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
The best and easy solution for all the poor FZ's is to call your state attorney general and your local congressman.
I did it last week atleast they gave us the hope that they are willing to look into it and then probably investigate the matter.
So please do call your local politicians and attorney general.
Time is running out you need to do it now as SEI will think no one is above them.
Call your local FOA and contact them as lot is happening.Ask them for updates.
BE BRAVE ATLEAST AND SUPPORT YOUR LOCAL FOA
DO NOT BE COWARD AND AFRAID THIS SEI KNOWS THAT THEY WILL THERATEN AND THROW A PIECE OF BONE AND KNOWS HOW TO SHUT YOU DOWN.
PLEASE DO NOT BECOME THEIR PIECE OF ANIMAL.
THEY DO TREAT YOU LIKE ANIMAL. OR PROBABLY WORST THEN ANIMAL.
PLEASE SHARE YOUR THOUGHTS
Unfortunately state attorney general's will rarely get involved in franchise disputes, as they are not classified as consumer protection issues.
7-Eleven franchisees may want to contact franchisee attorney Jerry Marks at Marks & Klein because he is interested in possibly pursuing a class action on behalf of 7-Eleven franchisees. He is representing franchisee Sodhi but speaking to many others. Here's his info:
https://unhappyfranchisee.mystagingwebsite.com/resource-directory/franchise-attorney/jerry-marks/
United we stand, divided we fall.
Even the weak become strong when they are united
Unity without verity is no better than conspiracy
Customer Review for 7-Eleven, Inc.:
--------------------------------------------------------------------------------
22 of 24 people found the following review helpful:
Review:
September 5, 2011
Reviewer:
Frustrated 7-Eleven Mafia Franchisee from NY,MO,CO,TX,CA,WA everywhere.
Review Title::
7-Eleven A Very Bad Franchise, A Total MAFIA like Operation!.
Rating:
1 Star (or Unacceptable).
Review:
Dear Prospective Business Owners !!
I have been a 7-eleven Franchisee for past 2 years. This is a TOTAL MAFIA operation, please DO NOT fall for them. They mistreat their franchisees on different levels, neither good accounting infastructure nor maintenance infastructure.
They make various promises as you are signing up for their franchise but the ones who make the promise disappear or make a 360 degree turn on their commitment. Old stores and equipment which keep on breaking and expect you to get fixed and pay and on top of it have the audacity to ask and force you through their different cheap legal business tactics to keep shining their almost dead equipments around the store such as old hotdog grills, sandwich case , bathrooms , floor tiles etc.
They keep finding ways to charge its franchisees for various things and take their hardworking monies from them. On their mistaken charges it takes months and years to get your money back, their accounting ways and gross profit sharing is completely controlled by them like MAFIA like they have an on off button as to how much money you should make and keep slogging yourself like a modern day slave for their profits with no empathy of ones commitment to their family.
Their merchandise ordering system is again so slow and frustrating and their stupid FORMULA of ordering F+M-I=O which these idiots swear by and are so wrong about and embarrassed but cant even take it back. 7-Eleven idiots if F or Forcasting is wrong to begin with then nothing in left over formula matters and but these idiots cant even go back on their idiot ways of doing business.
I challange their President the very idiot Joe De Pinto to manage low profile store and employees on min. wage as a franchisee with no future for your employees and no family life, you will break and run away in 7sec and runaway in the 11sec. but its easy to sit in nice ac office with polished black shoes with your feet on table and allow this degree of disrespect for your current hard working franchisees and for future businessmen and investors who are considering investing their hard earned money with 7-Eleven in any way. SHAME SHAME on 7-Eleven the Mafia Convenience Store Business. Thank God for Heaven but 7-Eleven Mafia Corporate belongs in HELL, God If you are listening punish these idiots for their sins.
It took a lot of blood, sweat and tears to get to where we are today, but we have just begun. Today we begin in earnest the work of making sure that the world we leave our children is just a little bit better than the one we inhabit today
a franchisor is not the franchisee’s parent, and the franchisee is not the franchisor’s child. They are businesspeople in a contractual relationship – and that is the reality.
Fraud and Misrepresentation
Fraud in connection with the sale of franchises is so serious that the Federal Trade Commission and a third of the states have singled it out for special treatment under the law. In some states, it is a criminal violation. In all states, fraud is unlawful.
What is Fraud or Misrepresentation?
If your franchisor did not deliver the franchise that it told you it was selling, or if what you got is not what you bought, you may have a claim against your franchisor for fraud. Ask yourself these questions:
Did the franchisor, a broker or someone on the franchisor’s behalf talk about how much money you could make in order to get you to buy the franchise?
Did the franchisor tell you it had a “proprietary,” “unique” or “patented” system, product or service when it did not?
Did the franchisor tell you that its system was “proven,” but you’ve since found out it’s not – or the franchisor has changed the system so that it’s different from what you were told?
Were you promised training, support and assistance that never materialized?
If the answer to any one of these questions is yes, or if you feel you’ve been misled in some other way, then you very well might be the victim of fraud.
What are my rights?
If you’ve been victimized by franchise fraud, you have the right, in most cases, to obtain damages in an amount that will put you back to the position you were in before you bought the franchise. In some states, you may have the right to multiple or punitive damages. In many states, you have the right to sue not only the franchisor, but also its owners and officers.
Investor Protection and Securities Bureau
New York State Office of the Attorney General
120 Broadway
New York, New York 10271
(212) 416-8200 (phone)
(212) 416-8816 (fax)
COMPLAINT FORM
Consumer Hotline For Hearing Impaired
1 (800) 771-7755 TDD (800) 788-9898
http://www.ag.ny.gov
Instructions for filing a complaint:
1. Please type or print clearly
2. Please complete the entire form
3. Please enclose copies of any documents relating to this complaint
1. YOUR NAME: 2. DATE:
3. YOUR ADDRESS:
4. HOME PHONE: 5. BUSINESS PHONE:
6. COMPANY NAME:
7. COMPANY ADDRESS: 8. COMPANY PHONE:
9. SALESPERSONS NAME:
10. DATE OF TRANSACTION: 11: NATURE OF INVESTMENT:
12. TOTAL AMOUNT OF INVESTMENT: $
13. DID YOU COMPLAIN TO THE COMPANY?
YES NO
14 IF YES, WHEN?:
15. TO WHOM DID YOU COMPLAIN?
16. DO YOU HAVE AN ATTORNEY?
17. IF THERE COURT ACTION PENDING?
18. DID YOU RECEIVE THE SECURITY YOU PURCHASED?
19 FULLY EXPLAIN THE NATURE OF YOUR COMPLAINT:
Signature: __________________________________________________
Date:______________________________ Complaint taken by ____________________ ( ) Mailed in
Return To:
Investor Protection and Securities Bureau
New York State Office of the Attorney General
120 Broadway
New York, New York 10271
For those Field Consultants that think a 711 Franchise is such a great business to OWN, get a life. Did your Market Manager tell what to write?
Are you afraid of losing your job like the most of FC's I know? Most HATE their M Ms . Some say It is a job they don't wish on anyone to have, but they have families to feed.
I am a successful Franchisee that has been around before and after 2007 people took over, so I know what I am talking about , at least I felt I OWNED a business not a job. I made more money by making my own decisions and felt it was part of a partnership. FCs were able actually to work with us understanding we were INDEPENDENT business partners.
How is the turnover rate on FC's nowadays? Do you know? Check it out it will tell you a lot about 711.
Recently I have seen to many of my fellow franchisees HURT AND LIED by 711 to let no response to your comments.
if you purchase a 7-Eleven FZ store, do you get any money from the ATM's - if so how many transactions per month. Do you get a percent of the ATM fees- or does SEI keep all this money?
Also - how much money do you make from Redbox machines per month or quarter on average?
You get a "piece of the piece" ....I get 700-800 dollars a month on ATM not sure how many t-counts that is and about 200 on red box in both cases 7-11 adds this to the GP calculation and takes half, plus out of that revenue stream SEI takes a rent and utility "fee" before sharing anything with store.
"A piece?'.....more like a sniff and a lick of the scoop at a Friendly's after they make a big sundae.
I love my 2 stores and income and at 4300000.00 and 38gp one just has to work the system and yes its not what we thought but my family is all working together to over come issues that run very deep...
Thank god we have a strong FOA team, helping us
The posts from FC are fair, but are complaints are fair also, 7-11 shouldn't sell off stores that they know the new FZ can not make earning.
the gas income is a joke, I sell a total of 300000+ gals a month and takes a lot of work and maintiance to keep up the grounds
But I sell any product I wish, delete any product that doesn't, I sell beer and cig but that isn't the goal... hotfood and coffee soda slurpee
small coffee 1.00 not 1.25, and they leave me alone