IRVING, Texas -- 7-Eleven Inc.’s Zero Franchisee Fee Initiative will end Sept. 30, 2017, the company has announced. Until then, 7-Eleven will waive the franchise fee, a savings of up to $80,000, on select U.S. convenience stores available to franchise.
7-Eleven introduced the zero-fee program in 2015 following a period of rapid growth and brought it back in 2016. During that time, the company franchised more than 200 c-stores. About 200 more eligible stores, located in metropolitan areas across the country, are available to franchise in cities such as Buffalo, N.Y., Richmond, Va., and Jacksonville, Fla.
"The Zero Franchise Fee program has been successful on several fronts," said Larry Hughes, vice president of franchise systems for 7-Eleven. "It has provided an attainable, affordable entry point for many people wanting to go into business on their own. The company has gained greater diversity with more military veterans and Hispanics joining the franchisee family. And existing franchisees have taken the opportunity to acquire additional stores."
The retailer is offering these stores to prospective, qualified franchisees, as well as existing 7-Eleven franchisees who want to grow their retail business by adding stores. Prospective franchisees for zero-franchise-fee stores will undergo the standard 7-Eleven franchise approval process, which can take anywhere from five to seven months.
Basic 7-Eleven franchisee qualifications include being 21 years or older and a permanent U.S. resident, and having excellent credit and $50,000 in liquid assets. Prospective franchise owners will still be responsible for the costs of licensing, permits and the initial down payment on inventory, totaling about $30,000.
After an acquisition and rebranding, 7-Eleven works to establish a local customer base before looking to transition these stores from company to franchise operations, the company said.
After extensive training, 7-Eleven franchisees open their doors with a fully equipped and stocked store with intuitive retail technology, merchandising and advertising support, national and private-brand products, and recognizable brands such as Slurpee and Big Gulp drinks, the company said.
Because these stores typically have lower sales volume compared to the national average, they may qualify for additional limited-time financial support.
This year marks the 53rd year of franchising for the world's largest convenience-store chain. Today, franchisees operate almost 90% of the 7-Eleven stores in the United States. Based in Irving, Texas, 7-Eleven operates, franchises or licenses more than 63,000 stores in 18 countries, including 10,900 in North America. It was ranked the No. 1 chain in CSP's 2017 Top 202 list of the largest c-store companies in the United States.
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