7-Eleven franchise: is it for me?
The friend of my parents at last decided to franchise… And as he is rather ambitious person he wants to choose among the top and the most well-known. He looked around and found nothing better than 7-Eleven, Inc.
I was asked to collect as many as possible facts about this franchise (he is not so good in Internet). It was not difficult and I decided to publish this information in my blog too (to kill two birds with one stone).
Industry:
Food
Franchise package includes:
a) initial training to franchisees on how to operate and manage their stores; training includes practical part of 6 weeks working in one of the stores;
b) operational consulting, assistance and help in all business aspects; meetings every week;
c) franchisor develops the building, provides the store equipment and pays the utilities.
d) franchisor owns or leases the land;
e) franchisor provides credit resources on everyday basis if needed;
f) franchisor prepares all financial documents (income statements and balance sheets, financial activity summaries (e.g., daily sales receipts, purchases, cash expenditures) and even some marketing reports; everything operates under special information computer automated system.
Fee:
a) initial franchise fee to 7-Eleven (averaging approximately $70,000, depending on the store’s gross profit, but that may vary significantly depending upon the area);
b) a typical initial cash payment is about $83,000, which includes a down payment on the store’s opening inventory, supplies, business licenses, permits, bonds, cash register fund and the initial franchise fee.
Franchisee rights and responsibilities:
a) store business decisions are made by the franchisee himself but he can turn to franchisor for advice in any business sphere;
b) A 7-Eleven franchisee does not own the property, store or equipment, but leases or subleases it from 7-Eleven, Inc. as part of the franchise agreement.
So the program is OK especially for those who have poor economic background. You are not responsible for financial documentation, credits, real estate and equipment. But at the same time this franchise provides you too little freedom. Do you agree to obey all the time? If so, the business is right for you.