"7-Eleven" Company Profile

7-eleven franchise stores or 7-11 convenience stores have been around for more than 75 years and have become synonymous with ready-to-go, quick-service convenience operations. 7-eleven franchise focus is on meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and clean, safe and friendly shopping environment. 7-11 franchise convenience store is the premier name and largest chain in the convenience store retailing industry and is headquartered in Dallas, Texas. 7-Eleven operates or franchises approximately 5,800 7-Eleven franchise convenience stores in the United States and Canada and licenses approximately 20,600 7-eleven convenience stores in 17 other countries and U.S. territories throughout the world. During 2003, 7-11 franchise convenience stores worldwide generated total sales of more than $36 billion.

Franchise Information at a Glance

Franchise Fee: varies
Total Investment: varies
Min. Cash Required: varies

7-Eleven® is among the world's premiere convenience store retailers with a long and proud history that dates back over 75 years. We have been a leader in the franchise industry for more than 40 years since we purchased 127 franchised Speedee Mart stores in California in 1964.

Today, over 3,300 U.S. stores are operated by Franchisees who are dedicated to giving 7-Eleven customers what they want when they want it, by providing:

	7-Eleven franchise system - Are you a goal-oriented individual who wants to grow with a well-established retailer? Check this out!
	Business Conversion Program - Are you an independent store operator who would like to convert your business into a 7-Eleven store? Learn more now!

The 7-Eleven Franchise System is like no other in the country. It is a proven retail operation with a world-famous trademark, and the average initial cash investment is reasonable. Best of all, 7-Eleven Franchisees receive assistance and support along the way. A System Recognized by the Experts The experts agree. The 7-Eleven Franchise System is among the best. 7-Eleven has received a number of accolades for its business performance and franchising opportunities, including: The first place ranking in Convenience Store News’ Top 100 Franchise Chains for 2005 (also taking top honors for 2003 and 2004) Selection as Chain of the Year for 2005 by Convenience Store Decisions magazine 14 years on Hispanic Magazine’s Top 100 Companies providing the most opportunities to Hispanics Inclusion among the Top 25 Franchises for Hispanics in 2005 by Hispanic Trends Magazine A ninth place ranking in Enterpreneur magazine’s Top 500 Franchises® for 2006

How the System Works:

7-Eleven, Inc. buys or leases the land on which the 7-Eleven store sites. When the company develops the site, the investment can range from $1 million to $2 million per store, depending on land costs and whether the store will sell gasoline. 7-Eleven® also buys the store equipment and pays the utilities. The Franchisee leases or subleases a fully equipped 7-Eleven® store. The 7-Eleven Franchisee is responsible for ordering, buying and maintaining inventory; hiring and training employees, as well as payroll, cash variation, supplies, certain repairs, maintenance and other controllable in-store expenses. 7-Eleven maintains an "open account" for each Franchisee. This "revolving" account is credited with each day's receipts and debited with store purchases, operating expenses and other activities, and it includes the outstanding balance of any loans that 7-Eleven has made to the Franchisee.

What the Franchisee Receives from 7-Eleven:

A comprehensive 6-week training program on the operation and management of a 7-Eleven® store. An assigned Field Consultant who visits with the Franchisee at least once a week for several hours to provide counsel on every aspect of business. However, all store decisions are made by the Franchisee. Monthly financial and marketing records prepared by 7-Eleven for the Franchisee's individual store, including profit-and-loss statements, balance sheets, etc. A President's Leadership Council made up of Franchisees and 7-Eleven management. This organization gives Franchisees a voice in issues of national interest. Many important changes have been made to the 7-Eleven system through advisory councils and other local Franchisee forums. 7-Eleven may provide various forms of advertising for the 7-Eleven® stores as well as its products and services, ranging from broadcast and print media to point-of-sale signage. In addition, 7-Eleven also may support some of the Franchisee's promotional and community relations endeavors. 7-Eleven provides individual contractual indemnification to Franchisees to help protect them from many of the risks against which most small business persons must insure, often at considerable expense.

7-Eleven's Proprietary Store's Information System:

Provides Franchisees with a proprietary retail computer system that gives them valuable store information in an accurate, timely manner. It includes a state-of-the-art ordering system and electronic scanning cash registers. Is a sophisticated system that automatically collects daily merchandise sales, plus money order and other transaction information, and uses it to prepare sales and inventory reports. Tracks employee payroll information and helps prepare daily cash reports. It automates much of the store's daily record keeping and provides Franchisees with information on product sales so they can do a better job of ordering the products their customers want.

Fees and Expenses:

The Franchisee pays a one-time initial franchise fee to 7-Eleven (averaging approximately $70,000, depending on the store's gross profit, but that may vary significantly depending upon the area). A Franchisee is required to make an initial cash payment to 7-Eleven in an amount equal to the cost of the store's initial inventory, supplies, business licenses, permits, bonds and cash register fund. 7-Eleven will finance the Franchisee's continuing operating expenses. A typical initial cash payment to 7-Eleven for a franchise is about $89,000, but again, that may vary significantly depending upon the area. A prospective Franchisee may wish to purchase an existing 7-Eleven Franchisee's interest in his or her store for which the prospective Franchisee must negotiate a price with the current Franchisee. This is called a "goodwill" sale. The "goodwill" price is paid to the existing Franchisee and would be over and above the typical initial cash payment made to 7-Eleven. 7-Eleven Franchisees are independent contractors, and 7-Eleven's relationship with them is multi-faceted. The company is not only a franchisor, but also serves as landlord, financing source, business advisor and record keeper to the Franchisee.

7-Eleven is among the "Top 10 Franchises" of 2007 - Entrepreneur Magazine, January 2007