7-Eleven is one of the biggest names in convenience retail stores, and if you wish to learn about how much does a 7-Eleven franchise owner make, then you are on the right page!
In this guide, we have revealed the investment you will need, the profit that you can make, the payback period, the pros and cons of owning this franchise, etc.
So make sure you do not skip anything.
About 7-Eleven
7- Eleven is a chain of retail convenience stores that was founded by Joe. C Thompson in 1927, in Dallas, Texas.
7-Eleven was called Tote’m Stores earlier, but later they renamed it to 7-Eleven, which reflected the extended hours from 7 am to 11 pm a week.
The concept of a retail store was new at that time. Hence, the company started to grow rapidly and soon started opening franchise stores nationally and internationally.
Today 7-Eleven has made its name in the top 10 best franchises, and it currently has more than 71,000 stores in 17 countries.
If you wish to own a 7-Eleven franchise, then you should know that the franchisor offers candidates three different types of franchise models to choose from: A traditional store, a Business Conversion program, and a Micro market Franchise.
Keep digging in to find out how much investment you will need and how much does a 7-Elven franchise owner makes.
((https://franchise.7-eleven.com/franchise/the-brand))
How Much Does A 7-Eleven Franchise Owner Make?
The sales that a 7-Eleven franchise owner makes differ from location to location, day-to-day expenses, operating costs, etc.
However, it is estimated that 7-Eleven franchise owners make $1.4 million in sales each year on average.
Also, the 7-Eleven company made $2.94 Billion in the year 2022, which shows an increase of 4.82% from the previous year’s performance of $2.81 Billion.
How Much Does 7-Eleven Employee Earn?
The salary of a 7-Eleven employee may be different based on their level of experience, department, location, skills, etc.
However, according to Indeed, the average pay for a 7-Eleven employee ranges from $9.79 per hour for someone working as a Guest Service Agent to $35.99 per hour for someone working as an Accounting Supervisor.
In yearly terms, the average pay for a 7-Eleven employee ranges from approximately $25,446 per year someone working as a for Retail Sales Associate to $144,914 per year for someone working as a Senior Tax Manager.
Pros & Cons Of 7-Eleven Franchise
Pros Of 7-Eleven Franchise
- Multiple models to choose from.
- Offers 65% financing on their initial franchise fee.
- One of the top-performing convenience store brands.
- Provides support and training.
- Profitable.
- Offers discounts to eligible veterans.
Cons Of 7-Eleven Franchise
- 24/7 business.
- Most of the decisions are taken by franchisors.
- High-cost Investment.
7-Eleven Average Revenue & Profit
As already mentioned 7-Eleven franchise owner makes $1.4 million in sales each year on average, and they make $75,000 in profits on average.
The revenue and profit earned can vary depending on the type of franchise model you choose and the amount of investment you make to open your 7-Eleven franchise store.
However, the typical range of profit usually lies between $40,000 – $180,000 a year.
7-Eleven Franchise Failure Rate
There is not enough data available to determine the total number of 7-Eleven Franchise outlets that opened and closed in the last three years to determine its failure rate.
But we do know that 7-Eleven has over 71,000 stores in 17 countries, with 9,000 stores just in the U.S., which is quite impressive. And this tells a lot about the success of this franchise.
7-Eleven Franchise Payback Period
To find out the payback period of the 7-Eleven Franchise, let us do some calculations:
| AVERAGE INVESTMENT | $608,300 |
| AVERAGE REVENUE PER OWNER | $1,400,000 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $75,000 |
| AVERAGE PAYBACK PERIOD | 8 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 608300/75000 = 8.1 = 8 based on median
The average investment for a 7-Eleven Franchise is $608,300.
With an average profit percentage of 15%, the average profit per year is $75,000.
This means that the average payback period for a 7-Eleven Franchise is 8 years, and the total investment of $608,300 would be recouped within this period.
7-Eleven Might Be The Hardest Franchise To Get
It is not quite easy to be eligible to own a 7-Eleven franchise. Here are all the qualification you must meet in order to get this franchise:>;
- Willingness to open Multi-unit franchising.
- 5-10 years of experience in managing multi-unit businesses.
- Have a U.S. citizenship or permanent residency.
- Not have any other business.
- Pass a background check.
Financial requirements:
- Have a minimum net worth of $150,000.
- Have minimum liquid capital of $50,000 to $250,000.
- Investment of $53,600 – $1,163,000.
Facts About 7-Eleven
- Initially 7-Eleven didn’t plan on remaining open 24×7, but one night they saw a rush of university students and had to extend hours that day, which led them to come up with the idea of remaining open 24×7.
- 7-Eleven is one of the largest and leading franchise companies in the world.
- The famous Slurpee was actually invented accidentally at Dairy Queen.
- 7-Eleven has been giving free Slurpees since 2002 on the occasion of its birthday.
- Once, a 6-foot lizard visited the 7-Eleven store near Bangkok.
- Winnipeg, Canada, has been the Slurpee capital of the world for 20 years now.
- 7-Eleven menus are slightly different in different parts of the world.
- 7-Eleven was initially known as Tote’m.
- There are twice as many 7-Eleven stores in the world as McDonald’s.
- 7-Eleven is the first convenience store to remain open for 24 hours.
- The term ‘Brain Freeze’ was invented by 7-Eleven.
- 7-Eleven has quite a few private brand wines.
- It sells over 1 million cups of coffee each day.
- IRS partnered with 7-Eleven in recent years, so you can pay taxes in cash at 7-Eleven.
((https://www.eatthis.com/secrets-about-7-eleven/))
What Is 7-Eleven Best Known For?
7-Eleven is a convenience store that is known for offering various products like baked goods, snacks, on-the-go hot meals, Slurpees, and so on.
It is a kind of retail store; where you will find all the basic items that are used in our daily lives.
They also offer e-service, home delivery, and bill payment facilities for their customers and are focused on providing high-quality services.
Is 7-Eleven Franchise Profitable?
Usually, convenience stores are profitable business ventures, and 7-Eleven happens to be one of the most successful and well-known convenience store franchises in the world.
So is the 7-Eleven franchise profitable? Yes, it is profitable, and franchise owners can expect to make $75,000 annually on average.
However, the profitability varies based on the kind of franchise model you choose, your initial investment amount, etc. So do not forget to calculate and consider all these factors.
7-Eleven Franchise Earning Potential
7-Eleven has good earning potential. Franchise owners can make as much as $125,000 in net profits a year.
However, because of the high cost of investment, you might have to wait for 8 years on average to recover your initial investment amount, and only then will you be able to enjoy larger parts of the profit earned.
Wrap Up
After looking at the franchise details of the 7-Eleven franchise, this is what we can conclude.
7-Eleven requires a high cost of investment, but since the company offers financing opportunities, this could be of great help to you.
This franchise is profitable, but the average payback period is 8 years, which is a lot. Also, you should be willing to open multi-unit franchises to be eligible, among other things.
So it is upto you if you think this franchise is suitable for you or not.
Frequently Asked Question
What is the franchise fees of 7-Eleven?
The franchise fees of 7-Eleven is between $0 – $1,000,000.
What is the intial investment required to open a 7-Eleven franchise?
The intial investment required to open a 7-Eleven franchise is $53,600 – $1,163,000.
How much royalty and marketing fees does 7-Eleven charge?
7-Eleven charge 5.7% as royalty fees and 2.5% as marketing fees.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.