Top 4 Reasons to NOT Buy a 7-Eleven Franchise

One of the brands we are frequently asked about is the 7-Eleven Franchise. 7-Eleven stores can be found on almost every street corner and they are one of the most visible franchise brands. Many people think that means it must be very successful, and that 7-Eleven stores will make you rich. But what does 7-Eleven's corporate success mean to you as an individual franchise owner?

If your dream is to buy a 7-Eleven and you really want to invest intelligently knowing both sides of the story let's look at 4 reasons you might not want to invest in a 7-Eleven franchise.

1. 50% or more of Profits to 7-11. 7-Eleven is an "Operator Model", or what we like to call "buying a job". So 7-Eleven buys the store, land, building and equipment and then leases it back to you - the franchisee. Despite the relatively large investment you will make, typically $150,000 or more 7-Eleven corporate will take close to or in same cases over 50% of your revenue. Franchise owners often find they have to work in the store themselves in order to make any money at all. Its interesting how 7-11 describes this arrangement on their website " A gross profit split means we are invested" and you can see in the image here. 7-Eleven in my opinion is misleading buyers by not disclosing they take at least 50% of your gross revenue upfront. And if you think 50% is bad wait until your store starts earning more money. Unlike many other franchises that reward you for doing well with a declining royalty - 7-Elevens fees go up the more money you make. so 52% 55% 56% and on and on. How much does a 7-Eleven store owner make? Well a lot dependson what you are selling as some items have much higher margins but a very approximate estimate is 5% of store sales so a store doing $1,000,000 in sales would generate about $50,000 for the owner. There are more accurate ways to forecast 7-Eleven franchise earnings but that will give you a ballpark. Now you know why you often see owners working in the stores. Cont.d: http://www.franchise.city/7-eleven-franchise/

http://www.unhappyfranchisee.com/7-eleven-on-unhappyfranchisee-com/
http://www.unhappyfranchisee.com/7-eleven-franchise-complaints/
https://conveniencestorenews.wordpress.com/2008/09/16/7-eleven-income-potential/

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