7 Eleven Was The Creation
7 Eleven was the creation of a man called Joe C. Thompson who bought an ice company and turned it into his own corporation which then started opening convenience stores called Tote’m which sold groceries, take-out foods and a bit of everything, famous for being open from 7:00-11:00 and it started Dallas, Texas.
Given the success, he maybe hadn’t realized of the growth he would one day accomplish, he had created a logo and a name popular beyond his expectations.
They began franchising in 1964, but it has been growing since 2007 especially expanding internationally; It is now ranked number one in the Franchise500 list.
Although there are a couple of financial requirements and ongoing fees, which consist of an initial investment of $40.000 – $1.100.000, withstanding their Net-worth of around $200.000 which shouldn’t be too much of a problem if somebody is getting into this business; and last but not least their ongoing fees like the franchise and the royalty fees which must be paid to the affiliate.
There are financing options offered by 7-eleven too, helping out with some fees, equipment and things of that sort, encouraging it for veterans who are offered from 10 to 20 percent discount.
Once business is done with 7 eleven then you’ll have access to their name and logo, products and services as well as their model and trade secrets; with access to their technology, basically access to their assets.
You have to be eligible for the job It is important to be aware of the current brands situation, and their business history, this store is open 24h and sometimes has a gas station too, service non-stop; They require you to have a U.S. citizenship, to be over 21 years of age and to have passion for the business with an excellent credit score, of course; and you can even apply online. They will be responsible for assigning you the location of the store and the decoration inside of it, as well as the staff and training. You don’t need a very savvy person to work at a 7 eleven store; it doesn’t require much skill.
There is a high demand for the products and services offered, with strong industry sales and fairly priced compared to other gas stations and convenience stores, there are strong competitors like Sunoco, CVS, Walgreens and many more, but it’s necessary to point out their most iconic product the Slurpee’s.
You must pay for payroll and taxes, cash and inventory shortage, equipment maintenance, cleaning services, national advertising and other expenses while they pay for the building’s rent, the purchase of the equipment, some utilities, advertisement of the brand, product development and real property taxes.
They have a different business model than other companies, they help you out by sharing the profits with the franchisees, such as guidelines on how to stop wasting assets. There are three ways to franchise through 7 Eleven and they are: single store franchising, which is suitable for certain individuals, then there is multiple store franchise which is pretty much self-explanatory and finally there is Business conversion program which consists of existing convenience stores being transformed into a 7 eleven. Many years ago when it started expanding to Canada and Mexico they started opening stores up as joint ventures with existing stores.
The profit lately comes from the sale of gasoline and diesel, gas prices in the US are relatively cheap whereas in Europe you would pay a lot more but in the US people rely on their cars at all times, it is as if it were an extension of their body. You can’t do much without a car in some parts of America. People rely on these stores to get their craved caffeine for those long road trips or a quick pit stop, fill up the car & stretch your legs, and the fact that people rely on their services makes it great for us and gives us an opportunity to open them around the country and even the world knowing that it’s going to prosper, unless you’re setting shop in a very unlucky spot.
There is a convention created specifically for the purpose of getting all the franchisees to get together including the presidents of the FOAs or franchise owners’ associations, although these recent years it had been decaying so it is beginning to get cancelled.
The idea of franchising is great, just create a name and service then make it public so people can start their own store with your name just their management following your guidelines and making it prosper. They now have over 60.000 stores around the world, who would say that the young Texan Tote’m would achieve so much and conquer the world. They are the world’s biggest convenience stores.
There are two things to have in mind when thinking of opening a franchise, there are obviously advantages and disadvantages, like mentioned before: having a big name is all, assured success if you work on it. The disadvantages are many, for example you can’t be in charge of specific operations in the store, there isn’t much freedom in this business, but at the end of the day it’s the easy way out to creating your own store from the ground, just buy out a little piece of company and partly manage it for a few years until a change in the contract and they end up getting more profit.
Starting your own business could mean lower costs and higher profit if done properly, but franchising is not for everybody, since you would have full control of everything going on in the company and not be guided by the owner of the brand and have to obey their rules and procedures which are implemented to assure a certain type of business which works well, but creating your own always gives you more possibilities.