Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Franchising with the world’s favorite convenience store iseasier than you think.
Let’s talk franchising.
Brand strength:
It’s turnkey:
Technology:
Gross profit split:
Faster start-up:
Ongoing support:
Our brand is known and loved around the world, and 7-Eleven is consistently ranked as a top five franchisor.
7-Eleven provides the store, land and equipment, plus extensive training and support from our pros.
We’ve invested millions to provide you with the technology that allows you to keep your shelves stocked with what sells best in your neighborhood.
Rather than sharing royalties on sales, we share profits. This means your success is as important to us as it is to you.
You can be up and running in 3-6 months.
We give you world-class support. We also assist you with many of the day-to-day details, so you can stay focused on what matters most – your customers.
These pages were designed to answer all your questions about franchising
with the world’s #1 convenience store. We know it’s a big decision.
But franchising with 7-Eleven® just might be one of the smartest decisions
you’ll ever make. In a nutshell, here’s why.
Thank you for your interest in exploring a 7-Eleven franchising opportunity.
Please know we will do all we can to help you make the best possible decision.
A financial big pictureHere are the financial nuts and bolts of
franchising with 7-Eleven. If you still have
questions, remember that you’ll have a chance
to speak with your local Franchise Sales
Representative (FSR) in person. Our FSRs have
all the answers and are prepared to walk you
through every step of the way.
OwnershipTo make this business opportunity possible,
7-Eleven obtains and bears the ongoing cost
of the land, building and store equipment. We
then lease (or sublease) a fully equipped, ready-
to-operate 7-Eleven store, complete with initial
inventory, to you. As a 7-Eleven franchisee, you
will not obtain any ownership interest or equity
in the store site or equipment.
Franchise feeThe initial franchise fee ranges from $50,000 to
$700,000, depending on a number of factors,
including store and location. The current
national average initial franchise fee for a
7-Eleven store is $190,000.
For a list of available stores, visit
Franchise.7-Eleven.com/Available-Store-Locations.
Your local FSR can provide you with specific
franchise fees or additional details on specific stores.
Initial inventory down paymentOne of the benefits of franchising with 7-Eleven
is that the shelves are stocked with the initial
inventory for the store. As the franchisee, you will
then buy the initial inventory from 7-Eleven. The
cost of this purchase is not included in the initial
franchise fee. A fully stocked store generally
has inventory costing about $60,000, but the
actual amount may vary significantly depending
on the store. When you enter into a franchise
agreement, you are required to pay 7-Eleven a
$20,000 down payment on the initial inventory
for the store, and the remaining cost may be
financed by 7-Eleven.
Business licenses, permits, bonds and cash register fundIn addition to the initial franchise fee and
inventory down payment, you pay the cost of all
business licenses, permits and bonds required
by governmental agencies or by 7-Eleven.
The average cost is $6,500. Again, the amount
may vary by store. You are also required to pay
7-Eleven initial funds for the cash register in
order for the store to operate. This amount will
also vary but generally begins at about $1,000.
Here’s what your upfront investment looks like7-Eleven offers opportunities to franchise
a nationally known convenience store for a
moderate investment. Your up-front cost for a
7-Eleven franchise will include:
• Initial franchise fee
• The down payment on the store’s opening inventory
• Supplies
• Business licenses
• Permits
• Bonds
• Cash register fund
This is paid in full to 7-Eleven when you
sign the franchise agreement. The actual
investment may vary significantly depending
on the store. 7-Eleven may provide financing
for a portion of your initial franchise fee.
A premium saleThere are two types of stores available on
our website. Some are currently operated
by 7-Eleven and others are operated by
franchisees who are interested in selling
their stores (known as Goodwill stores).
In addition to the up-front payment to
7-Eleven, the purchase of a store from a
current 7-Eleven franchisee (a Goodwill sale)
may require an additional payment from
you to the selling franchisee. The amount
of the payment is determined through an
agreement between you and the current
franchisee. If you are offering to buy a
7-Eleven franchise from an existing
franchisee, you must first be approved
by 7-Eleven.
The contractThe term of the 7-Eleven franchise
agreement is 10 years. Renewal and
termination provisions are outlined
in detail in the Franchise Disclosure
Document (FDD).
Ongoing financing7-Eleven will provide an open account
or financing to qualified franchisees for
the inventory and operating expenses of
the store. The amount financed generally
fluctuates from month to month based
on sales, inventory, purchases, operating
expenses and withdrawals from a store’s
open account. The annual interest rate is
generally two points over the prime rate
as noted in the FDD.
Ongoing feesWhen you franchise with 7-Eleven, both
you and 7-Eleven have a stake in the
store’s profitability. Rather than taking a
percentage of total monthly sales receipts,
you pay a percentage of the store’s gross
profits to 7-Eleven as compensation
for the license of the service mark and
system, the lease of the facilities and
certain ongoing services. Details on the
gross profit split are outlined in the FDD.
=GROSS PROFIT
7-Eleven pays for: • Property & building rent or
acquisition cost
• Equipment purchase or rent
• Certain property taxes
• Some utilities (electric/gas/water/sewer)
• Building maintenance
• Equipment replacement expenses
• 7-Eleven advertising
• Contracted indemnification
• Initial and ongoing training programs and written or online material on any/all store operations
• Bookkeeping and back office support
• Financial summary reports
• Inventory audits
• Product development and merchandising assistance
• Ongoing business advisory assistance
• Local and national level franchisee advisory councils
Franchisee pays for:• Payroll and payroll taxes
• Workers’ compensation and employee group insurance
• Business taxes and licenses
• Cash and inventory shortage
• Store supplies and all miscellaneous store expenses
• Equipment maintenance and overall general repairs
• Outside property maintenance and landscaping
• Telephone service
• Janitorial and laundry services
• Security expenses
• National advertising fee and local store advertising expenses
• Interest expenses
• Other operating expenses
The road to your very own 7-Eleven franchiseApply
• Apply online at Franchise.7-Eleven.com/Apply-Now
• Your application and credit report will be reviewed by a Franchise Recruiter (minimum credit requirements apply)
• If applicable, an initial discussion will be scheduled with a Franchise Recruiter for a chance to learn more and discuss the process
Business Leadership Inventory (BLI) assessment• BLI is a non-proctored assessment that determines your leadership skills
• The BLI is by email invitation only, and administered online
Your second meeting• Complete a structured discussion with an FSR
• Select a store and review financial information as well as initial investment fees
• Discuss selected store details with an FSR
Franchise agreement is offered and signed
Your first meeting: Business Acumen Evaluation (BAE)
• The BAE is a proctored assessment that indicates how well you understand business
• The test is given in an office environment by appointment
Background check• Your background check and funds are verified
Training• Fly to Dallas, TX for a weeklong Launch Class that
introduces you to the 7-Eleven brand
• Back to your communty for 4-6 weeks of in-store, computer based C.O.O.L. (College of Operations Leadership) training Change Over
(Grand opening)
Final discussion with 7-Eleven’s management team
Open disclosure• The Franchise Disclosure Document (FDD) is sent electronically
• Here’s your opportunity to learn about the 7-Eleven, Inc. franchise model
1
2
3
4
5
6
7
8
9
10
Basic requirementsIf you’re interested in franchising with 7-Eleven,
take a look at our basic franchisee requirements.
If you have questions, your designated FSR
will explain the details at any point during your
application process.
A single-store franchisee must:• Have US citizenship (or permanent residency)
and be at least 21 years old
• Live near selected store
• Be able to obtain/maintain all licenses necessary for the store operation
• Read, write and speak English proficiently
• Pass a comprehensive background check
• Have excellent credit
• Complete all steps in the application process and 7-Eleven’s current store training
• Have no prior record of misdemeanor or felony convictions
• Understand the need to be involved in the day-to-day operation of the store
• Have realistic financial expectations and understand and accept the business risk associated with franchising
• Demonstrate the willingness and ability to work within the 7-Eleven franchise system
Incorporation guidelines: Up to four individuals
can be owners in the purchase of the store. All
four must complete individual applications,
be approved for a franchise and successfully
complete training. All must be involved in the
day-to-day operation of the business and own a
minimum percentage of the corporation.
A multi-unit franchisee must:• Meet all single-store franchisee basic
requirements
• Identify a designee for every store of interest who will need to attend and successfully complete the training program along with you
• Have a background that supports managing a 7-Eleven store (retail & management experience)
• Not have any other business interest that, in the opinion of 7-Eleven, might jeopardize their opportunity to successfully implement the 7-Eleven business concept
Incorporation guidelines: Up to four individuals
can be owners in the purchase of the store. All
must own at least 20% of the business. At least
two owners must successfully complete training.
All owners must assign a principal managing
director. This individual will complete training
and be involved in the day-to-day operation.
Work experienceHere’s an overview of our experience guidelines.
Once again, if you have questions, your FSR can
discuss these requirements in detail at any point
during your application process.
A single-store franchisee must:• Have retail or operations experience
• Have management/leadership experience
• Show a stable employment history and be able to provide good work and/or business references
• Exhibit a passion for excellent customer service and understand the importance of community involvement
• Exhibit good organizational skills
• Demonstrate a thorough understanding of computer operations/benefits and the ability to quickly learn and teach emerging technologies focused on improving the guest experience
• Be able to analyze data and make decisions based on information collected (trends, sales, etc.)
• Exhibit an understanding of the product assortment concept
• Demonstrate a solid understanding of the impact of image to overall sales and profit improvement (including store conditions as well as employee appearance)
• Food service experience is beneficial, but not required
A multi-unit franchisee must:• Meet all single-store franchisee experience
requirements
• Have multi-unit management experience (5 to 10 years)
• Hold past business ownership experience (multi-unit ownership and/or franchise business ownership preferred)
Financial requirementsFinancial requirements are the same for both our
single-store and multi-unit franchisees. If you have
questions, feel free to discuss them with your
designated FSR during your application process.
A single-store & multi-unit franchisee must:
• Provide required documents for financial review
• Be able to show that all assets identified for the investment are in the U.S. and verifiable by 7-Eleven
• Have 100% of the investment plus three months of living expenses (contingency funds) available from sources acceptable to 7-Eleven at the time the agreement is signed and before attending training
• Have 7-Eleven approve (in advance) all incorporations
Thanks for taking the time to learn more about franchising with 7-Eleven. If you think you’ve
got what it takes, go ahead and take the next step. Visit Franchise.7-Eleven.com and fill out a
franchising application today. It really is that easy, and it just may change your future – and your life.
© 2014 7-Eleven, Inc. This is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. 7-Eleven Inc., One Arts Plaza, 1722 Routh St., Suite 1000, Dallas, Texas 75201
Let’s keep the conversation going.