Do you often find yourself typing and search for the 7-11 near me? 7-Eleven is our go-to convenience store when it comes to snack, food, beverages, gas, and almost anything that we need. But don’t you know that it is one of the most profitable businesses for an Overseas Filipino Worker?
Yes, you heard it right. If you are an OFW who is looking for a business with a higher return on investment, 7-Eleven is a good choice. If you are looking to franchise a 7-Eleven in the Philippines, here are relevant information that can help you. Read on to understand how to franchise, how much you need, and who to get in touch with to start opening your own 7-Eleven store franchise in your chosen place.
More About 7-Eleven
Back in 1927, a company in Texas named Southland Ice Company pioneered in the convenience store concept where they are selling eggs, bread, and milk after store hours. The company changed its name to 7-Eleven in 1946, reflecting the store’s operating hours from 7 AM to 11 PM.
The Philippine Seven Corporation (PSC) acquired the license for 7-Eleven to operate in the Philippines in 1982. In 1998, the PSC opened its doors for franchising and in 2000, they partnered with a Taiwanese company for expansion plans. PSC also started to partner with Chevron Philippines, also known as Caltex, to convert their Mini Mart to 7-Eleven stores in 2010. And in 2012, PSC launched the Store of the Future design and started building its expansions in Visayas, particularly in the city of Cebu.
How Many 7-11 near me?
There are a lot of 7-Eleven stores in the Philippines alone. From the company’s website, as of December 31, 2017, there are already 2,287 stores around the country.
Company Owned Units: 1,033
Franchised Units: 1,254
How Much is the Franchise Fee?
The franchise fee for a 7-Eleven store is P600,000 and must be paid immediately upon the approval of your application.
Total Franchise Investment
Other than the franchise fee, there are also other costs that the franchisee needs to pay. These fees include the following:
Initial Store Supplies: P170,000
Initial Merchandise: P800,000
Construction Cost: Approximately P2.03 Million
Advance Rent and Deposit: Depending on your lease terms. This should be settled before the opening of your store.
In total, the cash that the franchisee needs to invest ranges from P3.5 Million to 5 Million Pesos. Also, take note that the amounts here are estimates and does not include the 12% VAT.
What Are the Inclusion of the Package?
The standard package inclusions, after approval and payment of the franchise fee and other costs, include the following:
- Use of the company logo and name
- Construction of the store
- Advance payment and deposit for rent
- Initial merchandise
- Franchise fee
- On-going support
- Equipment maintenance
How long will I get the amount I invested?
The expected payback period for a 7-Eleven franchise investment is about 3.5 to 4 years. The actual payback period is still depending on a number of factors including your location, foot traffic, products sold, and store costs.
The New Franchise Offer
If you don’t have enough money to pay for the investment cost and franchise fee, 7-Eleven also offers a new franchise offer. The franchisee only needs to pay P300,000 to take over an existing corporate store. That is, if the outlet is already opened and PSC is already operating it for at least a year.
This P300,000 is a deposit or “franchise fee” which may be returned to the franchisee if and when the contract is terminated without any violation. This amount is not the only cash outlay that you need to shell out in order to continue the store’s operation. The owner also needs to spend other things such as the employees’ wages, inventory stocks, and other store operating costs. PCS is also offering to waive charges for maintenance and electricity.
Profit Sharing Scheme
The big question is: how much will franchisees earn?
7-Eleven franchises follow a revenue business model where the gross profit of the store is split between PSC and the franchisee.
However, with the reduced P300,000 franchisee package, the profit share for the franchisee will be lowered compared to the standard franchising package. This is because the standard store franchisee fee is more expensive and there are higher operating costs associated with running the store.
Who Should I Contact?
If you are interested in 7-Eleven franchising offers, you may contact the Philippine Seven Corporation for more information:
The Franchise Manager
Philippine Seven Corporation
7th Floor, Columbia Tower, Ortigas Avenue, Mandaluyong City
Hotline: +63 (02) 726-9968
Fax: +63 (02) 705-5229
Mobile: +63 (920) 950-8651 or +63 (917) 871-1686