Most of the franchises available for sale are existing stores. Initial costs vary from store to store but range from $250k to $800k+. We will provide specific store information once you have completed the on-line application form and have been invited to attend your first interview.
The initial costs are made up of the following elements:
The application fee is a small non refundable payment to cover initial training and uniforms. This is payable once your application has been approved and you decide to go ahead with a 7-Eleven franchise.
The franchise fee will vary from store to store and is normally a percentage of the store's merchandise gross profit for the preceding financial year. The franchise fee pays for the use of the 7-Eleven brand and system for the term of the franchise agreement which is up to a maximum of ten years.
When buying an existing store you will need to agree a "goodwill payment" with the existing franchisee. The goodwill payment is negotiated with the existing franchisee independant of 7-Eleven, and reflects the profitability of the store, the remaining lease term as well as any associated risk.
You will also need to buy the existing merchandise stock in the store. On the day you take control of the store,
7-Eleven will organise for the stock to be audited by an independent company so you know the value of the stock you are buying. Only stock that is in the current 7-Eleven range will be counted. The minimum capital amount required for stock is $45,000. The difference between the stock on hand value and the minimum capital amount may be funded by the 7-Eleven Open Account.
Once the initial set up costs have been paid for, 7-Eleven and the Franchisee share the gross profit dollars generated each month from merchandise sales. This is known as the "7-Eleven charge". The 7-Eleven charge is currently 57% of the gross profit dollars.
In addition to the 43% of the gross profit from merchandise sales, franchisees in petrol stores receive a commission from the sale of petrol, based on the number of litres sold. This commission pays for processing of sales, cleaning the forecourt and pumps as well as providing water, soap, paper towels and squeegees for customers.