Is 7-Eleven a good franchise to own?
We don’t know. In fact, we don’t even understand how their unique franchise arrangement works.
So we’re asking 7-Eleven franchisees to explain how the franchise works, and whether they think it’s a good franchise opportunity.
7-Eleven franchise owners, please answer some or all of these questions by leaving a comment or comment below:
Thanks for your comments!
Some of the increasing numbers of unhappy 7-Eleven owners say the 7-Eleven franchise is like buying a low-paying job.
Others say it’s worse.
Alex wrote:
This is how it works they split 50% percent of everything you make. So pretty much after the split, payroll expenses, maintenance fees, taxes and the list goes on and on… you only make the hours you put in, so say you work 50 hours a week multiply $10 an hr x 50 = 500 x 4 weeks you could make only that 2k a month and if your lucky and 7 eleven decides to give u a good month profit then you can make a couple more g’s or else u can also go negative.
I realized with this company it’s all about luck not how hard you work or how smart you are. They don’t know shit and don’t do shit to help you make money but waste money. It’s bad enough we deal with the store 24/7 but dealing with the consultant who comes every week to help to supposedly help improve sales is the worst part of the week and If you don’t get along with them too bad bc his boss is just like him/her.
If you complain all they say is to sell your store. That’s the worst thing someone can tell u after u invested over 250k with them…
Roti Kapda Makan wrote:
I wouldn’t recommend buying a 7-Eleven franchise.
My reasoning is that they do not allow a franchisee to grow within the system, regardless of having money. the typical ROI is almost 7 years on brand new stores, vs Goodwill stores (running stores) it is almost 4-5 years depends on what kind of premium you pay.
Back to the growth. I had one store for almost 2 years now. I am now approved to buy one more stores, but what sucks is, what if I want 3 stores or more, too bad so bad, 7-Eleven will not approve that. The approval rate to buy more stores is they say 6 months, but it ends up being 1.5 years. And brand new stores are bad investment, because of unknown sales and the Roi.
In conclusion a person does make money, but it is very hard to grow with this business in CA. Dallas, and Florida, however has better opportunity. One would pay anywhere from 400K to 700K in So. Cal for a Store vs in TX or FL one would pay 100K -300K for a very good store.
fukifuki wrote:
Oh well, my friends do not think about buying a 7-Eleven franchise. I am with them and had a really bad time through the years. We work hard and bring the business up but sorry man we did not get paid accordingly.
Their share is fix, their accounting system the worst i ever experienced. Sorry to say but just do your own job, if you are getting 9.00 an hour please do not think about buying this franchise.
7-Eleven Franchisee wrote:
I first started with 7 Eleven as a corporate employee, supporting franchise and corporate stores…
I always heard franchisees complain about SEI [Seven Eleven, Inc.]. Saying they stole money from franchisees, they were paying more for product and the list goes on. Then I became a franchisee. Boy were they not kidding. SEI is a big scam. They take 50% of your gross profit dollars. Yes you do not pay rent, you do not pay electricity, heat and ac. But boy you loose your life! Believe me I did…
If you are truly considering a SEI franchise, just look at the franchise agreement it is over 300 pages long. Every thing is covered you can not beat them. They will fight you every step of the way. Just be careful. I am trying to help you!
Also read:
ARE YOU A 7-ELEVEN FRANCHISE OWNER OR EMPLOYEE? PLEASE SHARE YOUR OPINION OF THE 7-ELEVEN FRANCHISE BELOW.
TAGS: 7-Eleven, SEI, 7-Eleven franchise, 7-Eleven franchise complaints, 7-11 franchise, 7-11 franchise complaints, Seven Eleven franchise, franchise complaints, 7-Eleven franchise cost, 7-Eleven complaints, 7-11 complaints
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View Comments
I am a Field Consultant for 7 Eleven and I hear everything from FZ's listed above. I have been in the C-Store Industry for 20 years doing everything from Managing, opening new stores to a Consultant. 7 Eleven is a great company and well put together. I feel that most just expect things to happen, I find consulting a challenge when it is apparent that everyone just expects things to happen. As a Franchisee, you have so much control on how GREAT things can be. I go in and start from the ground up, basics of the business and try to show how all of the small details play such a big part in continued success. How to "WIN" over 1 new guest everyday, the power of suggestive selling, freshing assortment, clean and sparkley stores, fresh assortment, sampling and having the right associates, in the right place, doing the right things. Never settle, never stop "thinking outside the box", get involved in the community. The possibilities are endless and it doesn't happen overnight. I teach FZ's how to pick the right teams, I assist with training, I do suggestive selling roleplays with their staff to show them how easy it is and the difference they can make. ONLY to find they don't continue and just settle. It is frustrating to invest time and not get the buy in... I care and you should BELIEVE~
If I only had the money to become a franchisee what a difference I would make. I enjoy sharing and genuinely am excited to see great things happen.
Good luck!!
Field Consultant
You do not have any first hand experience of operating a store and yet you advise on right things and what to BELIEVE? Nice!
Are there any corporate owned stores? Will corporate put you in-charge of that? I guess not. I am glad that you do not have money. You do not realize, if the store is not making money, only way out of this trap is to go bankrupt. Be thankful that you are not working for free and paid for such a horrible life.
My stores ALL make money. I have both corporate and franchise stores. I work hard to build solid infrastructure in my corporate stores so they are profitable and ready to franchise. In 1 year I have half my corporate stores getting ready to franchise. And, my franchisee's have good stores making money and I work hard to influence them in the power they can have to make things GREAT...
I enjoy and take great pride in going above and beyond to show them the different ways to grow and keep their guests coming back. I have built strong relationships in the community and have a great reputation for what I have accomplished and the customers know me in every store I oversee. I actually have 18 years operating 7 different stores, training manager and was the lead in my Market.
I have taken stores and tripled sales over several years and know first hand the possibilities are endless. Get into the schools, local businesses, car dealerships, repair businesses, banks, volunteer and sponsor groups in the community. Network and get yourself involved and create a culture in your store that sets high standards from any other store. Shop your competion to see what they offer and what their service is like. The service is horrible in most of the competion and guests have the choice to shop anywhere, but, WILL choose to shop where they are treated great, in a clean store, where the associates are friendly.
Give the guests something to talk about, keep them coming back and they will tell others. My Managers ALL must be top notch with the best staff and I set the expectation and am involved in everything they do. I takes time to build a great business and if you invest time in your people you will have success. It is important that employees are happy and enjoy working and they are the ones, the face of your business and they are who the guests come to see. Never give up and remember that everything you do should be for the guest.
I have been consulting for a little over a year and took a horrible sub group from failing to being top in my Market and every one of my stores are now making money with the best results and we are not finished yet. Our great results have gotten attention and others are trying to catch up. I promise if you commit fully and never lose focus you will make a difference....
And remember to always make things FUN and exciting.... Create fun challenges around sales between associates every week and reward them with things that cost your nothing, such as a weekend off, working first shift the following week or something similar that makes them feel appreciated. Motivate them to love what they do and they will reward you back...
That sounds real good FC.....let me guess you are in an area where 7-eleven is the big dog in the market.....what about areas where brite shiny new operators build 6000 sq ft palaces and SEI slaps a coat of cheap paint on an old horse? The Wawa's and QT's of the world kick SEI's behind all over the place. Doing your happy dance routine is something I did too BUT IF SEI WONT INVEST IN REMODELS AND ADVERTISING your are playing to an empty house. Customer counts have steadily declined EVERY YEAR since 1992 coincidently at the same time the Japanese became obsessed with "item by item control". SEI is so focus inwardly the outside world walked away....it may be too late.....go into any store in the vital morning day part and all you see is empty coffee and two people flying about with their order terminals in a sweat.....God forbid if the modem is down....what was truly a great brand with great products has become a shell of its former self......very sad.
I need to remind everyone...it was and is franchisees who have been the innovators with 7-11. First fountain drinks: franchisee 7-11 response "you can't do that!" First hot coffee to go: franchisee....7-11 response "you can't do that!" First hot dogs to go: franchisee....7-11 response "you can't do that!" More new ideas were implemented by franchise owners trying to build sales than any hairball idea that ever came out of an HQ bldg. anywhere......sadly those days are going and fading fast
My Grandfather knew the man that started this company and even commented saying " The founder of 7 eleven would be disappointed with stores being outdated " My opinion is they are. Wawa has dominated my area and continues to grow.
When the top management at SEI went on the "centralization" kick several years ago it accelerated the disconnect between stores and decision makers. Some things make sense to centralize (accounting etc) but making ALL merchandising decisions in Dallas is insane.....who better knows the customer in a Baltimore or Orlando than the folks there....just look at the "MADE FRESH YESTERDAY" food offerings....southwest mayo may make sense in the southwest BUT on the east coast I need a kosher style dog or a real Polish....not some cowboy interpretation...who better to sell a lavash (don't know what that is...look it up) than a Detroit store.....pierogi's in Chicago anyone? All the brain trust in DFW knows is jalapeno peppers.....and they wonder why they struggle to sell food...oh I forgot blame the franchisee!! The Wawa's and QT's and Sheetz's outperform 7-11 because they market their fewer stores to the concentrated markets they are in...
Poor FC is full of BS.
We operated two reasonably high volume stores in the Southern California Division and it was NOT the FC or anyone else from SEI who made those sales happen. We had what we believe were two of the most experienced and knowledgeable FC's in the system, and they came from different retail environments prior to working for 7-Eleven. They both fully understood that diversity within community was a driving factor and not what someone in the "Dallas Palace" dreamed up. (everyone remember from "The Undercover Boss", "pizzandwich"? What a wet dream that was. Whoever came up with that should never be allowed to work in retail, and whoever believed it was a good idea should.... well you get my drift. There are some good stores and some good FC's, and then there are those store that should have been closed or remodeled 15 years ago and the FC's who just blindly follow anyone. A 7-Eleven Franchise was once a great, fun business to operate. Even when we entered the system you had a reasonable amount of freedom to actually "run your own store" and "live the dream". That was before the Japanese decided to "change our culture". Today, I would not take a 7-Eleven store if they gave it to me without having to pay a Franchise fee. I am ambitious and i wouldn't take them if they offered me three or four of them. No how, no way!!!
DO NOT PAY FOR A 7-ELEVEN FRANCHISE!!! DO NOT TAKE ONE IF THEY OFFER IT FOR FREE!! UNLESS YOU ARE SOMEONE WITH MORE MONEY THAN SENSE, OR USED TO BEING A FOLLOWER AND TOLD WHAT TO DO AND WHEN TO DO IT, RUN AWAY FROM ANYONE WHO TELLS YOU IT WOULD BE A GREAT INVESTMENT! 7-ELEVEN SHOULD BE INVESTIGATED BY BOTH STATE AND FEDERAL AUTHORITIES FOR THE MISLEADING AND FALSE STATEMENTS THEY PUT IN THEIR ADS AND AGREEMENTS.
Joe DiPinto once said that ex-military make great franchisees. That's because they are used to saying "yes sir" and "how high" and following ORDERS without question. Doesn't that tell you something about what they really want??
I recently met with a group of "Franchise Attorneys" and their consensus was that NOT ONE OF THEM WOULD RECOMMEND PURCHASING A 7-ELEVEN FRANCHISE!"
Head their advise, stay away from this system.