IRVING, Texas — 7–Eleven Inc., with more than 77,000 convenience stores worldwide, has signed a master franchise agreement with Electra Consumer Products Ltd. to develop and operate 7–Eleven stores in Israel. The expansion marks the 7-Eleven brand’s first entry into Israel and will be the 19th country in which 7-Eleven stores will operate.
The companies expect the first 7–Eleven stores in Israel to open in Tel Aviv in 2022. By the end of 2024, Electra is expects to invest more than $18.62 million in branding and opening of 7-Eleven stores in Israel.
Electra is a subsidiary of Elco Ltd., an Israeli company with a multi-faceted portfolio of business interests.
“When looking to enter a new retail segment, we knew we wanted a company that had the experience and international reputation to deliver a first-class experience for Israeli customers,” said Electra Consumer Products CEO Zvika Schwimmer. “7-Eleven introduced the world to convenience retailing and, today, is the undisputed international leader in the industry. As we begin to introduce 7-Eleven stores to neighborhoods across Israel, we are dedicated to offering the best shopping experience and products available.”
He added, “The entry of 7-Eleven into Israel is another significant factor in making Electra's food division a rising force in the food market in Israel. We strive and anticipate that 7-Eleven, as having international experience and reputation, will ensure a first-class experience for Israeli customers.”
Under the franchise agreement, the parties agreed that the franchise period would be 20 years, with an option to extend the period for another 50 years. The franchise agreement includes the payment of an initial amount and monthly payments that will be paid as a percentage of the total income of the franchise activity in Israel.
The agreement includes commitments from Electra Consumer Products to 7-Eleven including on issues of non-competition in the field of convenience stores, restrictions regarding a change of control and a commitment to comply with the financial terms set forth in the deal.
7–Eleven will support Electra Consumer Products to implement and localize the brand’s retail business model.
“With its vibrant growing population and continued economic expansion, Israel presents an ideal location for 7-Eleven stores to grow,” said 7-Eleven Inc. President and CEO Joe DePinto. “Our strategic relationship with Electra Consumer Products will bring 7-Eleven’s brand of convenient products and services to millions of Israeli consumers.”
The announcement follows a similar agreement earlier this month in India.
Countries and regions with a 7-Eleven presence include the United States, Canada, Mexico, Japan, Thailand, South Korea, Taiwan, China, the Philippines, Singapore, Malaysia, Viet Nam, Cambodia, Australia, Norway, Sweden and Denmark.
Electra Consumer Products, Rishon LeZion, Israel. operates through four business segments: consumer electronics products, electronics retail, cellular communications and investment property.
Based in Irving, Texas, 7-Eleven operates, franchises or licenses more than 77,000 stores in 18 countries and regions, including 16,000 in North America. In addition to 7-Eleven stores, 7-Eleven Inc. operates Speedway, Stripes, Laredo Taco Company and Raise the Roost Chicken and Biscuits locations.