franchising | entrepreneur roadmap | 7 eleven

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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

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2What 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

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3Beginning in 1927: The Convenience Concept

“Give the customers what they want, when and where they want it.”

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4Around 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!

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5Our Global Brand Strength

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6Our Vision

To be the BEST

Retailer of Convenience!

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7Our Mission

To Consistently Serve the Changing Needs of Customers for their

Convenience.

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8Our Focus

“If we don’t serve the customer,

someone else will.”

Franchisees, Store Managers & Associates (Stores)

Field Consultants

Market Managers & Zone Leaders

Store SupportCenter

CEO

Guest

“To lead you must serve.”

SE

RV

ICE

“These customers are not obligated to

visit our stores.”– Masatoshi Ito

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9Our Five Fundamentals

Assortment

Service

Quality

Value

Cleanliness

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10Our Fresh Food & Bakery

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11Our Grill & Hot Foods

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12Our Innovation in Technology

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137-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.

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14Franchisee’s Investment

• Franchise fee• Down payment on initial inventory and supplies• Initial cash register fund• State & local licenses, permits & bonds• Goodwill (if applicable)

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15Our 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=

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167-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

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17The Financial Picture (cont’d)

Your Share of Gross Profit

- Less expenses

= Your Net Income


Cost of Goods

Total Gross Profit=

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18Franchisee’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

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19The Financial Picture (cont’d)

7-Eleven’s Share of Gross Profit

- Less expenses

= 7-Eleven Net Income


Cost of Goods

Total Gross Profit=

Reinvest in Business

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207-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

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21

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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

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22Next Steps

Apply Now!www.Franchise.7-Eleven.com/Apply-Now

More Questions?

1-800-782-0711

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23Questions?

Oh Thank Heaven!

Thank You!