7-Eleven Franchise Business

Why the 7?Eleven system?

– The 7?Eleven brand is a global icon — instantly recognized locally and understood internationally.
We’re known to customers nationwide for our products, quality, service, cleanliness and value. And we’re
the benchmark for retail innovation and technology in the convenience store industry.

What are the differences between the 7?Eleven system and other franchise systems?

– Most franchise systems require royalty payments based on a percentage of sales. With the 7?Eleven
system, you pay royalties based upon the store’s gross profit, that is, net sales receipts less the
wholesale cost of the merchandise you sell. Under this system, the financial return to you and to 7?
Eleven is tied to profitable sales rather than just sales. That’s why 7?Eleven goes beyond helping you
increase sales by giving you the tools and support you need to increase your profitability.

What qualifications does 7?Eleven seek in potential franchisees?

– 7?Eleven seeks candidates that possess the ideal mix of personal qualities, professional experience,
and financial standing to successfully operate a 7?Eleven franchise.

What is my initial investment?

– Franchise Fee amounting to Php 600,000.00 to be paid upon approval of the application. – Initial Store
Supplies (Php 170,000.00), Initial Merchandise (Php 800,000.00), Construction Cost (approximately 2.03
Million Pesos), Advance Rent and Deposit (Depending on the lease terms) are settled before opening the
store – Total Cash Outlay will range from 3.5 Million Pesos to 5 Million Pesos. Note: All amounts are VAT
exclusive *The above-mentioned investment is just an estimation except on the Franchisee’s Fee.

How long does the franchise qualification process take?

– The entire process, from the first meeting with 7?Eleven to the store opening, can take as little as six
months to over a year. The timeline varies largely, depending on the speed of construction, provision of
utilities, release of local regulatory permits and licenses, and the schedule of training of the franchisee.

Can a Corporation apply for a 7-Eleven franchise?

– Franchises are awarded to individuals at first, but upon approval, the applicant may choose to be a Sole
Proprietor, get in a Partnership, or form a Corporation. But the majority of ownership must be clearly with
the principal applicant. In case Franchisee-Corporation, the Corporation must designate a Store Operator,
who must own at least 51% of the Corporation, and one Assistant Store Operator.

Does 7?Eleven provide financing for potential franchisees?

– 7?Eleven has an internal financing program that can provide 60% financing of the Initial Merchandise
Cost.
How much money will I make?

How much money you make will depend on how well you: -Satisfy your customers’ needs by providing
product assortment, value, quality, service, and a clean, safe and friendly environment -Implement all 7?
Eleven operating principles -Recruit and develop a top-rate, customer-focused store staff that can
effectively communicate with your customers -Monitor your sales trends while managing your expenses

Who will build my store?

– Unlike most franchise systems, 7?Eleven does not require franchisees to build and stock their own
stores, its 7?Eleven who provides franchisees with fully stocked, turnkey stores. Applicants may
recommend their own general contractor but 7-Eleven will have the final discretion to approve if the
contractor is qualified to build the store.

Do all 7?Eleven stores need to be open 24 hours a day?

– 7?Eleven operates its business 24 hours a day, 7 days a week.

What type of equipment does 7?Eleven provide?

7?Eleven purchases and installs the following major equipment in stores: – Sales and Table Counters –
Gondolas – Walk-In – Fastfood Tables – Easting Tables and Chairs – Air Conditioning Unit – Open
Showcase – Siopao Steamer – Hotdog Steamer – Rice Cooker – Microwave Oven – Glass Top Freezer
for Ice – Slurpee Machine – Postmix Machine – Softserve Machine – Ice Maker – Amplifier and Speakers
– POS Machine Scanners and Handy Terminal – Tidel Safe and Change Fund – BAT Rack – Juice
Bubbler Machine – Coffee Machine – Mini Refrigerator The equipment you receive for your store may
vary; depending factors of the trade area, governmental or building restrictions, and may not include all
equipment listed above.

Can I suggest carrying my own products, or do I have to carry only what 7?Eleven offers?

– We rely on our Franchisees to tailor their store’s product assortment to meet the needs of their
customers. In doing so, we have assembled a list of over 100 recommended plannograms to suite
different trade areas. In addition, we do require that each store carry certain proprietary products, such as
Slurpee ® and Big Gulp® beverages and 7?Eleven coffee, and other products that are unique to
exclusive to the 7?Eleven system. In case, however, that Franchisee wishes to carry other products which
are not included in the accredited list, Franchisee may submit the same to PSC for accreditation, subject
to supplier’s compliance with the quality, quantity, delivery efficiency and other standard requirements.

What are the key advantages to 7?Eleven franchise system?

– 7?Eleven provides a fully stocked, turnkey operation – 7?Eleven obtains and bears the cost of the major
store equipment. – 7?Eleven and you share in the store’s gross profit – 7?Eleven pays for 50% of the
electricity. – 7?Eleven provides bookkeeping serivces. – 7?Eleven provides a support structure and
Operations Field Consultants, Area Managers and District Managers to help maximize store performance.
Most franchisors either do not provide these services, or they require additional fees if these services are
available. At 7?Eleven, these services are included.

I have found a location that would be perfect for a 7?Eleven store. Can I turn that into my 7?Eleven store?

– In order to be considered for development as a 7?Eleven store, all potential sites must be submitted to
our Site Development Team who will evaluate the site and, if appropriate, work with the developer or
landlord to develop the site. If you are the broker, owner, or developer of a particular site that you believe
fits 7?Eleven’s needs, you may want to send an e-mail to our PR Specialist in order to submit your site. If
you are not already associated with the property, we would ask you to refer the appropriate person to the
PR Specialist or to the respective Site Development Specialist. If you own or lease the site, you may be
able to convert the site to a 7?Eleven store under our Property Conversion Program.

Will 7?Eleven help me if I don’t realize a profit?

– The profits you make in the store depend on how you satisfy your customers’ needs and how you
execute Operational Metrics. However, 7?Eleven may temporarily take over the operation of your store in
the event that franchisee income continuously is not sufficient.

What are the criteria for stores seeking to convert to a 7?Eleven Business Types?

The following business types may be candidates for conversion: – Convenience stores – Gas stations
with Convenience stores or kiosks that can be expanded – Ground-up development (new real estate
sites)