The biggest franchise company in the world by the number of outlets isn’t McDonald’s or Burger King. It’s 7-Eleven.
If you are an entrepreneur and want to own a 7-Eleven franchise, this might be a good idea because of the high brand awareness.
The 7-Eleven franchise is one of the best franchises and biggest franchises to own. It is also listed among the best convenience store franchises that you must own
This article will discuss 7-Eleven’s franchise system and how it works, and whether it’s worth owning it or not.
About 7 Eleven Franchise
7-Eleven is originally a Japanese-owned American international franchise convenience store chain.
They were founded in 1927 under the name Tote’m Stores, but they changed to 7-Eleven in 1946 after a change in the operations of the company. They franchise all over the world and with over 78,000 stores.
They are the biggest franchise company in the world in terms of the number of outlets.
They offer their own branded products, coffee, fresh sandwiches, salads, bakery items, and many other convenience items.
7-Eleven Franchise Stores
The 7-Eleven franchisor offers three different store types:
- A traditional individual store is one the franchisor owns or rents.
- Business Conversion Program (BCP) franchise: Unlike typical franchisees, this franchisee pays a separate royalty and is subject to a different disclosure form.
- Micro Market Franchise: This small-scale store can be found on its own or in an office building, university, hospital, hotel, or other similar settings.
7-Eleven Franchise Model
| Initial Investment | $53,600-$1.1 million |
| Franchise | YES |
| Franchising Since | 1964 |
| Franchise-Fee | $25,000-$750,000 |
| Royalty-Fee | Varies |
| Liquidity | $50,000-$150,000 |
| Estimated Outlets | 78,000+ |
How Much Does It Cost To Open a 7-Eleven Franchise?
The expected average cost is between $53,600 and $1.1 million, including the franchise fee.
The big difference between the low and high end of the expected cost is because of 7-Eleven’s franchise system.
They have three different franchise levels, and each level has different costs, including the franchise and royalty fee.
A package called “7-Eleven Charge” also pays for the lease of the land, building, and equipment in the beginning.
This lowers your cost if you are eligible for this package. You pay a fee from the profit in variable percentages.
7-Eleven Franchise Requirements
In addition to the $50,000-$150,000 liquidity and $100,000-$250,000 net worth requirement, there are also professional requirements.
You need to be a U.S. citizen, over 21 years old, have no felony history in your background, and have no contradicting business ownership that might damage your 7-Eleven management.
If you can comply with these, anything additional such as managerial experience or industry experience comes as a plus. They help you in your application process and increase your approval chances.
You must also consider how much does a 7-Eleven franchise owner make? This will help you in better decision-making.
7-Eleven Training and Support
7-Eleven offers a comprehensive six to eight weeks of training to you and the designated people from your store.
This training is in-store and called C.O.O.L. (College of Operations Leadership). It teaches you about the operations of the store and the management of everything.
7-Eleven Terms of Agreement and Renewal
The length of the initial franchise agreement is for 15 years. If you meet the requirements and the franchisor is satisfied with you, you will be eligible for renewal.
The renewal is for one renewal term that equals the number of years you had with your previous franchise agreement.
7-Eleven Obligations and Restrictions
As the franchise owner, you have to actively participate in the operation of the franchise and be present at all times.
That’s why you don’t need to designate a manager to manage the franchise except if you own more than one 7-Eleven location.
Franchisee has to carry and sell all the products and services specified in the franchise agreement and comply with the quality of all other 7-Eleven stores.
7-Eleven Financial Assistance
7-Eleven has a direct financing program where they provide up to 65% financing on the initial franchise fee.
In addition to the franchise fee financing, there might be additional financing options if you are a qualified applicant.
You can learn more about this opportunity directly from your contact at 7-Eleven.
7-Eleven Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Casey’s General Store | $60,000 | 5% | $500,000-$1.6 million |
| Circle K | $25,000 | 4.5% | $268,500- $3 million |
| 7-Eleven | $25,000-$750,000 | Varies | $53,600-$1.1 million |
Conclusion
7-Eleven is a massive brand that has the potential to make a lot of money for the owners of franchise stores.
Luckily, they are open to franchising and even provide a great deal of both financial and professional support to their franchises. The excepted average investment is between $53,600 and $1.1 million.
The investment changes drastically depending on the type of store you want to open, location, size, and many other factors.
They provide in-store training, continuous support, and financing to their franchises.
Considering all of these, 7-Eleven is a great business to own, with the potential to make over $300,000 in annual revenue.
FAQ
Is it hard to get approved for a 7-Eleven franchise?
7-Eleven is one of the most popular brands in the world in its industry.
That’s why there are many applicants with a lot of experience and adequate finances. However, you will probably get approved if you can satisfy all the requirements.
What is the franchise fee for a 7-Eleven?
The franchise fee is between $25,000 and $750,000 for 7-Eleven.
Depending on your individual situation, it could be higher or lower because of specific discounts.
How can I apply to be a franchisee for 7-Eleven?
You need to contact 7-Eleven directly and send them the required information and documentation either by mail or physical post.
Sources
https://franchise.7-eleven.com/franchise/faq
https://franchise.7-eleven.com/franchise/the-financials
https://en.wikipedia.org/wiki/7-Eleven
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.