Franchises - 7-Eleven, Inc.

ProgramCritique.com Review:

7 Eleven is an established retail operation. 7-Eleven, Inc. purchases or rents land to build its store. It furnishes the store with equipment and makes the utility payments. They then lease the store to a franchisee. The 7-Eleven Franchisee takes care of ordering, buying and maintaining stock; employing and training employees, as well as payroll, supplies, repairs, maintenance and other sundry expenses. 7-Eleven Inc has an "open” and “revolving” account for the franchisees. This means that the account is credited with each day's earnings and debited with store purchases and operating expenses and due balance of loans that 7-Eleven makes to the Franchisee.

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The Franchisee has to pay a one-time fee. It varies depending on the store’s turnover and location but an average would be approximately $70,000. 7-Eleven will fund the operating expenses. 7-Eleven Franchisees are autonomous and the firm's association with them is comprehensive. The company acts as a landlord, financial, business adviser, and maintains performance records.

A franchisee receives total support from the company. They have to first undergo a 6-week training program on functioning and management of a 7-Eleven store. The franchisee makes all store decisions but a field consultant is attached to guide them on all aspect of business. 7-Eleven provides advertising support such as radio, TV broadcasts, print ads, or even signage’s. The company even offers individual contractual indemnification to help protect them against business risks.

7-Eleven initiated the convenience store theory in 1927. Their first outlets were called Tote'm stores.

The 7-Eleven Franchise System is a tested and proven method. It is highly acclaimed even by the experts. It was graded at fourth position overall and in the first in Category in Entrepreneur Magazine’s  “2004 Annual Top 500 Franchises”. It was placed at second position in Franchise Times Magazine’s “2003 report of the Top Franchises in the ”. For 13 consecutive years, 7-Eleven was listed among Hispanic Magazine's Top 100 Companies. 7-Eleven received top honors consequently for three years in Convenience Stores Category Captain’s Award.

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