Franchise Deep Dive: 7-Eleven Franchise Costs, Fees, Profit and Data

Company overview

7-Eleven is the world’s largest convenience store and has grown into a franchise empire. With over 83,000 locations worldwide, there seems to be a 7-Eleven store on almost every corner. In fact, it has been said that a new 7-Eleven store opens every three hours.

7-Eleven is often thought of as one of the biggest power players in franchising, having a huge network of owners and a wide-ranging consumer base. The company has achieved brand recognition that reaches places around the world and has received many industry awards over the years.

7-Eleven traces its roots back to 1927 in Dallas, Texas, when several icehouse companies merged to form the Southland Ice Company. Eventually, one of the icehouses also began selling food items, which led Southland Ice to start general retailing. During the Great Depression, the company went through bankruptcy. However, it came back in 1933 with a new emphasis on food and drink.

In 1946, the stores were renamed 7-Eleven after their extended hours of operation: from 7:00 AM to 11:00 PM, seven days a week. Around the late 1950s, Southland began to expand beyond Texas, opening 7-Eleven stores on the East Coast. In 1963, some outlets stayed open 24 hours a day. The following year, the company began to franchise its stores.

Today, there are over 83,770 locations around the world, more than 13,000 of which are franchised or licensed. In January 2022, the brand hit a major milestone: 77,711 7-Eleven stores open and serving customers worldwide.

In early 2023, it was reported that visits to 7-Eleven were outpacing pre-pandemic levels as the brand continued to grow. One of the brand's big pushes for growth over the last few years has been its “Evolution” stores, which offer in-store restaurants and premium products such as cigars, craft beers and wine cellars. The first Evolution store opened in Dallas in 2019, and the chain has since added more locations across states including Texas, New York, Washington, D.C., Virginia and San Diego.

Franchise options

There are three types of single-unit and multi-unit opportunities available for prospective 7-Eleven franchisees. The options include:

• Traditional: This model is tailored to streamline processes and leverage the scale of business so franchisees can get up and running – and have room to grow. 7-Eleven leases the store, land and equipment to the owner and provides training and support.

• Multi-Unit: This business model makes it easy for franchisees to franchise multiple stores. Thirty-three percent of current 7-Eleven franchisees are multi-unit. Qualified franchisees can convert more than one store from day one, or they can start with a traditional option and build their way up.

• Business Conversion Program: An option for someone looking to convert existing properties — such as a gas station, liquor store, deli, convenience or small grocery store — into new 7-Eleven stores.

• Non-Traditional Stores: This option is available to those who want to open in a non-traditional location, such as a rail station or airport.

Notably, 7-Eleven has been reimagining its stores with ongoing launches of its Evolution Stores. The brand uses each of these locations to gain an understanding of what shoppers are looking for in their respective markets, and these insights inspire innovation and development for the franchise as a whole.

Each Evolution Store offers its own take on the concept of convenience retailing. In Dallas, for example, the location has customizable beverage options, a premium cigar humidor and an in-store Laredo Taco Company.

Earnings for 7-Eleven franchise owners are not publicly available. This information can be found in Item 19 of the brand's FDD.

Franchise costs

A 7-Eleven franchise can vary significantly in price. Fees can range depending on several factors, such as location, products sold, and more. Depending on the store’s location and model, an average 7-Eleven store can range anywhere from $47,050 to $1,165,400, according to Vetted Biz.

Here’s a look into some of the costs:

• Initial Franchise Fee: up to $1,000,000

• Training Expenses: up to $9,000

• Down Payment for Opening Inventory: $20,000

• Additional Opening Inventory: $15,100–$44,500

• Cash Register Fund: $500–$1,500

• Store Supplies: $500–$2,500

• Licenses and Permits: $8,000–$10,000

• Insurance: $1,500–$7,500

• Grand Opening Fee: $8,000

• Additional Funds During First Three Months: up to $60,000

7-Eleven notes on its franchise development website that its franchise fee varies by location. Entrepreneur reports that this number can go up to $1,000,000.

For those that qualify, 7-Eleven has an internal program that provides up to 65% financing on the initial franchise fee. This program also provides an open account (or financing) for the inventory purchases and operating expenses of your store. The amount financed generally fluctuates from month to month based on sales, inventory, purchases, operating expenses, and withdrawals from the store’s open account.

• Joe DePinto - CEO

• Stanley Reynolds - President

• Doug Rosencrans - Executive Vice President and Chief Operating Officer

• Sean Duffy - Executive Vice President, Fuels

• Marissa Jarratt - Executive Vice President, Chief Marketing and Sustainability Officer

• Jesus Delgado-Jenkins - Executive Vice President, Chief Merchandising Officer

• Ken Wakabayashi - 7-Eleven International (7IN) Co-Chief Executive Officer

• Treasa Bowers - Senior Vice President and Chief Human Resources Officer

• Lillian Kirstein - Senior Vice President, General Counsel and Secretary

• Kristen Cook - Vice President and Chief of Staff

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