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CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
CONFIDENTIAL
Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An...
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Franchising | Entrepreneur Roadmap | 7 Eleven

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7 Eleven presents at the Washington, DC Economic Partnership's (WDCEP) Entrepreneur Roadmap Starting a Franchise seminar (5/14/14).

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  • Welcome!
    Thank you for spending your precious time with us today.
    Introduction
    Housekeeping
  • While there are many convenience stores today, the industry’s roots lie with 7-Eleven.
    In 1927, the first convenience store was born from an ice dock.
    With refrigeration, came a decrease in the demand for ice.
    An innovative employee began selling milk, bread and eggs on evenings and Sundays when other retailers were closed.
    Customers wanted more food products and the products they asked for were added, again responding to the customer’s requests and needs.
    Customers were grateful for the convenience.
    7-Eleven’s founders based their business model on the saying “Give the customers what they want, when and where they want it.”
    Thus, the convenience concept began.
    And today…………(next slide)
  • …and today, 7-Eleven is the largest convenience store chain the world. Our franchise system is founded on a well-recognized global system.
  • Our vision is to be the best retailer of convenience.
  • Our entire business is built upon the guest and everything we do is in an effort to serve our guests.
    All of the individuals in the company support the stores so the stores can meet the needs of our guests. Each Guest spends $600 per year!
    We are a franchise company and there is an extensive network of support in place to assist and support you as you work directly with your guests.
  • Store Operations revolve around our 5 fundamentals.
    Which do you think is most important from a guest perspective? Assortment – always in stock – topsellers.

  • 7-Eleven’s Focus is Fresh Foods.
    Food service is a Trillian $$ industry. Cigarettes is a $40 Billion $$ industry.
    We are positioned to deliver quality fresh food 24 hours a day.


  • Important that you understand the importance food service sanitation and safety procedures.
    Your responsibility is to cascade that training down to your team.
    Staff appearance also very important when trying to grow food sales.
  • All stores are equipped with a state of the art information system – part of the equipment package.
    Ordering and reporting system.
    Helps you maintain a balanced inventory – identify top sellers and delete dead items.
    Payroll
    Accounting – You don’t need a business accountant!
  • For more than 50 years 7-Eleven has received numerous awards and recognition.

    Talk about 7-Eleven’s differentiation and why it is always ranked high in the industry (growth opportunities for franchisees, infrastructure, customers first, lots of corporate support, new initiatives).

  • In House financing available for Fee only – 9-12% interest rate.
    Book Inventory determined the day of Changeover – 7-Eleven finances at 5.25% interest rate or prime + 2.
  • Now let’s take a look at the financial picture:
    Most franchise systems require royalty payments based on a percentage of sales. However, You and 7-Eleven , Inc. both have a stake in the store’s profitability. If you are profitable, we are profitable!
    Since we share in the Total Gross Profit $$ - you must purchase 85% of your inventory from recommended vendors – explain.

    7-Eleven, Inc.’s gross profit share is called the 7-Eleven Charge.

    If needed:
    Definitions:
    Net Merchandise Sales includes all product sold inside the store including all commission sales.
    Cost of goods is defined as the cost of all product purchased from a vendor for resale, the cost of all supplies used in the resale of the product, minus applicable discounts and allowances received from the vendor.


  • Example of how the Royalty on Gross Profit works:
    As gross profit grows, the 7-Eleven charge may increase , but only on the incremental gross profit dollar increase.
  • Your Net Income depends on how well you:
    Satisfy your customer needs,
    Implement 7-Eleven operating principles,
    Recruit and develop top-rate customer focused staff who can effectively communicate with the guests,
    And monitor your sales trends while managing your expenses.

    From your percentage of the GP split, you have the following responsibilities as part of the 7-Eleven System…
  • 7-Eleven uses their share of the GP$$ to help you build your business by reinvesting in the Business System.

    #1 – Turn Key Operation when you franchise.
    #2 – Most Trusted Brand in convenience with the most known Iconic products - Slurpee
    #3 – Training and Ongoing Support
    #4 – Weekly Field Consultant Visits
    #5 – Supply Chain that delivers fresh food every 24 hours
    #6 – State of the Art Computer/Information System – Reporting and Reports
    #7 – Advertising Support




  • 7-Eleven, Inc.’s share of Expenses
  • 21
  • Discuss Next Steps
  • Thank everyone.
  • Transcript of "Franchising | Entrepreneur Roadmap | 7 Eleven"

    1. 1. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. Seminar
    2. 2. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 2 What We Will Cover • From the Beginning to the Future • The 7-Eleven Way • Our Retail Information System • 7-Eleven’s Franchise Model • Mutual Responsibility • Benefits of Franchising a 7-Eleven • Closing 2
    3. 3. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 3Beginning in 1927: The Convenience Concept “Give the customers what they want, when and where they want it.”
    4. 4. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 4 Around the Corner – Around the Globe Serving 6 Million Customers Daily (U.S.) 40 Million Worldwide Total U.S. Revenues $20.5 Billion Total Worldwide Sales $76.5 Billion Operating in 16 Countries 52,000 Stores Worldwide – Opening a new store every 2 hours!
    5. 5. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 5 Our Global Brand Strength
    6. 6. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 6 Our Vision To be the BEST Retailer of Convenience!
    7. 7. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 7 Our Mission To Consistently Serve the Changing Needs of Customers for their Convenience.
    8. 8. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 8 Our Focus “If we don’t serve the customer, someone else will.” Franchisees, Store Managers & Associates (Stores) Field Consultants Market Managers & Zone Leaders Store Support Center CEO Guest “To lead you must serve.” “These customers are not obligated to visit our stores.” – Masatoshi Ito
    9. 9. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 9 Our Five Fundamentals Assortment Service Quality Value Cleanliness
    10. 10. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 10 Our Fresh Food & Bakery
    11. 11. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 11 Our Grill & Hot Foods
    12. 12. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 12 Our Innovation in Technology
    13. 13. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 13 7-Eleven’s Franchise System Awards & Recognition: • Ranked #3 in Entrepreneur magazine's Franchise 500 list • #2 on Forbes’ Top Franchise for the Money • #1 in Store Growth by Convenience Store News • #2 on All Business Top 25 Franchise Opportunities for 2012 • G.I. Jobs magazine named 7-Eleven on the “Top 100 Military Friendly Franchises® 2012 list” • Recognized by U.S. Veterans Magazine as one of the Top 100 Veteran-friendly companies • Recognized by Retail Information Systems News (RIS) as an original retailing pioneer in “10 Retailers That Shook the World Part 2” • #4 among Top 100 Global Franchises by Franchise Direct Leader in the Franchise Industry for more than 50 years.
    14. 14. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 14 Franchisee’s Investment • Franchise fee • Down payment on initial inventory and supplies • Initial cash register fund • State & local licenses, permits & bonds • Goodwill (if applicable)
    15. 15. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 15 Our Financial Picture Your Share of Gross Profit 7-Eleven’s Share of Gross Profit - Less expenses = Your Net Income - Less expenses = 7-Eleven Net Income Net Merchandise Sales Cost of Goods Total Gross Profit=
    16. 16. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 16 7-Eleven Royalty GP Dollars $280,000 $350,000 $500,000 $600,000 $700,000 $1,000,000 Annual Sales $800,000 $1,000,000 $1,428,571 $1,714,286 $2,000,000 $2,857,143 % Margin 35% 35% 35% 35% 35% 35% 7-Eleven Charge 48.5% 49.0% 50.1% 50.9% 51.5% 52.8% Assumptions
    17. 17. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 17 The Financial Picture (cont’d) Your Share of Gross Profit - Less expenses = Your Net Income Net Merchandise Sales Cost of Goods Total Gross Profit=
    18. 18. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 18 Franchisee’s Responsibilities • Payroll, Payroll Taxes • Workers Compensation Insurance • Business and Inventory Taxes • Cash and Inventory Shortage • Your Share of Credit Card Fees • National Advertising Fee • Business Licenses and Bonds • Interest Expense • Telephone • Janitorial and Laundry • General Maintenance and Upkeep of Store Equipment • Common Area Maintenance • Store Supplies
    19. 19. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 19 The Financial Picture (cont’d) 7-Eleven’s Share of Gross Profit - Less expenses = 7-Eleven Net Income Net Merchandise Sales Cost of Goods Total Gross Profit= Reinvest in Business
    20. 20. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 20 7-Eleven’s Responsibilities • Land, Building, Equipment, Rent and Property Taxes • Utilities (water, gas, electric, sewer) • Record Keeping • Quarterly Audits • Individual Contractual Indemnification • Building Maintenance and repairs • Business Consulting • POP/Advertising Materials • Market Research and Product Selection • Price and Vendor Recommendations • Ongoing Store Support Services
    21. 21. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 21 21 Benefits of Franchising a 7-Eleven  Name Recognition  Turn Key Operation  Established Business System  Share in the profits system  A Leader in Support & Training  Daily Distribution of Fresh Foods  Leader in Technology Innovation  Continual Operational Support  Over 80 Years of Business Experience
    22. 22. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 22 Next Steps Apply Now! www.Franchise.7-Eleven.com/Apply-Now More Questions? 1-800-782-0711
    23. 23. CONFIDENTIAL Copyright © 7-Eleven Inc. 2014. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven Franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. 23 Questions? Oh Thank Heaven! Thank You!
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