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Opening 7-Eleven Franchise in USA: Investments, area requirements, franchising process

By Spider Computech on
Logo of 7-Eleven: Franchise convenience store in USAWant to start a 7-Eleven franchise? In the United States, 7-Eleven needs no introduction. The convenience store chain brand operates mainly through franchise models, both in the US and international markets. Since 1927, 7-Eleven has led the convenience retail franchise industry in America, and owes much of its success to franchisees. Learn how to become a 7-Eleven franchisee, start-up costs, expected return on investments, 7-Eleven franchise area requirements, application process, existing store locations, and other necessary details. Keep reading!

Before we delve deeper into 7-Eleven franchise matters, let us take a quick look at the company fact sheet.


The 7-Eleven Franchise Brand: A quick synopsis

  • Chain of franchised convenience stores, operating internationally but chiefly in USA and Canada.
  • Headquartered at Dallas, Texas, the United States of America.
  • Founded by Joe Thompson, in 1927. The present CEO of 7-Eleven is Joseph DePinto.
  • The first 7-11 franchise store in USA was opened in 1964.
  • Minimum initial start-up cost for 7-Eleven franchise: About $50,000.

About the 7-Eleven Brand: A history of growth and recognition


Back in 1927, Joe C. Thompson, an employee of the Southland Ice Company, in Texas, founded the business as he started selling bread, milk, and eggs. Eventually, he purchased the Southland Ice Company, which later became Southland Corporation. Initially, Thompson's company was called Tote'm; the present nomenclature was acquired as the store started franchising and operated from 7 am to 11 pm. Nowadays, all 7-Eleven franchise convenience stores in America are open 24 hours a day; nevertheless, the company retained their brand name that gave them recognition and reputation.


Why take a 7‑Eleven franchise: Support and benefits?


Opening a 7‑Eleven franchise store in USA significantly differs from other popular brands. Apart from being probably the largest convenience retails chain of the country, 7‑Eleven offers several unique facilities and benefits to their partners. For example, their gross sales profit system is one of its kind and differs from most other franchise companies in USA that operate in the net sales model. Also, 7‑Eleven pays for your utilities like water, sewer, gas, and electricity. Any building rent and real estate tax involved will also be paid by 7‑Eleven. Franchisees will also avail financing for all expenses related to store operating. Moreover, 7‑Eleven will also help you with bookkeeping, bill paying, and payroll services. Especially, we think the support structure of 7‑Eleven franchise is unique because a business consultant from the company will meet you on a weekly basis and assist you in expanding your business and maximizing the performance of your store. We think these are unique support structures from 7‑Eleven: franchise companies mostly do not offer these services, or they charge for them.


Who can become a 7-Eleven franchisee: Eligibility criteria


7-Eleven requires that you must be a permanent resident of the United States, aged at least 21 years or more, having excellent credit, and no bankruptcy records in the last 7 years. Retail, management and/or customer service–related business experience within the United States is preferable, alongside several character traits ideal to succeed as a 7-Eleven franchisee.


Various 7-Eleven franchise business models: Single stores, multi-units, conversions


7-Eleven franchise review by American franchisee entrepreneurs7-Eleven offers versatility in the business structure. You may open a single store, a multi-unit franchise, or convert your existing convenience stores. Single stores are best for budding entrepreneurs, while retail giants with vast business experience already may take up several stores at a time or convert their existing business into a 7-Eleven store. Here we have given some details about each model.

Single store and multi-unit 7-Eleven franchises


If you are a new entrepreneur, the single store 7-Eleven franchise model will suit you best. These will also cost less. You may begin with a single 7-Eleven franchise outlet and then expand your business on the go by adding more outlets to your portfolio. Multi-unit franchise opportunity is more beneficial to people have vast experiences in American retail franchise industry as well as management. You also require the financial and managerial resources to operate 2 to 10 stores initially with further scopes to supersize and take up more stores.

Converting an existing store into a 7‑Eleven franchise outlet


If you are already running a convenience or liquor store, or own a gas station with extendable kiosks, service bay stations that can be modified, small grocery stores with ample space, or a new real estate, you may be eligible for 7-Eleven business conversion. Nevertheless, there are certain eligibility criteria for 7-Eleven franchisees to get their business converted. Your business must be in operation for at least one year in the concerned location, with verifiable sales and income history. Additionally, you must also possess necessary business licenses without any recent violations. In case of lease properties, 7-Eleven requires that a minimum of 10 years of lease should be there and you must produce an estoppel certificate by your landlord.

In case of converted businesses, 7-Eleven franchise area requirement is a minimum of 1,400 square feet of selling space; 1,800 square feet is preferable. So in general we may say that if you have around 1500 square feet business area, 7-Eleven is a good franchise option for you. Remember that all 7-Eleven stores in the United States operate for 24 hours, so your business must fulfil that criterion as well. 600 Ampere electrical connection and 3-phase service is required. In case of opening 7-Eleven franchise stores in gas stations, a signage on pole as well a tri-stripe are strongly recommended.

A note on 7-Eleven products and supplies


Depending on the demands in your locality, you may need to tailor the product assortment of your store. 7-Eleven will provide you with a list of recommended vendors offering a plethora of products; eighty-five percent of your merchandise has to be supplied by them. Additionally, you will also have to keep certain proprietary products including Slurpee®, Big Gulp®, and 7‑Eleven coffee.


7-Eleven Franchise Investments in USA: Start-up costs, franchise fees, royalty


Depending on the type of store you opt for, minimum estimated start-up cost for 7-Eleven franchise in USA will be about 50 thousand US dollars. The Entrepreneur mentioned that initial investment for a 7-Eleven franchise will be about $37,200 - $1,635,200. The one-time initial franchise fee of 7-Eleven typically ranges between $50,000 and $750,000, based on the gross profit. You will also have to make a downpayment for the inventory, supplies, business licenses, permits, and bonds which will be roughly $29,000. The term of a 7-Eleven franchise agreement is usually 10 years. For the veteran, franchise fee is waived by 10 to 20 percent.

The royalty of 7-Eleven largely differs from most franchise businesses in USA. Most franchises claim royalties on the gross sales, whereas the royalty of 7-Eleven franchise is on the gross profit of the store, that is, net sales minus expenditures like the wholesale cost of the merchandise. This minimizes your risk because the royalty is based on return on investments: 7-Eleven franchisee makes a profit and gives the management a share of it.

In case of businesses converted into 7-Eleven franchises, start-up investments will include an initial franchise fee of 25,000 USD in addition to an inventory down payment between 20 to 40 thousand US dollars. In all the business, the initial start-up cost will also include cash register funds to begin with.


7-Eleven Franchises for US Veterans: Special financing and reduced fees


Perhaps one of the best franchise opportunities for US veterans, 7-Eleven waives up to 20 percent off the initial franchise fee, subject to a maximum of $50,000, for those who served the armed forces. If found eligible, 7-Eleven veteran franchisees may also enjoy up to 65 percent financing through 7-Eleven. Franchise start-up support and special financing, alongside the strength of an internationally recognized brand, will help you succeed sooner. You are also benefited from the gross profit split policy of 7-Eleven: the franchisor makes money only when the franchisee does.


Available 7-Eleven franchise locations in the United States


At present, available 7-Eleven franchise locations in the United States are Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Maine, Michigan, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington, Wisconsin, and West Virginia.


How to apply for a 7-Eleven franchise in the United States?


If you qualify for a 7-Eleven franchise and are genuinely interested in it, let us see how to go ahead. The franchising process of 7-Eleven includes Initial application, Complete application, Sales manager interview, Qualification testing, Store selection, Business planning, Final interview, Agreement signing, and 7-11 franchise training.

Wondering how long will it take to become a 7-Eleven franchise? Well, all these steps will be carried out in roughly 2 to 4 months; upon completion, you may call yourself an official 7-Eleven franchisee. To begin, just log on to the official website: the franchise application form is available at apply [dot] 7-eleven [dot] com [slash] 7-eleven [slash] leadPersonalProfile [dot] jsp. Fill in the application form, furnish your personal information, and hit the Next button below: you will be guided through the 7-Eleven franchise application process.

References:
  • The official website of 7-Eleven franchise
  • "7-Eleven Inc.". Entrepreneur.




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