Franchise: 7-Eleven
Franchising Since: 1964
Headquarters: Dallas, Tex.
Estimated Number of Units: 51,000
About the Franchise
From its start in 1927, 7-Eleven has been the recognized leader in convenience retail, quickly growing into a dominant force in the marketplace that consumers and investors alike are eager to be a part of today. In its 86 years, 7-Eleven has evolved into one of the strongest known brands in the world. The company’s continued success comes in large part from their iconic products, which in turn has become an integral part of American culture.
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The 7-Eleven promise of great products and quality service mean nothing without the people who stand behind it. Today, 7-Eleven is a global icon, driving the brand forward through its dedicated franchise system. 7-Eleven franchisees are the voice of the brand, protecting a legacy and conveying its vision every day to millions of consumers worldwide.
Opening your own 7-Eleven franchise provides an opportunity to own your own business while following a proven, standardized startup process. If you have at least $100,000 to $150,000 in liquid funds and you are ready to move forward, keep reading.
Financial Assistance
7-Eleven offers financing for all or a portion of the franchise fee or down payment if a qualified applicant meets all loan qualifications and displays a financial need that, in the franchisor’s sole opinion, makes it difficult for the qualified applicant to pay all of the initial fees. This financing may not be offered to all applicants.
Term of Agreement and Renewal
The franchise term ends at the earlier of 10 years after the Effective Date of the franchise agreement or 30 days before the end of the lease of the real estate for the Store that was in effect on the Effective Date. One renewal term is available for a term equal to the number of years of the initial term in the then-current franchise agreement.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of 7-Eleven (2014). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a 7-Eleven franchise.
Initial Franchise Fee: $10,000 to $1,000,000
A one-time initial franchise fee is based on the store’s gross profit. Calculations range between 5% and on up to 30% of the gross profit dollar volume, over a period of any 12 rolling months. The initial franchise fee grants you the license to run a business under the 7-Eleven name.
Training Expenses: $0 to $9,000
The Training Program consists of approximately 300 hours of training at the Store Support Center located in Dallas, Tex. and in a 7-Eleven Training store. The franchisee must also have at least two individuals successfully complete the Training Program within a reasonable period of time after taking possession of the store.
Down Payment for Opening Inventory: $20,000
Additional Opening Inventory: $13,200 to $48,100
Cash Register Fund: $300 to $5,000
Store Supplies: $250 to $2,000
Licenses and Permits: $6,000 to $8,000
Real Estate and Equipment: Covered in “7-Eleven Charge” (see Other Fees)
Goodwill: Only applicable to incoming franchisee’s buying a current franchisee’s interest in a franchise
Additional Funds During First 3 Months: $0 to $30,000
ESTIMATED TOTAL: $39,750 to $1,122,100
These figures are estimates in setting up a 7-Eleven franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
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