Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 2,900 franchises and knows the key facts and data that signal a successful A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?... More system. Upon extensive review using a number of internet research tools, our team was able to compile a short list of the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: 7-Eleven, as well as the requirements that encompass its franchise application process.
7-Eleven began its story in 1927, when Joe C. Thompson – then an employee of the Southland Ice Company in Dallas, Texas – began selling milk, bread and eggs across its stores that until then were only selling ice blocks. With the growing success of the store’s innovation, Joe Thompson was eventually able to buy Southland Ice Company which was then converted to Southland Corporation – a company focused on opening convenience stores across the state. By 1946, the new store model had increased dramatically across a number of locations, and this initial success led the stores to extend their opening hours from 7am until 11pm, seven days a week – hence, the store’s name. Franchising began in 1964 after the Southland Corporation purchased an additional 126 Speedee Mart franchised convenience stores in California that were eventually incorporated into 7-Eleven’s business model. Today, 7-Eleven currently has more than 9,000 stores across the United States and additional units across a number of continents such as Europe, Asia and Oceania. 7-Eleven’s continues to this day, to be headquartered in Dallas, Texas and is now run by its President and CEO, Joseph DePinto, who has served in this position since December 2005.
When investing in a 7-Eleven franchise, the first factor to consider are the financial requirements that accompany this endeavor. The total investment amount required to open a 7-Eleven franchise ranges from $47,050 to $1,165,400 including the company’s franchise fee that can range from $0 to $1,000,000 depending on a number of factors, particularly pertaining to the location the investor will be pursuing. Once the store has been built and operations begin, franchisees are expected to pay the parent company a royalty fee that varies according to the growth percentage of the store’s The profit a business makes after deducting the costs involved in making, providing, and selling the goods and services. In an income statement, it is the sales minus the cost of goods sold.Gross profit = Revenue - Cost of Goods Sold... for that month, and a marketing fee of 1% in return for the franchisor’s marketing services. The franchisor is particularly looking for candidates who are residents of the United States, have previous management or customer service experience and have an excellent credit history. Additionally, their franchise model is structured in a way where a franchisee receives a fully stocked turnkey store whose land purchasing and building operations have been handled by 7-Eleven’s corporate team. Because 7-Eleven offers multi-unit investment opportunities in addition to single-store purchases and business conversions, candidates must have minimum liquid assets ranging from $50,000 to $250,000.
When evaluating a 7-Eleven franchise’s potential for growth one does not need to go beyond their internal numbers to better understand the prospect for success of the investment opportunity at hand. 7-Eleven currently operates more than 7,000 franchised stores in the US and an additional 1,800+ corporate-owned stores. Additionally, the annual revenue across all 7-Eleven stores in 2019 was of $4.20 billion, while the average gross profit from 7-Eleven’s franchised stores in Wisconsin for example, ranged from $217,080 to $435,394 out of which 50%-60% of stores within this group met or exceeded this range. Looking at 7-Eleven’s franchise program performance, although limited data was made available on the financial status of the company’s franchisees, it was found that from 2016 to 2017 7-Eleven had a total increase of 535 franchises to its system, thus indicating a strong franchise system that continues to attract new applicants. Moving forward, 7-Eleven is looking for candidates willing to run franchised stores across the states of Florida, Illinois, North Carolina, Utah and Washington, so that it can maintain and up its rank status on Entrepreneur’s Franchise 500 List which was n˚11 in 2019.
Investing in a 7-Eleven franchise is an interesting opportunity, especially for individuals looking to make their way into the retail industry. The prospects for growth and success within the industry and the 7-Eleven brand itself are extensive, and a number of markets continue to be available as 7-Eleven continues its quest to expand across the United States. If you are an individual with previous management experience, excellent credit history and are willing to invest in an amount ranging from $47,050 to $1,165,400, 7-Eleven is the right franchise for you!