7 Eleven Franchise Goods and Bads

The idea of starting one’s own business is very intriguing indeed. A business model that especially intrigues many people is the business model of becoming a franchise business owner. Everyone knows of famous franchise restaurants and entities, such as McDonalds, Burger King, and others. One such franchise business opportunity is with the 7 Eleven corporation. 7 Eleven is a community convenience store that sells various items of all sorts. This community convenience store is most noteworthy for selling the Slushee, which is a non-alcoholic frozen soft drink that is sold in large cups, with a combination straw and spoon. The company has been in business since the better part of the 20th century.

However, what many people don’t realize is that they could be biting off more than they can chew, so to speak, when they engage in purchasing a franchise business.

If someone is considering a 7 Eleven franchise, then here are some point for them to consider:

- The start- up cost of starting a franchise is very expensive:  A franchise can cost at least six figures in order to get started. It’s not unheard of for long established franchises to require millions to get started.  Will the new franchise owner have the capital in order to purchase their business? And will the capital be enough to cover the cost of the land, taxes, and maintenance for the store? Will there be enough to pay employees? There are all sorts of expenses that come along with starting a franchise business. A new business owner might not be educated to all of the cost that would be required from them.

-Franchise guidelines are prohibitive:  A franchise business owner must adhere to strict rules regarding advertising, product placement, uniforms, etc. In short, the business owner has no say or no freedom of expression with regards to how they run their business. There is no room for creativity. The franchise business owner is representing a corporate brand in the community. In many ways, being a franchise business owner is akin to serving in the military.

-Will there be a person to guide the franchise business owner on a daily basis, whenever they need help?: While the franchise business owner of a 7 Eleven franchise will receive manuals and training, they won’t have a mentor present with them on a daily basis. They certain won’t have a mentor who is just a phone call away. The new franchisee is on their own to make mistakes, and to endure their own learning curves.

- The franchise business owner has got pay to play, so to speak: The franchisee has to pay for the right to sell a franchise product. These payments are called royalties. These  royalty payments are ongoing. This means that whatever revenue that a franchisee earns through their 7 Eleven franchise isn’t entirely theirs. The franchisee must pay the royalty, and then take whatever money is left to pay for expenses. When all of these are taken care of, then the rest is profit.

-Guilt by association: One thing that a 7 Eleven franchise is notorious for is getting robbed, and attracting unsavory characters. Even if a franchisee has a location in a sterling part of town, people will associate the clean and spiffy location with a grungy and unsavory location. The franchise owner of a 7 Eleven franchise has no opportunity to create their own brand or reputation.

All of these factors should give a new franchise prospect of a 7 Eleven franchise pause. There are other methods of becoming a business owner that are far less expensive, less prohibitive, and are far more supportive.