7-Eleven is selling company stores to franchisees

November 18th, 2008, 6:00 am · 1 Comment · posted by Jan Norman, small-business columnist

Convenience store chain 7-Eleven is aggressively converting most U.S. company-operated stores into franchised operations by 2012.

Existing 7-Eleven store managers were offered the opportunity to buy existing stores. The offer is now available to the public.

Nationwide, approximately 4,100 of 5,600 7-Eleven stores, 75%, are now franchised.

I previously wrote about 7-Eleven’s strategy to expand in Orange County through its “Business Conversion Program.” At that time, spokeswoman Margaret Chabris said only about 5% of local 7-Elevens are company owned. Click here to read about that program, in which a business owner with at least 2,000 square feet - it doesn’t have to be an existing convenience store - can apply to convert to a 7-Eleven.

For franchisees, 7-Eleven provides the land, building, equipment and a turn-key operation. The average up-front, total investment for a 7-Eleven franchise is between $175,000 and $250,000, although this amount may vary significantly by store and region of the country.

Unlike other franchise models that take a percentage of sales, 7-Eleven and franchisees split gross profits approximately 50-50, says spokeswoman Margaret Chambris.

“7-Eleven originated the convenience store concept, and has the infrastructure, tools, technical support and everything necessary to support the franchisee,” said Dennis Lane, a 34-year 7-Eleven franchisee and chairman of the National Coalition of Associations of 7-Eleven Stores.

You might not be able to find a company store to buy in Orange County, but if you’re interested in other locations, click here for more information. Or call 800-255-0711.

More franchising stories…