7 Eleven has been a convenience retailer for eight decades and a leader in the franchise industry for more than 40 years. Based in Dallas, Texas 7 Eleven operates franchises or licenses more than 7,500 7 Eleven stores in North America. Globally 7 Eleven operates franchises or licenses in excess of 33,700 stores in 17 countries and US territories.
7 Eleven is a worldwide technology enabled people driven custom service machine that understands the importance of neighborhood focus. The technology is designed to empower franchisees and help enhance their ability to make decisions based on what their store’s customer want and need.
The 7 Eleven Franchise System offers a world class opportunity to franchise and operate a neighborhood convenience store under the auspices of a world famous trademark 7 Eleven’s relationship with its franchisees is multi faceted where the company is not only a franchisor but also serves as landlord financing source record keeper and consultant to the franchisee. The Company takes an active role in the franchisee’s business because its success is predicted on their success.
7 Eleven provides many services that some franchisors either do not provide or, if available require additional fees. For example, the company
1) Obtains and bear the ongoing cost of the land, building and store equipment.
2) Pays water, sewer, gas and electric utilities.
3) Pays for any buildings rent and properly taxes
4) Provides financing for all store operating expenses.
5) Provides record keeping bill paying and payroll services for store operations.
6) Provides a support structure and a field consultant who meets weekly with the franchise to help provide the opportunity to maximize store performance and profitability.
Investment in technology:
The investment in technology and ordering systems leads the industry and the business model uses technology to put the customer at the center of every decision. The company has constructed innovative processes to understand and respond to the immediate needs of customers, and have invested hundreds of millions in the development of a proprietary Retail Information POS scanning system that can:
1) Enable the franchise to always have the products their customers want
2) Help simplify store operations
3) Facilitate staffing and delegation
Reasonable Financial investment:
With a moderate investment the franchise can have an opportunity to reap the benefits of the longevity stability and proven results of a global company.
Franchise fee – The franchisee pays a one time franchisee fee. The amount of this fee is based on the individual store’s gross profit, which may vary significantly depending on the area.
Gasoline Fee – If the store is a gasoline location, the franchise pas a on time gasoline fee in addition to the franchise fee. The amounts of this one time fee is based on the store’s annual total gallons sold for the poor year.
Initial cash payment – The franchise makes a one time cash payment in an amount equal to the cost of the store’s initial inventory supplies, business licenses, permits, bonds and cash register fund, as with the franchise fee, the amount of this cash payment may vary significantly depending on the area.
Good will Sales — A prospective Franchise may wish to purchase a current franchisee’s interest in his or her business, for which the prospective Franchisee must negotiate a price with the current franchise. This is called a premium or good will sale although no trademark goodwill is included. The goodwill price is paid to the current franchisee and is over and above the franchise fee and initial cash payment made to 7 Eleven.
Gross Profit Sharing Arrangement:
Once a franchisee is decided upon, the royalty is a portion of the store’s gross profits.
There are many other no additional cost advantages to joining the 7 Eleven Franchise System. Here are just a few:
Training – Prior to taking over the operation of the store, the company provides comprehensive training to the franchisee. It also provides ongoing training opportunities including in store computer based training programs to help the franchisee train their employees on virtually every aspect of the business.
Indemnification – It provides individual contractual indemnification to franchisees to help protect from many of the risks against which most small business persons must insure.
Franchise Voice – Through the presidents Leadership Council franchisee Leaders and 7 Eleven management work together to constantly improve the systems.