector of the retail business, you have to be a people-person with a passion for customer service and satisfaction.
