Zero Franchise Fee - 7-Eleven

**james.hendrickson** · 02-09-2017, 07:00 AM

Storm, why would 7-11 offer zero franchise fee stores? How will they get paid?

**StormRichards** · 02-09-2017, 07:37 AM

Originally posted by james.hendrickson View Post

Storm, why would 7-11 offer zero franchise fee stores? How will they get paid?

I suspect that they are stores that have been struggling and they just need someone motivated to take it over. I did a search for my area and it wasn't a surprise which ones qualified for this program.

**bjl584** · 02-09-2017, 07:38 AM

If you read a little deeper, it looks like there are still various fees that the owner is responsible for.

**james.hendrickson** · 02-09-2017, 07:42 AM

Storm, would you take on that sort of business?

It was my experience in buying real estate that when rents are "below market" it was for a good reason. Either the property wasn't well maintained or the there was a geographic reason - e.g. the place was next to a park full of drug dealers, etc. I imagine it would be the same for 7-11s. Probably the store is a bad neighborhood, or there is something otherwise undesireable about the location.

**james.hendrickson** · 02-09-2017, 07:42 AM

Originally posted by bjl584 View Post

If you read a little deeper, it looks like there are still various fees that the owner is responsible for.

Oh good catch.

**StormRichards** · 02-09-2017, 07:57 AM

Originally posted by bjl584 View Post

If you read a little deeper, it looks like there are still various fees that the owner is responsible for.

There are always going to be fees associated with a franchise. Still there are stores available that require that additional $80k.

**StormRichards** · 02-09-2017, 08:04 AM

Originally posted by james.hendrickson View Post

Storm, would you take on that sort of business?

It was my experience in buying real estate that when rents are "below market" it was for a good reason. Either the property wasn't well maintained or the there was a geographic reason - e.g. the place was next to a park full of drug dealers, etc. I imagine it would be the same for 7-11s. Probably the store is a bad neighborhood, or there is something otherwise undesireable about the location.

I think in many cases that is the case. But poor management is another reason stores under perform. The store I frequent during work hours is always clean and the owner is there several days a week. He is there putting in the time to make sure things go well. He has another store, and I suspect the days I don't see him he is at the other store working.

A store I stop at after the gym is disgusting and the owner is trying to sell. Sadly this store doesn't qualify for the zero franchise fee program, or else I would consider it. A big factor for me to truly consider buying a franchise would be location of the business and distance from my house. I don't care how much potential I think it has, if it is more than 15 minutes from my house I wouldn't bother. I hate driving.

**StormRichards** · 02-09-2017, 08:13 PM

Originally posted by james.hendrickson View Post

Storm, would you take on that sort of business?

It was my experience in buying real estate that when rents are "below market" it was for a good reason. Either the property wasn't well maintained or the there was a geographic reason - e.g. the place was next to a park full of drug dealers, etc. I imagine it would be the same for 7-11s. Probably the store is a bad neighborhood, or there is something otherwise undesireable about the location.

Replying to this post again after taking another look at the stores for sale in my area. I discovered a ZFF (Zero Franchise Fee) store that I am familiar with that I didn't catch the first time I looked. The location of this particular store is ideal and always has customers when I have stopped. Has brand name gas so that is a plus. Near busy shopping centers. Near a big car dealership. Has a lot of reasons why it should be a highly profitable store.

Took me awhile before it hit me. Another national convenience store chain is about a mile down the road and that chain has fresh made to order food, not hot dogs on a roller or frozen hamburgers. That is the only reason I can come up with that the location would require the ZFF incentive.

**~bs** · 02-13-2017, 12:49 PM

Franchising 101

http://franchise.7-eleven.com/franchise/franchising-101

New to franchising? Watch our Franchising 101 video to learn the basics, benefits, and how to get started with 7-Eleven.

**TexasHusker** · 02-16-2017, 10:31 AM

There is no free lunch. If you sign on to a truly "no franchisee fees" situation, it is obviously a situation where the location is losing money. I can lose money without doing ANYTHING, much less without signing on to some cockamamie franchise/lease agreement.

I've got a franchise location that is losing money currently. Heck I'll PAY someone to take it! Anyone interested?

Think about all the money you're "saving"!!!!!

**StormRichards** · 02-16-2017, 10:42 AM

Originally posted by TexasHusker View Post

There is no free lunch. If you sign on to a truly "no franchisee fees" situation, it is obviously a situation where the location is losing money. I can lose money without doing ANYTHING, much less without signing on to some cockamamie franchise/lease agreement.

I've got a franchise location that is losing money currently. Heck I'll PAY someone to take it! Anyone interested?

Think about all the money you're "saving"!!!!!

How much are you offering to pay?

**StormRichards** · 02-16-2017, 10:45 AM

I have witnessed "locations" fail over and over again despite what business moves in or if it becomes "under new management."

However, I have also witnessed new owners turn a failing business into a successful one.

Bad location is probably at or near the top of the list for why a franchise fails. But it certainly isn't the only reason.

**~bs** · 02-16-2017, 04:11 PM

try read the article I linked. Basically the amount of effort you put in, and the money you make means you're effectively a store manager for 7-11. Some people can make it work, many others cannot. It's not for everyone, and you won't be able to simply hire someone to run the store for you, and scrape 30k or something as net profits for the year without lifting a finger.

**StormRichards** · 02-16-2017, 04:25 PM

Originally posted by ~bs View Post

try read the article I linked. Basically the amount of effort you put in, and the money you make means you're effectively a store manager for 7-11. Some people can make it work, many others cannot. It's not for everyone, and you won't be able to simply hire someone to run the store for you, and scrape 30k or something as net profits for the year without lifting a finger.

Are you sure you posted the correct link? What you posted was to the 7-Eleven Franchising 101 page. I did read that page, but didn't click on any of their reference materials.

If I gave anyone the impression that I thought owning a franchise would be easy, that certainly was not the intention. It is highly unlikely I would pursue this particular franchise, and not sure if I will ever go the franchise route.

Zero Franchise Fee - 7-Eleven