7 Eleven Store Franchise in India

Picture of the Andheri 7-11 store

The above is an RRVL outfit, Reliance Retail’s franchise store launched on 9th October 2021. Kishore Biyani’s Future Group was to crack the deal initially, but it fell through, and RIL took over.

How to Get the Franchise

With a string of startups gaining a lot of ground in a much lesser period, the stipulated time of growth has evolved a lot more.

Today growth does not essentially depend on the stature of the promoter or his historical background. Instead, it reflects more on the quality of the product that he delivers.

Seven-Eleven would like to interact with a growth-minded entrepreneur to initiate the franchising process. A successful franchising history will add to their advantage, but it may not be considered essential.

Five to ten years of multi-unit management experience, preferably in the retail or food chain industry, would be worthy of merit. 

Process of Applying for the Franchise

• You must comprehensively check your business background and successfully emerge through it.

• Any other business interest that could be a deterrent to implementing the Seven-Eleven business concept may be found unacceptable to the administration.

• A Franchise Sales representative will invite you for a business meeting.

• You could have an opportunity to discuss with the Franchise Sales Representative your business result and apprehensions, if there are any.

• You select your locality and the community that you have decided to look after.

• Sign the offer if mutually found acceptable.

• Get set for a training programme with your colleagues for in-store training for six to eight weeks of COOL (College Of Operational Leadership).

Documents Required

The following documents are required to post the agreement favouring the start of the franchise:

• The Franchise Disclosure Document (FDD) is a mandatory requirement to be issued after being disclosed to the franchisee.
  The FDD that is considered to be ideal should provide legal protection and competitive positioning to the franchise owner on his way to success.

• State Disclosure Documentation is when you position your franchise in states that have enacted their franchise requirements and require special supplements to support the FDD.

• Certain other franchise filing states require a separate form to be filled to notify the conditions of a franchise business in the state for claiming state exemption for business opportunities set up locally. 

• Operation Manual is an important and confidential document. It is a manual that may be utilised to train, support and inform franchisees about system standards.

• Financial Statements are required to provide prospective franchisees with an opportunity to evaluate the company’s track record and any potential financial risks before making any investment.

Training

The training commences after a three-day orientation in Dallas. Then, as it concludes, each franchise can be assured of the running of its 7-Eleven store.

The training programme is christened COOL (College Of Operational Leadership). COOL is a skill-based training programme designed to provide skills based on specific requirements to run the business.

The program comprises classroom training, self-paced workbooks, e-learning modules and valuable hands-on experience. Therefore, it is imperative that the training is attended by a staff member of the franchisee who would be skilled as well.

COOL consists of five to eight training programmes where every aspect of management of a franchise store will be dealt with, including forecasting sales, stocking, pricing, and food preparation.

Requirements for Starting a 7/Eleven Store Franchise

• A US citizenship (or permanent residency) is essential 

• You should be at least 21 years old.

• You should undergo an exhaustive background check regarding your future interests and leanings toward business.

• Your focus on other businesses can put the 7-Eleven store in jeopardy. Hence you should have sufficient strength in terms of management staff to focus solely on the 7-Eleven business concept.

Competition in the Market

The competition will arise from other convenience stores selling the same goods in the same line of business. Stop-N-Go is an able competitor that has the potential to dent the 7-Eleven market.

7-Eleven will likely face stiff competition from Dunzo, Swiggy, and Grofers. This is because they are developing their late-night delivery infrastructure to cater to customers who would like to be served at such hours.

Similarly, competition exists from other convenience stores that operate for extended hours like Walmart, Subway, Circle-K stores, and Taco Bell, where people often go for a late-night snack.

Investment Required

The Investments required as per the 7 eleven franchise cost :

Liquid Capital: Liquid cash is the money that exists with you, or you have easy access to without obtaining it through other agencies like a loan. 

• Requirement is $50,000

Net Worth: Your net worth would be the value of your assets like cash, property, savings and others. Net worth would also mean deducting your total debts and liabilities.

• Requirement is $150,000

Franchise fee: This is 7-eleven store franchise in India cost for obtaining the franchise.

• Requirement is $0 - $1,000,000

Total Investment: Payment over time to get the franchise operational.

• Requirement is $37,200 - $1,635,200

The royalty fee will amount to at least 50% of the gross profit. 

Minimum Earnings and Profitability

The earnings of the franchises vary due to various reasons:

• Location: Location is of primary importance. Having a parking lot and thereby easy access to the place is essential. However, one must consider the area's cost while deducing the profit. 

• Products: The product must be in sync with the customer's liking. However, the products that 7/11 stores sell are liked by many; there is a lot of variation among the tastes of people across the globe.
  
  For example, if fresh fried chicken, onigiri and karaage are aligned to people’s likes in Japan, the US will prefer chips, cookies and biscuits more. 

• However, the food has to be microwaveable and hence readily consumable. That’s the reason it's called a convenience store.

In terms of profit, a 7-Eleven franchisee makes an average of around $50,000 - $75,000 monthly.

Financial Aid

It is essential for the franchisee and the brand to facilitate the financing project. If you are new to franchising, you have seven ways to serve your financial cause with greater ease and safety.

• Small Business Administration (SBA) registry: It would help the franchisor assist the franchise with finance and identify your financial capability as a franchise.
  The processing of loan applications is faster with SBA’s help, as many other franchisees are also registered.
  
  

• Providing a Bank Credit Report: A bank credit report to the lender would be more accessible to verify the borrower’s capability to service the lending.
  
  

• Listing Suitable Lenders: The brands have a list of lenders whom they have short-listed. They include all the lenders who have successfully provided funds to other franchisees.
  
  

• Matching Franchisees with Lending Facilitators: The Franchisor has an in-house financial expert who can guide franchisees to acquire loans or partner with a loan broker to help finance the project.
  
  

• Building Strategic Relationships with Lenders: The franchise brands could strategically partner with lenders to allocate funds to qualifying franchisees.
  
  

• Guaranteeing loans for Franchisees: Some brands offer to stand guarantee for loans provided to the franchisee. However, in lieu of a more profound understanding between the brand and the franchisee,
   
  the company takes the responsibility to pay back some of the loans in the event of default by the franchisee. The payback in this arrangement would be based on the trust factor.
  
  

• Providing Internal Financing: Many companies have started financing internally for franchising their products.

Benefits of 7-Eleven Store Franchise

Seven-Eleven is a globally recognised brand, well known and cherished by all. You can rely on its support at every step of your journey.

• A 7-Eleven franchise could be your own business, but it sells products from 7-Eleven. Hence you can expect support at all levels, from the setup, training, marketing, and even maintaining the books of account.
  
  The growth of your franchise is akin to the brand's development.

• The brand will help you choose the location where the customers can be found store layout that creates comfort for the customers and the food products.

• The 7-Eleven team will provide training in all formats in running the store. The activity could run for almost seven weeks.

• We will provide the supply chain along with the marketing expertise.

• The financial success of the brand is directly connected to the success of the franchises too. Therefore, since there is a mutual benefit, it is necessary to support the franchise.

Contact Information

Phone:  1 800-782-0711
Mail: franchise.inquiries@7-11.com
Site: http://franchise.7-eleven.com

Conclusion

The seven-Eleven franchise will be here for a long time. A convenience store is a modern concept that could serve millennials. These are times when food is generally had, based on the leisurely hour than on the need.

Therefore, the faster it is done, the merrier. You tend to enjoy fast foods more during work hours and eat leisurely only at weekends. As you work five days a week, the fast-food industry makes abundant money. 

I hope you liked our article on 7-eleven store franchise in India, if you have any comments or suggestions do share them in the comments below. 

Frequently Asked Questions (FAQs)

1. How much does the 7/11 franchise cost?

To meet the 7-Eleven franchise requirements, you have to have liquidity worth $50,000, and your net worth should be around $150,000. The franchise will cost you to the extent of $1,000,000.

Including the site, training and other costs will be in the region of $1,635,200. 

2. How much does an owner of a 7/11 make?

If the locality is central and the product matches with the likes of the people, we can expect an earning of $50,000 - $75,000 a month. 

3. Is owning a 7/11 franchise profitable?

The profits depend on the store's location and the kind of products you sell in that location. For example, a centrally located store with car parks can expect a profit of $50,000 to $75,000.