Notes

7-eleven
https://prezi.com/6tgfe0ihbgh3/gh/

Q: 1
http://www.franchisedirect.com/retailfranchises/7-eleven-franchise-07012/ufoc/

Q: 2
http://franchise.7-eleven.com/franchise/faq

The first place ranking in Convenience Store News’ Top 100 Franchise Chains for 2005 What does the initial franchise fee cover?

A Franchisee is required to make an initial cash payment to
7-Eleven in an amount equal to the cost of the store's initial inventory, supplies, business licenses, permits, bonds and cash register fund. 7-Eleven also buys the store equipment and pays the utilities. Does it include a starting inventory of supplies and products? The 7-Eleven Franchisee is responsible for ordering, buying and maintaining inventory; hiring and training employees, as well as payroll, cash variation, supplies, certain repairs, maintenance and other controllable in-store expenses How are the periodic royalties calculated and when are they paid?


Monthly financial and marketing records prepared by 7-Eleven for the Franchisee's individual store, including profit-and-loss statements, balance sheets, etc. $900,000 * 36% GP * 49% split = $158,800 GP
$158,000 - $108,000 expenses = $50,000 income

$1,300,000 * 36% GP * 48% split = $224,600 GP
$224,600 - $156,000 expenses = $68,000 income

$2,000,000 * 36% GP * 47% split = $338,400 GP
$338,400 - $240,000 expenses = $98,000 income All names and trademarks are legally protected by the company The 7/11 Franchisee gets to choose their location, but it does have to be approved by the company Are you assigned an exclusive territory?

The franchisee does not receive an exclusive territory with the 7-Eleven franchise. The franchise agreement covers a single 7-Eleven store location designating a specific street address, and has no rights to additional franchises Even if it isn't an exclusive territory, the franchise still doesn't have the right of first refusal on additional franchises established in nearby locations Is the franchisee required to purchase equipment and supplies from the franchisor?

7-Eleven, Inc. owns or leases the land on which the 7-Eleven store sits. The company develops the building, provides the store equipment and pays the utilities. A 7-Eleven franchisee does not own the property, store or equipment, but rather, leases or subleases it from 7-Eleven, Inc. as part of the franchise agreement.
Under what conditions can the franchisor and/or the franchisee terminate the franchise agreement?

Terminating your 7 Eleven contract is available with a fee of up too $2,500. Who provides and pays for advertising and promotional items?

7-Eleven may provide various forms of advertising for the 7-Eleven® stores as well as its products and services, ranging from broadcast and print media to point-of-sale signage. In addition, 7-Eleven also may support some of the Franchisee's promotional and community relations endeavors. What is the minimum amount of profits that the company will take?

7/11 will take a minimum of 50% of your profits plus an extra 2% spent on advertising