Things You'll Need:
- $100,000-$600,000+
- Time to take a six week 7 Eleven training course
- Management skills and the ability to staff a 24-hour convenience store
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Step 1
A 7 Eleven ATM/check cashing machineConsider whether this is the right move for you. 7 Eleven is one of the world's leading convenience store chains with thousands of stores in the United States, Japan, China, Taiwan, Thailand, and many other countries. A famous brand name, good market research and advertising makes 7 Eleven a good franchise to consider.
Franchisees sign contracts with the company to split 50% of the profits. The company pays for store equipment, sales banners, equipment maintenance, and many other things. Franchisees pay wages, certain in-store expenses, and are responsible for shortage -- losses due to shop lifting or employee theft.
Franchise contracts usually require 7 Eleven store to operate 24 hours a day, 7 days a week.
The 7 Eleven company provides some flexibility to the owner on how he runs his store, but there are some hard and fast rules. Owners may purchase most of their inventory from 7 Eleven or use other suppliers.
Potential franchisees should discuss this issue with the company and other 7 Eleven owners.
You will need adequate capital. You won't be permitted to use your 7 Eleven franchise as collateral. -
Step 2
7 Eleven stores use computers for personnel management and inventoryThe first step to success is finding the right store. Despite your sales and management abilities, if your store is in a bad location, it may never make money. You will want to check out stores that interest you by visiting them at various hours of the day to see how much customer volume they are getting. Note especially morning coffee business. Is a store in a bad location, such as on one side of a divided highway? Is a new road scheduled to be built that could hurt a store's business? Is a competing franchise building their own store nearby? Is the store in a high crime area? Some of these questions may be hard to answer and will take some research.
Note that stores in urban areas with higher crime rates often do spectacular business. Not everyone is cut out to run such stores.
You must carefully review the books of any franchise store you are thinking of buying. What do the profit and loss statements look like for the last few years? It is possible that a store that lost money but had high gross sales is worth considering because it had been managed badly. You need to get P&L information from the franchise owner and 7 Eleven company officials before you sign any agreements.
Although it is possible to buy a new store, in all likelihood, you will be buying an existing franchise from a franchise owner by paying the owner a good will fee for the business he has built up over the years.
If you currently own your own small store, it is possible to covert it into a 7 Eleven. Consult the company for details.
Typical franchise fees are as follows:
-- Paid to the company: $50,000-$350,000. This may included a $10,000-$40,000 gasoline fee if the store sells gas.
-- Good will fee paid to the existing owner: $100,000 but usually runs about $400,000 for a good store. This fee could be much higher for an extraordinary store.
Be careful about stores with low or no good will fees. This could be a store with problems that the existing owner fled or is trying to unload.
You can contact the 7 Eleven company for lists of store for sale in your area. You also may see ads for 7 Eleven franchises for sale in your local paper or websites like franchise.com. Some 7 Elevens for sale may have signs posted in the store window. -
Step 3
You can start the process to buy a store either by talking to a 7 Eleven company representative or a franchise owner. (You could also use a franchise broker. See link below for an article on this.)
The owner chooses who to sell to, but 7 Eleven must qualify potential buyers. Coming to the company with evidence that you have sufficient funds to purchase a franchise, at least some business experience, and a business plan that includes how you will staff a store will help you get qualified.
After talking to an owner, you may want to put down a deposit to reserve your right to buy the store pending qualification by the company. If you do this, obtain a written agreement from the owner and get this agreement to the company ASAP.
Alternately, you can get qualified by the company then talk to owners. The advantage here is obvious -- owners will know you are a serious buyer and may give you leverage to negotiate the good will fee. -
Step 4
After you are approved to purchase a store, you cannot take formal possession until you complete 7 Eleven's mandatory 6-week training course. This course teaches you how to operate a convenience store, 7 Eleven policies, etc. Included will be training on how to order inventory, the electronic cash register/scanners, and the company computer system.
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Step 5
Take possession and run your store. After you complete the training, you can formally take possession of your store. If you bought a store with good sales potential, run it the way the company taught you, you should do well. That is, as long as you can tackle the staffing issue. The key to your success will be hiring and keeping honest, hard working staff. To make a profit, you can't offer high wages or benefits. You need reliable people who will be courteous to customers and encourage them to shop in your store. Also realize that employee theft is a serious problem and is the reason many owners lose their businesses.
Many successful owners have large extended families working in their stores. Some hire the children of close friends. Solve the staffing challenge and your 7 Eleven store could be very profitable. Good luck!
Comments
shirleybill said
on 5/30/2009 Great advice