About 7-Eleven
Americans like quickness and convenience. Stores like Arco, Circle K, and 7‑Eleven help cater to fast and easy.
To start a business in the US, entrepreneurs look for the most profitable business opportunities. Fortunately, there are profitable franchises opportunities to tap in.
No matter where you are in the United States, there is a high probability that you have seen a 7-Eleven convenience store. This American multinational chain has satisfied franchise owners for more than 73 years with its sustainable, profitable, and growing business model.
Fransmart is the leading source of updated and detailed information on franchising. We provide potential franchisees with the most up-to-date information on franchising, how to start a franchise, franchise fees, and much more. This post is a complete guide about buying a 7-Eleven franchise taken from their FDD (franchise disclosure document).
Highlights
- More than 70,000 locations worldwide, with more than 9,000 operating in North America. 8,000 are franchisee-owned and operated.
- With over $41 billion in market cap, 7-Eleven has remained one of the top convenience stores in the country.
- 7‑Eleven is a pioneer in innovation. They were the first to offer to-go coffee cups, self-serve soda fountains, 24/7 operations, etc.
- Some of its most popular menu items: are the BrainFreeze drink, the SLURPEE®, BIG GULP®, and now, the BIG BITE®.
- Depending on the model and location, an average 7-Eleven store can range from $500,000 to $1,000,000.
The 7-Eleven company has come a long way from just being a convenience store. When The Great 7-Eleven Takeover happened nine years ago, the company was completely different. Before Seven & I Holdings acquired 7-Eleven, it was symbiotic with its franchisees. However, new management and training encouraged the staff to implement an aggressive growth machine that put profits before franchising.
It’s no surprise that while low-cost franchises are available for sale, 7-Eleven is still seen as one of the best investment opportunities with good ROI in the United States.
Types of Franchising Opportunities offered by 7-Eleven
Various types of single-unit and multiple-unit franchising opportunities are available with 7-Eleven. The three options are as follows:
- Traditional Franchises: With this business model, companies purchase the equipment land and buy a store.
- Business Conversion Program: These are franchises for people looking to convert a gas station, liquor store, or small convenience store into a 7-Eleven property.
- Non-Traditional Stores: These franchises are for those who wish to open their franchise in non-traditional locations, such as an airport terminal or rail station.
Available Franchise Locations For 2022
Finding the right location for your franchise is one of the significant decisions.7‑Eleven has 8,600 stores across the U.S., so there are more than likely one available in your neighborhood. Click here to find it. However, with so many stores throughout the country, it will be hard for a new franchisee to find a great territory and create great wealth with the brand.
Cost of Buying a 7-Eleven franchise
When buying the franchise, you should be aware of different costs and expenses. A 7-Eleven store can vary significantly in price, depending on several factors including location, products sold, and other factors. Depending on the model and location, an average 7-Eleven store can range from $500,000 to $1,000,000.
Let us look at the costs involved in purchasing 7 Eleven:
| 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 | $15,100 | $44,500 |
| Cash Register Fund | $500 | $1,500 |
| Store Supplies | $250 | $2,500 |
| Licenses and Permits | $8,000 | $10,000 |
| Real Estate and Equipment | Covered in “7-Eleven Charge” (see Other Fees) | |
| Insurance | $1,500 | $7,500 |
| Grand Opening Fee | $8,000 | $8,000 |
| Goodwill | Only applicable to incoming franchisees buying a current franchisee’s interest in a franchise. | |
| Additional Funds During First 3 Months | $0 | $60,000 |
| ESTIMATED TOTAL | $53,600 | $1,163,000 |
How Much Can I Earn As 7-Eleven Franchise Owner?
A franchise owner’s income depends on what you sell. But for a ballpark estimate, about 5% of store sales go to the owner as profit. Though the profits of 7-Eleven franchises are divided equally between the brand and the franchise, now the franchisor takes a more significant cut if franchisees do not renew their contract yearly.
To know if buying the franchise is right for you or not, you need to evaluate various pros and cons of the franchise, corporate, and business model.
How to Buy a 7-Eleven franchise?
There is a simple ten step process involved to buy a 7-Eleven franchise.
With the help of Fransmart as your franchising consultant, you can get help to evaluate if 7-Eleven is right for you, how the franchise works, what fees to expect while starting your own franchising business, and the things to be aware of when signing the franchising agreement.
Advantages and Disadvantages of 7-Eleven
The Advantages of buying a 7-Eleven franchise include:
- Comprehensive Training
- Financial Assistance
- Instant Brand Recognition
Disadvantages of investing in 7-Eleven include:
- High start-up costs
- Saturated market
- No long runway to generating wealth
Alternatives to 7-Eleven
While 7-Eleven has strong brand recognition, it is a mature brand which makes it difficult for new franchisees to generate wealth with the brand. Fransmart, the leading franchise development company for emerging brands can help you evaluate the 7-Eleven opportunity compared to hot new brands like Ike’s, Rise, Taffer’s Tavern, The Halal Guys, Slapfish, PayMore, Brooklyn Dumpling Shop
Contact Fransmart to explore if an emerging brand is a better franchise investment for you than 7-Eleven.