7 Eleven Franchise : The best kind of neighbor
7 Eleven Franchise focus is convenience – but we’re also in the business of service. And that business extends beyond our stores, into the communities where customers live, work and play. As a Franchisee, getting to know your neighbors opens up all kinds of opportunities to serve, not only with a product selection tailored to their needs, but through programs and initiatives that can help enhance the safety, education and health of the entire neighborhood.
Year Business Began: 1927
Franchising Since: 1964
Headquarters: Irving, TexasEstimated
Number of Units: 62,105
7-Eleven, Inc. is the franchisor. Franchisees operate extended-hour retail convenience stores that emphasize convenience to the guest and provide a broad array of products, including many not traditionally available in convenience stores. These products include an assortment of high-quality fresh food, hot food and proprietary beverage offerings, and private brand items. The stores are generally open every day of the year (except, at the franchisee’s option, Christmas Day), usually 24 hours a day.
There are two types of franchises offered:A Traditional Individual 7-Eleven Store: The franchisor (7-Eleven) acquires the land, building and equipment for the store, and 7-Eleven or an affiliate leases the franchisee a fully equipped and stocked 7-Eleven store that is ready to operate. The granting of a franchise to a franchisee does not give the franchisee the right to operate any additional units. In the 7-Eleven franchise program for traditional individual 7-Eleven stores, only single unit franchises are offered. Business Conversion Program (BCP) franchise: The franchisee is responsible for acquiring the land and building for a store site and pays a different royalty than traditional franchisees. The franchisee of a BCP is also subject to a different disclosure document than the franchisee of a traditional store.
The Training Program consists of approximately 300 hours of training at the franchisor’s Store Support Center located in Irving, TX and in a 7-Eleven Training store. Successful completion of the Training Program does not guarantee that the franchisee will be approved as a franchisee. The franchisee must have at least two individuals successfully complete the Training Program within a reasonable period of time after taking possession of the store. The franchisor may offer additional training when deemed necessary based on changes in the 7-Eleven System. Franchisees agree to participate, and to require their employees to participate, in any additional training programs the franchisor makes available relating to the proper sale of age restricted products or the sale of other products that are regulated and which could lead to a violation of law if not properly sold, and any other training programs it designates as required. Franchisees and their employees must successfully complete all required additional training to the franchisor’s complete satisfaction as it may determine in its sole discretion.
The franchise agreement covers a single 7-Eleven store location. Franchisees will not receive any minimum territory. Franchisees will also not receive an exclusive territory.Obligations and Restrictions: Franchisees agree under the franchise agreement to devote their best efforts to the store and to actively and substantially participate in the actual operation of the franchise. Franchisees further agree to work full time in their store and supervise day-to-day operations, and make themselves available to meet with the franchisor at reasonable times, at the franchisor’s request, but in any event franchisees agree to meet with the franchisor at least once a week at their store during reasonable business hours. If franchisees are temporarily out of town or otherwise temporarily unavailable to meet with the franchisor at any time, they agree that the franchisor can meet with their employees to discuss the franchisee store’s business and take any action contemplated or allowed under the franchise agreement. If franchisees are married, we prefer that both the husband and wife sign the franchise agreement and actively participate in the franchise business. The store must carry all categories of inventory specified. Franchisees must carry, use and offer for sale only the inventory and other products that are consistent with the type, quantity, quality, and variety associated with the 7-Eleven Image and as the franchisor specifies in the franchise agreement. Franchisees must maintain in the store at all times a reasonable and representative quantity of all proprietary products listed in the franchise agreement or that the franchisor otherwise lists in writing. Franchisees must carry at the store a reasonable and representative quantity of all designated nationally or regionally advertised or promoted products. Franchisees must comply with the franchisor’s merchandising and shelf life requirements for fresh foods.
Term of Agreement and Renewal:
The franchise term ends at the earlier of 10 years after theEffective 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.Financial Assistance: The franchisor may finance the Down Payment and Initial Franchise Fee in certain situations. The franchisor also will establish and maintain an Open Account for the franchisee as part of the bookkeeping services provided (see FDD for further details). The franchisor does not offer financing arrangements from any other sources, and does not receive payments for the placement of any financing. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $0 $1,000,000 Training Expenses $0 $9,000 Down Payment for Opening Inventory $20,000 $20,000 Additional Opening Inventory $13,200 $48,100 Cash Register Fund $300 $5,000 Store Supplies $250 $2,000 Licenses and Permits $6,000 $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 $60,000 ESTIMATED TOTAL $39,750 $1,152,100 Other Fees Type of Fee Amount 7-Eleven Charge Variable percentage of Gross Profit. Advertising Fee The Advertising Fee is based on the Gross Profit of the store for the immediately preceding 12 months (Base Period Gross Profit):If Base Period Gross Profit exceeds $400,000,the Advertising Fee is 1.5% of Gross Profit;If Base Period Gross Profit is between $300,000 to $400,000, the Advertising Fee is calculated using the following formula: Base Period Gross Profit multiplied by 0.045, minus $12,000, divided by Base Period Gross Profit, multiplied by Gross Profit for the current Accounting Period; andIf Base Period Gross Profit is less than $300,000, 0.5% of Gross Profit Audits Varies. Interest Expense Varies depending on amount financed by franchisor. The annual percentage rate is currently 6.5% Indemnification Varies, depending on loss. Foodservice Operations Varies, depending on cure costs. Maintenance Varies, according to particular store and equipment. Premiums Varies, depending on premium received. Training Varies, depending on type of training offered and location. Inspection and Testing Cost of inspection, if applicable, and cost of test. Early Termination Fee $5,000 Service Fees Varies, depending on service provided. Mistery Shop Fees $6.50-$13 per shop. Close Out Fee $200 The above information has been taken from the FDD of 7 Eleven. Year of FDD: 2018
Disclaimer NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise–and receipt of which must be formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the “Industry” pages accessible from the drop-down menu above.
|Type of Fee||Amount|
|7-Eleven Charge||Variable percentage of Gross Profit.|
|Advertising Fee||The Advertising Fee is based on the Gross Profit of the store for the immediately preceding 12 months (Base Period Gross Profit):
If Base Period Gross Profit exceeds $400,000,the Advertising Fee is 1.5% of Gross Profit;
If Base Period Gross Profit is between $300,000 to $400,000, the Advertising Fee is calculated using the following formula: Base Period Gross Profit multiplied by 0.045, minus $12,000, divided by Base Period Gross Profit, multiplied by Gross Profit for the current Accounting Period; and
If Base Period Gross Profit is less than $300,000, 0.5% of Gross Profit
|Interest Expense||Varies depending on amount financed by franchisor. The annual percentage rate is currently 6.5%|
|Indemnification||Varies, depending on loss.|
|Foodservice Operations||Varies, depending on cure costs.|
|Maintenance||Varies, according to particular store and equipment.|
|Premiums||Varies, depending on premium received.|
|Training||Varies, depending on type of training offered and location.|
|Inspection and Testing||Cost of inspection, if applicable, and cost of test.|
|Early Termination Fee||$5,000|
|Service Fees||Varies, depending on service provided.|
|Mistery Shop Fees||$6.50-$13 per shop.|
|Close Out Fee||$200|
The above information has been taken from the FDD of 7 Eleven. Year of FDD: 2018
Franchise Direct’s Disclaimer
NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise–and receipt of which must be formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the “Industry” pages accessible from the drop-down menu above.