In the franchise industry, 7-11 has truly humble beginnings. An owner in Dallas, Texas, ran 16 icehouse companies in 1927. All were thriving. There was no reason to make any changes.
But one of the managers had a business franchise inspiration. He asked the owner if he could start selling bread, milk and eggs. The idea was wildly successful and all the stores started doing it. They called the stores “Tote’m” stores. In 1964 the company purchased 126, SpeeDee Marts, in California.
Every year, there were more and more franchises. Currently, there are 78,029 7-11s in 19 countries, with 135,000 employees. There’s even a 7-Eleven in Japan. As franchises go, the 7-Eleven franchise is one of the easiest to start. Still interested? Time to learn more.
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Basic Facts About the 7-11 Convenience Stores Franchise
- The original 7-11 was the store hours, 7 a.m. to 11 p.m. Now stores are open 7 days a week, 24 hours a day.
- You may be able to get into a 7-Eleven franchise with 65% financing. That’s incredible in the franchise business. The folks who review 7-Eleven franchise applicants like to see a resume with 5-10 years of convenience store management and also encourage military veterans to apply. The company is known for its quick response to requests for information from interested entrepreneurs.
- The startup for this particular franchise can be as short as 30 days. The range is 30-90 days. The longer time periods to get to opening day are often with the retrofitted, remodeled buildings. It usually takes longer to remodel than it does to build from scratch.
- The 7-11 franchise runs under other names in various parts of the country. They are known as Speedway in the Midwest and East Coast, and as Stripes in the South Central United States.
- As a franchise 7-11 is consistently ranked high by its new owners for its communications between corporate and the current franchisee’s interest.
7-11 Franchise Cost
The initial fee varies depending on which type of 7-Eleven franchise you choose. 7-Eleven franchises include:
- Traditional – one person owns the 7-Eleven franchise business
- Multi-unit – a great number of 7-Eleven franchise owners go on to expand and own multiple stores.
- Business Conversion program – 7-Eleven will take a look at an existing business structure and determine whether or not it can be turned into a 7-Eleven store. 7-Eleven has a good track record of retrofitting existing owned structures.
7-11 Franchise Fee
Considering the varying options above, the total investment for a new 7-Eleven owner can range from $37,000 to $1.6 million. Within that total investment is a sliding scale of 7-Eleven franchise fees, which can range from $15,000 to $58,500. The franchise fee varies depending on the type of business you are opening.
7-Eleven pays special attention to military veterans who are seeking to own one of its finances. Veterans and minorities are strongly encouraged to apply.
7-11 Franchise Profit
7-Eleven franchises have a ton of brand strength, and exclusive territory – all things that a franchisee appreciates. 7-Eleven also has local training centers and immediately responds to queries from the franchisor. The company will send you free info and soon reach out to you to provide more information about franchise operations.
For aspiring entrepreneurs, 7-Eleven is a great way to own a business in a growing industry. Franchisees get a lot of support and training.
7-11 Franchise Owner’s Salary
The company reports that the new 7-Eleven franchise owner typically makes $50,000 in the first year. You make 5% of the store sales. A franchisee should make $75,000 the second year.
Compared to other businesses, that’s a great record in franchising. The amount you make is up to you – how much you can do to boost store sales.
7-11 Franchise Requirements
Here are some of the basic financial requirements you’ll need if you want to be a 7-Eleven entrepreneur.
Net Worth
The franchisor will want to see a net worth of at least $150,000.
Liquid Capital
Franchisees’ liquid capital should range between $50,000 and $150,000.
Minimum Investment
To open your doors and start selling to customers, franchisees need about $37,000. The additional funds will cover inventory and equipment such as shelving and racks.
Financing
Unlike similar franchises, 7-Eleven may offer financing to help you wrap the initial franchise fee into your other fees and mortgage. The company wants to support the entrepreneur.
Training
You’ll have to sign up to attend training which will be offered at local locations.
What’s Included in a 7 11 Franchise Disclosure Document?
The franchisee will receive a franchise disclosure document. That is an important part of the presale “due diligence” for incoming franchisees buying into the company.
The Franchise Disclosure should help you decide whether or not franchising is for you, and if you can operate it successfully. The Franchise Disclosure Document is not the same as the Franchise Agreement. The Franchise Agreement is the legal document you’ll sign after all questions about financing, operations and fees have been answered.
Is Opening 7 11 Franchises Worth It?
A convenience store becomes a vital part of a community for the services and products they provide.
If you look at entrepreneur media inc., third-party sources rate 7-Elevenas as a top company, especially in terms of support. After the initial start-up fees, there will be an annual advertising fee. The franchisor covers any accidental damages to equipment inside and outside the store.
That’s why the 7-Eleven franchising businesses are popular with many owners. The owners are people who enjoy being part of a neighborhood and providing services to the people who live there.
How strong are your business and people skills? You’ll be the neighborhood “Go To” spot. If you relish that role and will be courteous and hard-working, you’ll get repeat customers. And you’ll join the ranks of successful franchise owners.
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