I run a 7-Eleven and I agree with everything that is being told in this video. I told my friends to invest their money somewhere else and I’m trying to get out of this nightmare, it just isn’t worth all that hard work and being harassed by corporate. My friend makes more money as a Rideshare driver! Stay away if you don’t want to be abused.
I inherited 200k from passed away relatives, and I was very close applying for a 7/11 ownership until I came across your video which totally changed my perspective over it. You made me realize that I might’ve done the worse mistake in my life, investing all my money on something as dumb as opening a 7/11. I’m grateful for this eye-opening video, exposing the cons of what the buyers are expecting that are taboo non-spoken subjects. I’m a new subscriber. Would love to hear some more tips on some of the best-franchised businesses... I should consider? Thank you for using your valuable time educating others, I really appreciate it, sir :)
Thank you for your comment and kind words, and sorry for your loss. We don't suggest 7-eleven is necessarily a terrible investment for everyone, simply provided points to consider in the overall decision making process. The "best" franchise will depend on a persons background, skills, business goals, location and a number of other factors. This video may be helpful th-cam.com/video/-MMP9kx60FY/w-d-xo.html Thanks again and welcome!
I just discover your channel today. I did move from Switzerland 3 years ago, didn’t buy a 7/11 but a “well established burger joint open since 1964, that everyone loves in the community.....” everyone told me I was crazy, over paid for it and after two years had to sell it for half the price! Like you said in an other video, need to leave the positive vibes on the side. Did lose everything I had and trying to rebuild myself and my family now! Thanks for your amazing videos and opening the eyes to others!
Wow u got lucky yea u should think it thru like I bearly saw these vids but it does make sense when u think about it it's always the same people at the register cuz the biz not doing so good they work it them selves🤔I'm not an investor but this stuff makes sense when u think deeper.
@@FranchiseCityOnline They just issued a new contract on the east coast, terminating some of their provided services (i.e. payroll), the cost of which now falls on the franchise owners. In addition, they also have revised their gross profit provision, 55% 7-eleven and 45% for the franchise owner.
its better to open up a nice deli, you can attract more custumers because its cheaper also landlord wont take advantage of you since int not a big franchise
@@khmerentertainment681 Yes, it's better if you're willing to risk it, the risk being that a no-name deli has a good chance to fail. The idea of franchising is to reduce this risk, since the "name value" of 7-Eleven is there. The big tradeoff is that your upside is limited and your control is limited. A couple of decades ago, 7-Eleven was worth the investment. Right now, stay away. Start your own business.
Wanted to add a little context that may have been missed. Full disclosure I am not currently a franchisee, but am a corporate employee researching it. Yes, they take a 50% split of profit, however the franchisee is not responsible for rent, utilities, property taxes, advertising, etc. The franchisee is responsible for payroll, maintenance, cash variation, shrink, and some other misc costs. Yes, this is more inclined to buying into a job than an actual business, however you do not have to pay for a building, equipment, setup vendor relationships, taxes, etc. You do have control over your store. You can modify the prices as you see fit and do not have to rely on the SRP. The only requirement in that department is you have to order from their approved vendors for 85% of your store's inventory. Most stores have around 2500 items, which means you can bring in 375 items from wherever you want. Most franchised locations earn between 30-35% gross profit. So on a two million dollar store you can expect to earn $600,000-700,000 before the split and $300,000-$350,000 after split. Payroll makes up the bulk of any business's cost. If you run a 2-2-1 scheduling model to account for the 24/7 hours you can expect to pay $150,000 or so depending on your state's minimum wage along with how well you retain a competent staff. The other costs will shake out to be around $50,000 per year give or take based on quite a few variables. That leaves the franchisee $100,000-$150,000 profit for this scenario. So, that isn't a bad profit for not having to pay rent, utilities, setup vendor relationships, develop your own branding, purchase equipment, etc. This is a turn key business, however that comes with a cost. If you would like to earn a better profit margin then you will have to invest considerably more than it costs to get into a 7-Eleven franchise and then cross your fingers you can compete with the other businesses that have a leg up right out of the gate simply because they have brand recognition. Just like real estate and other businesses; location is everything. If you are trying to buy into 7-Eleven's with low customer counts, poor foot traffic, and in area's that are not growing then don't expect to make much money. If you don't buy into a two million dollar store then you will have to work long hours to make a decent living. Be choosy in the location and make sure you get into one that you can grow by 8-10% per year and you can earn six figures working 45-55 hours per week. I am in the process of exploring franchising and I am still not 100% sold that it is for me. I do know that it does have a lot of pro's and the comments to this video seem to be focused solely on the negatives. I can say with 100% certainty that 7-Eleven is NOT a hands off franchise business. You will need to have lots of input and likely run your store if you only buy one. If you buy more than one you will need to be in and out of them often. Location, location, location. Buy into the right area and you will do just fine.
Thank you for the very well thought out comment. It's not necessarily that we "miss" the positives. The franchisors will always provide those. We provide mostly negatives so that between the franchisors presentation and our analysis buyers might make a balanced decision.
Robert you have balls of steel. Thank you for not being afraid to give us information on the franchise industry! I've watched so many of your videos today and I just love your courage and you are a strong and intelligent person. When I open up my franchise I'm definitely going to come to you for Consulting. Thank you!
Wow did you provide powerful insight into the stereotype perception of the India or Pakistani etc running 7-11 stores. In such hardship countries working hard is the" EZ part of life". Thus marketing the American dream to them with reasonable results, sometimes buying a job can mean a better life. As you said balance the marketing spill and the downside before you put you life savings to work. With split's of 50% or better most of us are better off in investing in 7-11 stock than a 7-11 store.
7/11 were prosecuted recently in Australia and they were forced to pay millions in back wages ripped off from workers. Mostly foreign workers from India in Australia on temporary and student visas. The model here is the same, most 7/11's are owned by Indians, the Indian owners would then hire only Indian workers on temporary visas and underpay them. They would hire Indians on student visas who were not allowed to work, so the workers didnt have the normal protections, and couldnt complain. Many of them were getting only 1 or 2 dollars an hour and working 18 hours a day. When the owners were asked why they did it, they said it was the only way to make money. The regulators in Australia went after 7/11 corporate, for the stolen wages, saying they must have been aware. 7/11 corporate didnt fight it, they apologized and complied with the ruling, paying millions in back pay to mostly foreign student workers.
I remember the workers there always looked miserable and depressed. Then after the back-pay ruling they were so happy and friendly. Used to be almost 100% Indian workers, now it is 50% or less. Lots of new stores keep opening and not many close so there must be viability?
@Ben V. Maybe its better at 7/11, but I just read in the news today that Domino's Pizza workers are having the same problems. Most Domino's are owned by Indians too, and they have a mostly Indian workforce. Domino's have been investigated and they said only 4 stores out of about 60 stores were legal, complying with labour laws. Like I said earlier, if you see a store or franchise with a mostly Indian workforce, its very likely they are exploiting the system and exploiting the workers. Its not just the fault of the Indians though, western corporate franchisors are involved, they know whats going on.
@TheWolfsan Drop generalizing an entire population. Indians are hard working, good people. Ethnic systems may be corrupt but hey, in North America the police never lie, the judges never take kickbacks, and politicians are honest & upright, right?
So you think when I see Indian in New Jersey 7 11 employees chances are they aren’t related to the owner. I used to recognize 3 Indians at my local 7 11. Now I don’t see them anymore and I now see 4 other Indians who I assume they either sold the franchise to or are related with.
Dude, you didn't just dodge a bullet. You've keep the whole damn ammo dump from crashing down on your head. Most people can only hope and wish to be that lucky.
My parents bought a 7 Eleven store in 1965, when they were known as Speedy 7 Eleven. At that time, they were open from 7 AM to 11 PM. The profit cut taken by the company was 40%. In the three years my parents owned the store, the cut went to 60%. Dad had to work the store 7 days a week, 12 hours a day. After he was beaten death one morning, the company ran the store to keep it open. They "lost" $35,000 in 6 weeks. In 1968 dollars.
yeah 7-11 is also known for planting a company store next to any really successful franchise store and siphoning off more of their revenue. I worked briefly at a 7-11 and as only a lowly clerk I knew their franchise agreement was a raw deal
It's a scam because when you drive for Uber, you have to pay for your own gas and maintenance. By the time you figure all of that in, you're basically paying them to drive. They basically took the Domino's pizza delivery model and expanded it to taxi service. 98% of all Uber drivers quit within a couple of years.
@John Lennon Gas? What about: insurance (at a greater cost than personal lines insurance, because you need commercial), maintenance (repairs and preventative), tires and brakes, fluids, vehicle taxes, licensing and registration fees, cleaning (yes - CLEANING! As a cab driver driving 300 shifts a year, spending $3.00 per day with a wand-wash and blow dry, free interior vacuuming (total time on process 10-15 minutes), I was putting out $900.00 per year. Handwashing in your driveway for the cost of water and soap is by no means time efficient. Have you ever been able to clean your car like this in less than 30-45 minutes? Time you can be using to earning money by driving?). What about your car payment, or putting money away for a replacement vehicle? I drove a cab from 1998 to 2010. Let's pick 2007 as a representative year. I drove 300 shifts (either six days a week, or 5 full days and two half days on week ends.) My turn-key lease (all costs as detailed above bundled into the lease payment) was $100.00 per 24 hour period. My average gas bill was $40.00 per day. About 35 to 45% of all my calls were company-brokered calls (Called vouchers. For example, a health insurance company would pay the cab company, which paid me (taking their cut) to take (usually welfare or indigent) patients to and from health care related appointments) Compensation for these calls was $1.50 per mile for medical appointments, $1.85 for mental health, no tip, unless the passenger, out of the goodness of their heart, gave me a couple of bucks they could probably barely afford parting with. Cash, and credit and debt card trips paid a metered rate of $2.75 for the meter drop, and $2.00 per mile, plus tips of about 10-12%. They made up 55 to 65% of my calls. I booked an average of $320.00 per day. After lease ($100.00), gas ($40.00), daily cleaning ($3.00) and a weekly "mini-detail" ($2.00 per day accumulated) my total cost was $145.00. My take home from the $320.00 was $175.00. Income taxes were taken out of this take home. I limited my shifts to 12 hours, but I could only drive 11, needing the last hour to gas and clean the car, and do my financials at the cab company office. Nonetheless it was a 12 hour work day. No morning commute, as I'd start my day in my driveway, and about a 30 minute commute after the shift. $175 divided by 12.5 hours: $14.00 per hour, on a gross of $25.60 per hour ($320 divided by 12.5). And I pretty much had to have 12 hour shifts. Look at the numbers for an 8 hour shift: $214.00 gross, $100.00 lease (no discounts for short shifts), $27.00 for gas, $5.00 for daily clean/weekly mini-detail, resulting in an $82.00 take home paycheck, $6.56 per hour. A 12 hour shift was $93.00 more, or $23.25 each for four extra hours. That's a pretty good economy of scale. If I really needed some extra cash, two extra hours per day is over $250.00 per week. I doubt your take home pay is much more than the national average of $9.00 per hour for Uber and Lyft drivers. But, I'll take you at your word that you gross $25.00 per hour. The average cost per mile to operate a small sedan in the USA is $.464 (46.4 cents) per mile. This includes all costs that I mentioned in my first paragraph above, including car payment, or saving towards a replacement vehicle. Five 10-hour shifts per week of 250 miles each equals at total of 1250 miles, with a total weekly operating cost of $580.00, or about $11.60 per hour. Subtracted from $25.00/hour, this yields $13.40 per hour. So, maybe you're netting a smidge less than I did when I was driving 12 years ago. However, there's that nasty inflation. The dollar experienced an average inflation rate of 1.76% per year during this period. In other words, $100 in 2007 is equivalent in purchasing power to $121.11 in 2018, a difference of $21.11 over 11 years. You've lost about a fifth of my purchasing power. To buy in 2019 what I bought in 2007, you need $17.00 compared to my $14.00. What could go wrong? Well, suppose my transmission blows up in the middle of a shift? Two hours downtime for the two hours to tow it in to the shop, get a new car, pick up a downtime voucher of an hourly pro rata payment of the daily lease, generally $10.00 hour. Because I generated a lot of extra profit for the company because of all the seniority I had and "voucher work" I did, I'd usually get a secret "bump" of $10.00 extra dollars per hour to soften the blow of being off the road. (You have to keep drivers happy. At my company, a new driver needed to complete 20 paid leases for the profit to the company to exceed the cost of recruiting and training him. Only to see the average driver leave after three shifts, probably stiffing the company on the last day.) I could pick up my regular ride a day or two later (if it's something cab companies have a lot of, it's transmissions, engines, rear axles, and alternators. Generally there's no need to order the parts.), or if I was on the road, or at home, it would be delivered to me at a place and time of my choosing. If your transmission blows up? This happened to me once in a personal vehicle. I was without my own car for four days. I was rear-ended another time, with relatively minor (if you can say that about a caved in ass-end of a sedan) damage. I didn't get my car back for two weeks. A brake job? Four hours. A new exhaust system? Four hours. A road-debris punctured fuel tank? Five days. A new alternator? Trick question: I did it myself in front of NAPA Auto Parts, 30 minutes. How much are you making during this down time? Can you afford to sit around waiting for your car to be returned to you, with no income? I guess you could always get a rental car. Good luck if you get caught doing that in some jurisdictions. I've spoken to over three hundred Lyft, Uber and Veyo (a non-urgent medical transport company based on a rideshare business model) drivers in the last 12 months. Due to my medical situation, I average over 10 round trips to various health care appointments each month with Veyo, and about five or so round trips with Lyft (Uber very rarely). That's thirty trip segments per month, or 360 per year. Do you know what two things all 300+ drivers have in common? One: they all think they are earning $18.00 or more per hour after gas. Two: NOT ONE OF THEM ADMITTED CALCULATING ALL THEIR TRUE COSTS TO FIGURE OUT THEIR INCOME. A majority of those 300 drivers finally admitted that after all expenses, they were probably netting $8.00 to $12.00 per hour. One guy actually told me that paying such huge expenses for such a meager salary was a good thing. I asked why. He said that since all expenses are tax deductible, the more he paid in expenses, the better his tax position would be. "Momma says, 'Stupid is as stupid does.'" Forrest Gump. As regular user of these services, would you like to know what kind of bullshit I've commonly run into? Worn tires? I don't get in the car. Poor maintenance is indicated. A dirty car? I don't get in. My experience is that there's a strong correlation between a dirty car and a shitty driver. A car that smells like three day old Burger King, or actual dirty ass? I get out. A driver with no pride in his hygiene or the cleanliness of the car is, again, probably a shitty driver. A driver not wearing a seatbelt? I don't get in, or I get out when I notice. If he doesn't care about his safety, he doesn't care about mine. Same thing with one handed, or two finger drivers. Trinkets and trolls all over the car? You mean missiles in a collision? Texting or talking on the phone? Jesus Christ, get in the back seat, and let me fucking drive. Radio over level 4? Turn that shit down or off. And one final thing. If you need to program your GPS to start a trip at 5420 W. Thunderbird Rd. and end it at 7922 W. Thunderbird Rd, three miles of straight road with no turns, curves, or deviations of any sort from true west anywhere along the length of the trip, then you are a certified dumb fuck. God save the Foundation.
This video is completely correct. Just got out after 10 years and couldn't be happier to be out. You have to work 60 to 80 hours a week just to make a living wage and corporate only cares about themselves. We were also forced to bring in items that we knew wouldn't sell and and would have to be thrown away. 7 Eleven's hot food program is a perfect example of this. We were forced to have our hot case full with food even though we only sold about 1/10 of it. This meant throwing away 9/10s of the food every 2 hours! Do not become a 7 Eleven Franchisee!
The common theme among bad franchises is the percentage of owners who run a single location and work there. As this video suggests, such people are buying a job -- and a low-paying job at that. I used to think it was bad for a franchise to require an owner to open 5 to 15 locations all at once, but now I see the logic. If the investment makes sense, then the franchise owner makes the investment, knowing full well that they have to manage an enterprise, not a single location. If you are going to buy a job, make sure it's the CEO position and not the cashier working 3rd shift on Christmas day after making loan payments on a six-figure investment and dedicating half of the profit to the real owners of the business.
As soon as this video get more views, then 7 11 advertising team will be contacting you and try to bribe you in taking this video down :) keep us updated.
I was employed by a company with enough influence to pay a major news network to change the minds of employees who were voting to unionize. Your comment isn't fiction.
I knew someone who owned two 7-elevens in Manhattan. I asked him one day why he worked shifts at both his stores, his answer: "I can't afford to hire someone and earn a living"
Good friend was a store manager of two in San Diego and the owner ended up working the stores with his wife and 2 kids. He has been trying to sell them for 3 years now. Said it was the worst thing he ever had done.
The 7-11 on Rt 100 in Somers NY has been making someone huge amounts of money for 40+ years, great location, people pouring in day and night. Probably company owned.
...This is why i explain to business dreamers that are ready to become an actual owner is: "Buying a franchise from 7-11 does not make you an owner, it makes you a victim on your own finances". You buy in, you are paid out less. Your selling especially with this company is literally about a 5th of what you paid into it. I can't express enough to people wanting to start a business that they really really need to think long and hard on opening a franchise. It's all in the paperwork. 7-11 is worse and if im not mistaken, there's a civil suit against this store for gouging and of course the recent news about the suppliers and so on that yes pushes people out and try to get more money out of them. It's a darn shame. Awesome information! Can you do a video on people wanting to launch a factory? We are doing a case study on a new client that is starting a factory (we'll say, making apple sauce). Is there a certain company that builds out factory equipment to produce the apple sauce?
I know Rick Ross did with wing stops. He's actually about bulk purchase some more lol Don't know why this comment unless I veered off in my prior comment but im only referring to 7-11
Profit sharing for 7-11 stores meaning feeding the 7-11 CEO,CFO your hard earned money to operate your own money invested! Just put your money to work with Vanguard Investment Financial, you buy stocks of every company in the US/world thru ETFs.
Only sign the agreement with 711 if you can get their CEO and top board executives to operate your personal store 24/7 and no one else. They will surely love that and hate you for it for stringing them along thinking you will be purchasing one and then deny them at last minute.
This comment should have been pinned to your gas station video, but it's still real vent to 711. In ny area, 711 has way too many franchise locations that are competing against each other. Over saturation not good. Next point, last year, 711 inked a deal with Sunoco, where 711 is going to buy Sunoco company owned gas stations and convenient Stores in the northeast. Final point, Starbucks is all corporate , it's product is consistent, and locations are put after extensive market research. Dunking donut on the other hand is a flying circus. Same deal like 711, and subway. The coffee bubble is about to burst soon.
I remember when 7-11 was only open from 7am to 11pm, and we thought that was hot cheese! Back in the early 60's, it was about the only place open where you could grab a candy bar before school.
A while ago i was working for a small shop in the shipping department i had the title general shipping manager but i was the only one working in that department lol
The fact is that majority of franchises are set up so the franchiser does well and the franchisees just buys a job. I wouldn't touch a franchise unless you like paying for an expensive job.
That's the whole point. Buying a franchise is the same thing as buying a job. Problem is, some franchisors make it look like they are selling CEO positions, when in fact they are selling the same entry level retail jobs that anyone can get with no investment at all.
We’re thinking about opening 50 convenient stores in Asia. A lot of which would be operating on our own land and in cities and developing cities. We’ve met with few brands and not yet 7/11 but international brands have offered different deals than what’s usually offered in the US. Wonder what 7/11 will be.
We live in Stratford Ontario Canada and we used to have 3 7-Eleven stores but today only 1 out of 3 locations remains by a shell gas station located directly across Erie Street at an intersection of Erie Street and West Gore Street and is doing just well.
Even employees work there just minimum wages no break time no lunch no overtime I am working since 7 years. Most of the people work there who don’t have a document so they take advances of that...
50% of the revenue would mean 50% of what you invested for the entire store. 50% profit is whatever you make in a store each month they take half of it. Is that correct?
@@khmerentertainment681 Yes, they take 50% and more from the gross profit. You are left with the rest to pay salaries, expenses, maintenance, theft, etc.
the 7-11 in my area has 2 employees that have 2 kids that are 14 years old each n their parents are employees n have their kids working n getting paid from owner n it breaks child labor laws bc they're under 16 n the owner knows, corporate knows n the corporate employee dave said its his store he can do wat he wants, its store 20056 at 500 east baltimore avenue, clifton heights, pa 19018 n the kids only work during the weekend at daytime!!
Franchise City Are you guys at franchise city into innovation in the store markets??? Also do y'all do investments??? Anyone that a young 7Eleven clerk like myself could talk with about these things would be very helpful and Appreciated....Thanks again for the informative videos
Hey Eddie we have the same last name so I know your family is full of A mbitious Talented innovators, who work smart and aren't afraid to take chances and make mistakes....our last name derives from locksmiths which means we often hold the keys too the future.....Let's make a difference so these type of things won't happen to other families
Thanks for the comment- yes we do engage in investments in fact later this year we will be announcing a program to help sponsor aspiring entrepreneurs. There is also a ton of non-franchise content being put together like online marketing strategies and wealth building in general. We'll have a new channel completely dedicated to that.
When I was a child around 1975 7-11 was the Bomb...the only place open after 8 or 9 pm one could buy milk, bread drinks beer some cooking supplies, then it was bought by a Japanese company and seems to have gone down hill. I've seen maybe four 7-11's close in my home town in the past few years. Don't know if there are anymore here. To bad.
this was ... englihtening. The 7-11 near me is in a hot location and always busy. I watched them go from Active to Under contract on Loopnet twice only to come back and lower the price. Wondered what's up considering there are always people shopping even at 3am.
Here in Philadelphia it appears that 7-11 is taking a beating from Wawa. 7-11 cannot compete, so when a Wawa opens anywhere near a 7-11, the latter usually goes belly up. I say 'Good'.
Yes, Wawa is much better. They don't franchise though. All corporate run. They go for quality over quantity, in terms of number of stores. Good locations. Good buildings. Uniform items across all stores.
I am a 7 eleven multiple franchisee , just want to add to you guys knowledge that franchisee does split gross profit dollars with corporate but doesn’t pay rent , utilities, expensive maintenance, and accounting expense. Vs in many other franchises you pay for utilities, rent , construction cost. All said 7 eleven is an affordable franchise as compared to many other models. Yes its got issues but is it all that bad !! Probably not. There is no easy money out there.
There is a 7 eleven by my house it's funny when he mentioned receipts, I don't ever recall getting a receipt, they r weird about that as if they don't want to use paper or are hiding something
the 7-11 around my area isn't clean, don't pay well, employees don't pay attention to customers, owner is not there anymore, black toxic mold is on ice machine n still nobody cleaned it for over a year n many more problems like bugs n mice!!
thanks for the detailed review of 7/11.i did worked for 7/11 long ago and now planning for buying some kind of franchise in USA possibly 7/11 but now got different ideas after your explanation.i am from Pakistan an would love to know more for any sort of business that qualify for immigration of my family
Thank you for visiting. 7/11 is not ideal for investor visa. We provide a free service to investors to help them identify the top available E-2 friendly franchises best suited to their budget and skills - details here: www.franchise.city/e2-visa
Please do a "Top 4 reasons this channel keeps appearing in my recommended section even though I never even considered owning a franchise and am currently living off of French taxpayers' euros" and I might consider subscribing. Might.
Based on complex predictive algorithms TH-cam and Franchise City have absolute confidence that in the not too distant future you will control a vast franchising empire. Hitting the subscribe button right now is in essence - that "Red Pill" defining moment. Qui n’avance pas, recule!
Listen up 50% of the profit goes to rent, insurance of the property, property taxes, water bill and electric bill. And the other 50% profit goes to the owner.
7 Eleven: Sharecropping Also, in personal life: Once a person has a certain belief/opinion of someone-no matter what new info presented-they will not want to accept counter intellegence.
Why would anyone want to open any franchise? If a McD's is 1.5 million up front why not buy your own building and open your own restaurant? You can open a convenient store and order through a company like Polep that sets up displays for you or sell hershey's Ice cream where they supply freezers and equipment at no cost. It just doesn't make sense. All you get is a brand name. With the money you save you can create and promote your own brand on your own terms.
Just to see a burnt out 7-11 clerk at the counter who works 12 hours a day 7 days a week between several stores was enough for me to say no thanks to ever put ANY money into franchising.....in fact I think I might never go back into a 7-11 because of poor business practices and exploiting immigrants.
A former neighbor of mine lost everything over a franchise he and his wife had ... it was heartbreaking to watch their house being repossessed along with everything else they had ... heard later that their marriage ended in divorce ...
Good point on 7-11 being so bad that the E2 is denied. But the point on the split can be argued that this is not the basis for "investment" Because 50k per annum return on THEIR investment of 150k is not bad. Their share of a million is not the proper measure (it's not meaningless) but it's not the way you yourself measure success.
You must be psychic! We just recorded that last week will be uploading later today. If u are subscribed you should get a notification. Don't hesitate to call Franchise City brokers for personalized help! www.franchise.city/our-services
I don't know how I found this channel but I'm big on entrepreneurship and business even though I have no interest in owning a franchise of any type but only critique is I wish to video stating color the entire time and not move to Black and White. If you can make a video on the five most important metrics to look at as success for any business including a franchise or artistic Endeavor that would be a cool video that I would like to see
$25K? $150K? Here in the northeast, the average investment is $500K for a 7Eleven. There are certain stores under $250K, but those are all junk and you will make nothing.
All I can say is don’t franchise 7/11. It’s like getting robbed by a thief whom you given your gun to and opening the door for them and tell them where the money is at. They only care about the money you make for them and they will only allow you to keep enough where you survive.
Nice video. Your suggestions are inline with my personal research. But surprisingly, your website recommends AAMCO which as per my research is even worse than 7/11, I can write a whole page on what is wrong with them and their model, similarly, MACO is not good either.
Thanks for the comment - to be very clear - our website doesn't recommend any franchise. The only franchises we recommend are those matching the specific criteria of the buyer as determined by our assessments. Market demographics, local demand and operator skill can make a "bad" franchise good and vice versa. These videos are general in nature and to be honest not very accurate in real world applications.
Good question! Several franchisees actually took 7-Eleven to court for that very reason. They lost. In eyes of the court at least 7-Eleven was able to prove they are not an employer. Details here: www.wagehourblog.com/2018/04/articles/california-wage-hour-law/federal-court-concludes-that-7-eleven-franchisees-are-not-employees-of-7-eleven/ Thanks for the comment!
wait, 7/11 takes 50% of the profit or 50% of the money you make? Because 50% of the profit is far more than just 50%... it's more like what, 75%? 90%? I mean if you LOSE money, then what does 7/11 take from you?
Well it depends there are some stores with insanely high gross profit, sales of 4 million a year and over a million in pure bottom line profit... They are very rare but they do exist and a 50/50 split in those stores will be very profitable
In those cases it becomes more than 50% as royalties increase on earnings. unless they have an old store still under the old agreement. But agreed some established locations can do well.
No. I never heard of a 4 million store. I dont know of a 3 million dollar store in the northeast or midatlantic areas. An insane profit margin would be 40% and i havent seen that. So 4 million at 40% would be 1.6 million. The best franchise agreement is 48% for the franchisee. So you would have less than $800k. Then you have to pay 100% of the payroll, payroll taxes and workers comp. In a store doing 4 million that is going to be quite a lot. Still have to pay for store supplies and maintenance contracts. Any theft or shortages due to paperwork error are 100 percent on the franchisee.
I run a 7-Eleven and I agree with everything that is being told in this video. I told my friends to invest their money somewhere else and I’m trying to get out of this nightmare, it just isn’t worth all that hard work and being harassed by corporate. My friend makes more money as a Rideshare driver! Stay away if you don’t want to be abused.
Sorry to hear of your experience, and thank you for sharing your story.
Is it possible to pay your emloyees more?
Thank you, I was thinking about buying a 7-11 in Manila.
@@wizardgaming669 Might be a different situation there :-) Information provided was mostly focused on the US market.
@@wizardgaming669 phillipines got fine women!
Sharing 50% profit. That's like going into business with Tony Soprano.
bribe tony with some gabagoo
7-11 never had the makings of a varsity athlete. 👎
Tony only would charge like 30% plus interest and if you were short on profit he'd tack the difference onto the principal of the interest.
Lol. Sharecropping
You should ensure it for every penny that you can and then burn it down. That's the Tony Soprano way.
I inherited 200k from passed away relatives, and I was very close applying for a 7/11 ownership until I came across your video which totally changed my perspective over it. You made me realize that I might’ve done the worse mistake in my life, investing all my money on something as dumb as opening a 7/11. I’m grateful for this eye-opening video, exposing the cons of what the buyers are expecting that are taboo non-spoken subjects. I’m a new subscriber. Would love to hear some more tips on some of the best-franchised businesses... I should consider? Thank you for using your valuable time educating others, I really appreciate it, sir :)
Thank you for your comment and kind words, and sorry for your loss. We don't suggest 7-eleven is necessarily a terrible investment for everyone, simply provided points to consider in the overall decision making process. The "best" franchise will depend on a persons background, skills, business goals, location and a number of other factors. This video may be helpful th-cam.com/video/-MMP9kx60FY/w-d-xo.html Thanks again and welcome!
I just discover your channel today. I did move from Switzerland 3 years ago, didn’t buy a 7/11 but a “well established burger joint open since 1964, that everyone loves in the community.....” everyone told me I was crazy, over paid for it and after two years had to sell it for half the price! Like you said in an other video, need to leave the positive vibes on the side. Did lose everything I had and trying to rebuild myself and my family now! Thanks for your amazing videos and opening the eyes to others!
Wow u got lucky yea u should think it thru like I bearly saw these vids but it does make sense when u think about it it's always the same people at the register cuz the biz not doing so good they work it them selves🤔I'm not an investor but this stuff makes sense when u think deeper.
Don't bother buying a fanchise. Spend half the money becoming an airline pilot, spend the rest on gold.
Take that 200 and buy a duplex
Trust me family had 7 stores now have 4. They are thieves and liars worst franchise ever
Thank you for the comment. Sorry to hear about your negative experience.
@@FranchiseCityOnline They just issued a new contract on the east coast, terminating some of their provided services (i.e. payroll), the cost of which now falls on the franchise owners. In addition, they also have revised their gross profit provision, 55% 7-eleven and 45% for the franchise owner.
Wow - that is brutal! Thank you for providing that information. @@ljyenchik3867
one call yea I bet making 10k per store is bad????
My dad has 7/11’s. Makes 10-15k a store a month
50% of profit? You can get a better deal from the mafia!
haahhahahahhaha
Never franchise a 7-Eleven. You will be a slave for them.
its better to open up a nice deli, you can attract more custumers because its cheaper also landlord wont take advantage of you since int not a big franchise
Eddie Smith
Hhh
how about not franchising with 7 eleven and just owning it yourself? wouldnt that be a better deal? you keep 100% profit from your store.
@@khmerentertainment681 Yes, it's better if you're willing to risk it, the risk being that a no-name deli has a good chance to fail. The idea of franchising is to reduce this risk, since the "name value" of 7-Eleven is there. The big tradeoff is that your upside is limited and your control is limited. A couple of decades ago, 7-Eleven was worth the investment. Right now, stay away. Start your own business.
Wanted to add a little context that may have been missed. Full disclosure I am not currently a franchisee, but am a corporate employee researching it. Yes, they take a 50% split of profit, however the franchisee is not responsible for rent, utilities, property taxes, advertising, etc. The franchisee is responsible for payroll, maintenance, cash variation, shrink, and some other misc costs. Yes, this is more inclined to buying into a job than an actual business, however you do not have to pay for a building, equipment, setup vendor relationships, taxes, etc. You do have control over your store. You can modify the prices as you see fit and do not have to rely on the SRP. The only requirement in that department is you have to order from their approved vendors for 85% of your store's inventory. Most stores have around 2500 items, which means you can bring in 375 items from wherever you want. Most franchised locations earn between 30-35% gross profit. So on a two million dollar store you can expect to earn $600,000-700,000 before the split and $300,000-$350,000 after split. Payroll makes up the bulk of any business's cost. If you run a 2-2-1 scheduling model to account for the 24/7 hours you can expect to pay $150,000 or so depending on your state's minimum wage along with how well you retain a competent staff. The other costs will shake out to be around $50,000 per year give or take based on quite a few variables. That leaves the franchisee $100,000-$150,000 profit for this scenario. So, that isn't a bad profit for not having to pay rent, utilities, setup vendor relationships, develop your own branding, purchase equipment, etc. This is a turn key business, however that comes with a cost. If you would like to earn a better profit margin then you will have to invest considerably more than it costs to get into a 7-Eleven franchise and then cross your fingers you can compete with the other businesses that have a leg up right out of the gate simply because they have brand recognition.
Just like real estate and other businesses; location is everything. If you are trying to buy into 7-Eleven's with low customer counts, poor foot traffic, and in area's that are not growing then don't expect to make much money. If you don't buy into a two million dollar store then you will have to work long hours to make a decent living. Be choosy in the location and make sure you get into one that you can grow by 8-10% per year and you can earn six figures working 45-55 hours per week.
I am in the process of exploring franchising and I am still not 100% sold that it is for me. I do know that it does have a lot of pro's and the comments to this video seem to be focused solely on the negatives. I can say with 100% certainty that 7-Eleven is NOT a hands off franchise business. You will need to have lots of input and likely run your store if you only buy one. If you buy more than one you will need to be in and out of them often. Location, location, location. Buy into the right area and you will do just fine.
Thank you for the very well thought out comment. It's not necessarily that we "miss" the positives. The franchisors will always provide those. We provide mostly negatives so that between the franchisors presentation and our analysis buyers might make a balanced decision.
Thank you for the information
Very well explain 👍
Robert you have balls of steel. Thank you for not being afraid to give us information on the franchise industry! I've watched so many of your videos today and I just love your courage and you are a strong and intelligent person. When I open up my franchise I'm definitely going to come to you for Consulting. Thank you!
Thanks! Sorry I missed this one :-)
50% cut youd have to be crazy to do that deal
Often more than 50% ! And there is still line-ups of people begging to buy a location. Thanks for the comment.
Crazy or desperate.
Wow did you provide powerful insight into the stereotype perception of the India or Pakistani etc running 7-11 stores. In such hardship countries working hard is the" EZ part of life". Thus marketing the American dream to them with reasonable results, sometimes buying a job can mean a better life. As you said balance the marketing spill and the downside before you put you life savings to work. With split's of 50% or better most of us are better off in investing in 7-11 stock than a 7-11 store.
7/11 were prosecuted recently in Australia and they were forced to pay millions in back wages ripped off from workers. Mostly foreign workers from India in Australia on temporary and student visas. The model here is the same, most 7/11's are owned by Indians, the Indian owners would then hire only Indian workers on temporary visas and underpay them. They would hire Indians on student visas who were not allowed to work, so the workers didnt have the normal protections, and couldnt complain. Many of them were getting only 1 or 2 dollars an hour and working 18 hours a day.
When the owners were asked why they did it, they said it was the only way to make money. The regulators in Australia went after 7/11 corporate, for the stolen wages, saying they must have been aware. 7/11 corporate didnt fight it, they apologized and complied with the ruling, paying millions in back pay to mostly foreign student workers.
I remember the workers there always looked miserable and depressed. Then after the back-pay ruling they were so happy and friendly.
Used to be almost 100% Indian workers, now it is 50% or less.
Lots of new stores keep opening and not many close so there must be viability?
@Ben V. Maybe its better at 7/11, but I just read in the news today that Domino's Pizza workers are having the same problems. Most Domino's are owned by Indians too, and they have a mostly Indian workforce. Domino's have been investigated and they said only 4 stores out of about 60 stores were legal, complying with labour laws.
Like I said earlier, if you see a store or franchise with a mostly Indian workforce, its very likely they are exploiting the system and exploiting the workers. Its not just the fault of the Indians though, western corporate franchisors are involved, they know whats going on.
I wonder I'd this is the case with Dunkin Donuts. Now, mostly owner and worked by Indians.
@TheWolfsan Drop generalizing an entire population. Indians are hard working, good people. Ethnic systems may be corrupt but hey, in North America the police never lie, the judges never take kickbacks, and politicians are honest & upright, right?
So you think when I see Indian in New Jersey 7 11 employees chances are they aren’t related to the owner. I used to recognize 3 Indians at my local 7 11. Now I don’t see them anymore and I now see 4 other Indians who I assume they either sold the franchise to or are related with.
My dreams were shattered that quick😣👍
Better now than after spending $150K!
Franchise City indeed
Dude, you didn't just dodge a bullet. You've keep the whole damn ammo dump from crashing down on your head. Most people can only hope and wish to be that lucky.
My parents bought a 7 Eleven store in 1965, when they were known as Speedy 7 Eleven. At that time, they were open from 7 AM to 11 PM. The profit cut taken by the company was 40%. In the three years my parents owned the store, the cut went to 60%. Dad had to work the store 7 days a week, 12 hours a day. After he was beaten death one morning, the company ran the store to keep it open. They "lost" $35,000 in 6 weeks. In 1968 dollars.
Holy shit! Oh my lord....
Wow that is horrible bro!
A ford mustang was $2100 in 1960s... so that is about half million today.
very sad. greed is the root of all evil.
Oh my that’s terrible
This is slavery with extra steps
I called it sharecropping, too!
That is the best way to describe 7-11 ever!
Slavery is when youre forced to work. Its nothing like slavery
yeah 7-11 is also known for planting a company store next to any really successful franchise store and siphoning off more of their revenue. I worked briefly at a 7-11 and as only a lowly clerk I knew their franchise agreement was a raw deal
Wow, thought about opening a 7-Eleven but now I am slamming that door shut
HeyItsQuei it’s a trap
Good decision, they're greedy mf's
My mind is completely blown by this!!!! I had no idea that 7/11 was an operator model and not a franchise model and the cost involved
Why not just open up your own convenient store . Like the neighborhood deli. A store is a store, right.?
7-11 sounds alot like driving for Uber. Both scams.
It's a scam because when you drive for Uber, you have to pay for your own gas and maintenance. By the time you figure all of that in, you're basically paying them to drive. They basically took the Domino's pizza delivery model and expanded it to taxi service. 98% of all Uber drivers quit within a couple of years.
@Nobodeh DontNeedToKnow Nope...Tax and 12-14hrs of driving per day to make less than 15$/hr....
@John Lennon Gas? What about: insurance (at a greater cost than personal lines insurance, because you need commercial), maintenance (repairs and preventative), tires and brakes, fluids, vehicle taxes, licensing and registration fees, cleaning (yes - CLEANING! As a cab driver driving 300 shifts a year, spending $3.00 per day with a wand-wash and blow dry, free interior vacuuming (total time on process 10-15 minutes), I was putting out $900.00 per year. Handwashing in your driveway for the cost of water and soap is by no means time efficient. Have you ever been able to clean your car like this in less than 30-45 minutes? Time you can be using to earning money by driving?). What about your car payment, or putting money away for a replacement vehicle?
I drove a cab from 1998 to 2010. Let's pick 2007 as a representative year. I drove 300 shifts (either six days a week, or 5 full days and two half days on week ends.) My turn-key lease (all costs as detailed above bundled into the lease payment) was $100.00 per 24 hour period. My average gas bill was $40.00 per day.
About 35 to 45% of all my calls were company-brokered calls (Called vouchers. For example, a health insurance company would pay the cab company, which paid me (taking their cut) to take (usually welfare or indigent) patients to and from health care related appointments) Compensation for these calls was $1.50 per mile for medical appointments, $1.85 for mental health, no tip, unless the passenger, out of the goodness of their heart, gave me a couple of bucks they could probably barely afford parting with.
Cash, and credit and debt card trips paid a metered rate of $2.75 for the meter drop, and $2.00 per mile, plus tips of about 10-12%. They made up 55 to 65% of my calls.
I booked an average of $320.00 per day. After lease ($100.00), gas ($40.00), daily cleaning ($3.00) and a weekly "mini-detail" ($2.00 per day accumulated) my total cost was $145.00. My take home from the $320.00 was $175.00. Income taxes were taken out of this take home. I limited my shifts to 12 hours, but I could only drive 11, needing the last hour to gas and clean the car, and do my financials at the cab company office. Nonetheless it was a 12 hour work day. No morning commute, as I'd start my day in my driveway, and about a 30 minute commute after the shift. $175 divided by 12.5 hours: $14.00 per hour, on a gross of $25.60 per hour ($320 divided by 12.5).
And I pretty much had to have 12 hour shifts. Look at the numbers for an 8 hour shift: $214.00 gross, $100.00 lease (no discounts for short shifts), $27.00 for gas, $5.00 for daily clean/weekly mini-detail, resulting in an $82.00 take home paycheck, $6.56 per hour. A 12 hour shift was $93.00 more, or $23.25 each for four extra hours. That's a pretty good economy of scale. If I really needed some extra cash, two extra hours per day is over $250.00 per week.
I doubt your take home pay is much more than the national average of $9.00 per hour for Uber and Lyft drivers. But, I'll take you at your word that you gross $25.00 per hour. The average cost per mile to operate a small sedan in the USA is $.464 (46.4 cents) per mile. This includes all costs that I mentioned in my first paragraph above, including car payment, or saving towards a replacement vehicle. Five 10-hour shifts per week of 250 miles each equals at total of 1250 miles, with a total weekly operating cost of $580.00, or about $11.60 per hour. Subtracted from $25.00/hour, this yields $13.40 per hour.
So, maybe you're netting a smidge less than I did when I was driving 12 years ago. However, there's that nasty inflation. The dollar experienced an average inflation rate of 1.76% per year during this period. In other words, $100 in 2007 is equivalent in purchasing power to $121.11 in 2018, a difference of $21.11 over 11 years. You've lost about a fifth of my purchasing power. To buy in 2019 what I bought in 2007, you need $17.00 compared to my $14.00.
What could go wrong?
Well, suppose my transmission blows up in the middle of a shift? Two hours downtime for the two hours to tow it in to the shop, get a new car, pick up a downtime voucher of an hourly pro rata payment of the daily lease, generally $10.00 hour. Because I generated a lot of extra profit for the company because of all the seniority I had and "voucher work" I did, I'd usually get a secret "bump" of $10.00 extra dollars per hour to soften the blow of being off the road. (You have to keep drivers happy. At my company, a new driver needed to complete 20 paid leases for the profit to the company to exceed the cost of recruiting and training him. Only to see the average driver leave after three shifts, probably stiffing the company on the last day.) I could pick up my regular ride a day or two later (if it's something cab companies have a lot of, it's transmissions, engines, rear axles, and alternators. Generally there's no need to order the parts.), or if I was on the road, or at home, it would be delivered to me at a place and time of my choosing.
If your transmission blows up? This happened to me once in a personal vehicle. I was without my own car for four days.
I was rear-ended another time, with relatively minor (if you can say that about a caved in ass-end of a sedan) damage. I didn't get my car back for two weeks.
A brake job? Four hours. A new exhaust system? Four hours. A road-debris punctured fuel tank? Five days. A new alternator? Trick question: I did it myself in front of NAPA Auto Parts, 30 minutes.
How much are you making during this down time? Can you afford to sit around waiting for your car to be returned to you, with no income? I guess you could always get a rental car. Good luck if you get caught doing that in some jurisdictions.
I've spoken to over three hundred Lyft, Uber and Veyo (a non-urgent medical transport company based on a rideshare business model) drivers in the last 12 months. Due to my medical situation, I average over 10 round trips to various health care appointments each month with Veyo, and about five or so round trips with Lyft (Uber very rarely). That's thirty trip segments per month, or 360 per year.
Do you know what two things all 300+ drivers have in common? One: they all think they are earning $18.00 or more per hour after gas. Two: NOT ONE OF THEM ADMITTED CALCULATING ALL THEIR TRUE COSTS TO FIGURE OUT THEIR INCOME.
A majority of those 300 drivers finally admitted that after all expenses, they were probably netting $8.00 to $12.00 per hour. One guy actually told me that paying such huge expenses for such a meager salary was a good thing. I asked why. He said that since all expenses are tax deductible, the more he paid in expenses, the better his tax position would be. "Momma says, 'Stupid is as stupid does.'" Forrest Gump.
As regular user of these services, would you like to know what kind of bullshit I've commonly run into?
Worn tires? I don't get in the car. Poor maintenance is indicated. A dirty car? I don't get in. My experience is that there's a strong correlation between a dirty car and a shitty driver. A car that smells like three day old Burger King, or actual dirty ass? I get out. A driver with no pride in his hygiene or the cleanliness of the car is, again, probably a shitty driver. A driver not wearing a seatbelt? I don't get in, or I get out when I notice. If he doesn't care about his safety, he doesn't care about mine. Same thing with one handed, or two finger drivers. Trinkets and trolls all over the car? You mean missiles in a collision? Texting or talking on the phone? Jesus Christ, get in the back seat, and let me fucking drive. Radio over level 4? Turn that shit down or off.
And one final thing. If you need to program your GPS to start a trip at 5420 W. Thunderbird Rd. and end it at 7922 W. Thunderbird Rd, three miles of straight road with no turns, curves, or deviations of any sort from true west anywhere along the length of the trip, then you are a certified dumb fuck. God save the Foundation.
This video is completely correct. Just got out after 10 years and couldn't be happier to be out. You have to work 60 to 80 hours a week just to make a living wage and corporate only cares about themselves. We were also forced to bring in items that we knew wouldn't sell and and would have to be thrown away. 7 Eleven's hot food program is a perfect example of this. We were forced to have our hot case full with food even though we only sold about 1/10 of it. This meant throwing away 9/10s of the food every 2 hours! Do not become a 7 Eleven Franchisee!
Thank you for the comment! Sorry to hear of your negative experience.
Take me down to the franchise city
Where the cash is green and the stores are pretty
willysnowman What the fuck? This needs all the likes! 👍
Take, me, home, yeah yeah!
The common theme among bad franchises is the percentage of owners who run a single location and work there. As this video suggests, such people are buying a job -- and a low-paying job at that.
I used to think it was bad for a franchise to require an owner to open 5 to 15 locations all at once, but now I see the logic. If the investment makes sense, then the franchise owner makes the investment, knowing full well that they have to manage an enterprise, not a single location. If you are going to buy a job, make sure it's the CEO position and not the cashier working 3rd shift on Christmas day after making loan payments on a six-figure investment and dedicating half of the profit to the real owners of the business.
As soon as this video get more views, then 7 11 advertising team will be contacting you and try to bribe you in taking this video down :) keep us updated.
Haha - I'll let you know.
Franchise City they’ll have cnn take you down like they took down info wars lol
I was employed by a company with enough influence to pay a major news network to change the minds of employees who were voting to unionize. Your comment isn't fiction.
Crazy I have been seeing 7-eleven small business ads on my Facebook, good thing I seen this. Thanks
Thanks for visiting!
I knew someone who owned two 7-elevens in Manhattan. I asked him one day why he worked shifts at both his stores, his answer: "I can't afford to hire someone and earn a living"
Good friend was a store manager of two in San Diego and the owner ended up working the stores with his wife and 2 kids. He has been trying to sell them for 3 years now. Said it was the worst thing he ever had done.
Thanks for the comment. Sadly not a rare story.
The 7-11 on Rt 100 in Somers NY has been making someone huge amounts of money for 40+ years, great location, people pouring in day and night. Probably company owned.
The local 711 near me is promoting everywhere that the store is for sale. Now I see why
...This is why i explain to business dreamers that are ready to become an actual owner is: "Buying a franchise from 7-11 does not make you an owner, it makes you a victim on your own finances". You buy in, you are paid out less. Your selling especially with this company is literally about a 5th of what you paid into it.
I can't express enough to people wanting to start a business that they really really need to think long and hard on opening a franchise. It's all in the paperwork. 7-11 is worse and if im not mistaken, there's a civil suit against this store for gouging and of course the recent news about the suppliers and so on that yes pushes people out and try to get more money out of them. It's a darn shame.
Awesome information! Can you do a video on people wanting to launch a factory? We are doing a case study on a new client that is starting a factory (we'll say, making apple sauce). Is there a certain company that builds out factory equipment to produce the apple sauce?
Thanks for the comment. Not all franchises are bad, in fact some are quite good. Manufacturing is not really our area of specialty.
+Franchise City look up Rick Ross and wingstop franchise!! he bought 30 wingstop franchises
I know Rick Ross did with wing stops. He's actually about bulk purchase some more lol Don't know why this comment unless I veered off in my prior comment but im only referring to 7-11
I edited my comment so it sticks to 7-11, I see what i did sorry. i have to reach out to you soon!
The WPA Group so what’s a good franchise
Profit sharing for 7-11 stores meaning feeding the 7-11 CEO,CFO your hard earned money to operate your own money invested! Just put your money to work with Vanguard Investment Financial, you buy stocks of every company in the US/world thru ETFs.
The one by my house just closed in June. The biggest part was it was on a busy street. Now I know why it closed.
Only sign the agreement with 711 if you can get their CEO and top board executives to operate your personal store 24/7 and no one else. They will surely love that and hate you for it for stringing them along thinking you will be purchasing one and then deny them at last minute.
This comment should have been pinned to your gas station video, but it's still real vent to 711. In ny area, 711 has way too many franchise locations that are competing against each other. Over saturation not good. Next point, last year, 711 inked a deal with Sunoco, where 711 is going to buy Sunoco company owned gas stations and convenient Stores in the northeast.
Final point, Starbucks is all corporate , it's product is consistent, and locations are put after extensive market research. Dunking donut on the other hand is a flying circus. Same deal like 711, and subway. The coffee bubble is about to burst soon.
I remember when 7-11 was only open from 7am to 11pm, and we thought that was hot cheese! Back in the early 60's, it was about the only place open where you could grab a candy bar before school.
working int he store yourself is just good business advice. You are your best employee and you are the best manager
A while ago i was working for a small shop in the shipping department i had the title general shipping manager but i was the only one working in that department lol
Several of the 7-11s in my area have removed their gas pumps and no longer sell gas.
Happening in a lot of places! Thanks for the comment.
Why the are removing their gas pumps
why are they removing gas pump? it shoudl be easy profit for the store.
exactly ,,,,same around my area too.....
The fact is that majority of franchises are set up so the franchiser does well and the franchisees just buys a job. I wouldn't touch a franchise unless you like paying for an expensive job.
That's the whole point. Buying a franchise is the same thing as buying a job. Problem is, some franchisors make it look like they are selling CEO positions, when in fact they are selling the same entry level retail jobs that anyone can get with no investment at all.
Buying a franchise is being a manager job so that you are guaranteed to look after the business like your own but you don’t profit a bit at all.
Either of you own a franchise? Because I have a few, wanna compare bank accounts?
James Keating sure send me your bank account info and I’ll verify if it’s truth or not. I’ll be very impartial with your data. Don’t forget the SSN.
We’re thinking about opening 50 convenient stores in Asia. A lot of which would be operating on our own land and in cities and developing cities. We’ve met with few brands and not yet 7/11 but international brands have offered different deals than what’s usually offered in the US. Wonder what 7/11 will be.
We live in Stratford Ontario Canada and we used to have 3 7-Eleven stores but today only 1 out of 3 locations remains by a shell gas station located directly across Erie Street at an intersection of Erie Street and West Gore Street and is doing just well.
wow - thanks for the comment!
Even employees work there just minimum wages no break time no lunch no overtime I am working since 7 years. Most of the people work there who don’t have a document so they take advances of that...
Thank you for this and your other videos. Much iluminating.
Thanks for the comment!
If I can't open at 7 and close at 11, I'm not going to be a 7-eleven franchisee!
HunterShows jaja😅
HunterShows ever thought of opening an 8-12😃
Funny enough, that's how 7-Eleven got its name. They used to open 7 and close 11, when most c-stores opened later and closed earlier.
I think you have to be more clear about the term "revenue". 7-11 does not take 50% of the revenue but 50% of the profit--a big difference.
50% of the revenue would mean 50% of what you invested for the entire store. 50% profit is whatever you make in a store each month they take half of it. Is that correct?
@@khmerentertainment681 Yes, they take 50% and more from the gross profit. You are left with the rest to pay salaries, expenses, maintenance, theft, etc.
Just look into the eyes of a 711 owner and you can tell there must be better investments out there.
the 7-11 in my area has 2 employees that have 2 kids that are 14 years old each n their parents are employees n have their kids working n getting paid from owner n it breaks child labor laws bc they're under 16 n the owner knows, corporate knows n the corporate employee dave said its his store he can do wat he wants, its store 20056 at 500 east baltimore avenue, clifton heights, pa 19018 n the kids only work during the weekend at daytime!!
I changed my mind thank you.
Thanks for visiting!
Thanks for the info on this and all the others. Very informative channel.
Thanks for the comment!
Good video thanks you for the info!
Thank you for the valuable information
Thank you for the comment
I'm having a love affair with these videos. My wife an I always talk about what it must be like to own a franchise. We have no interest however.
Thank you for visiting!
Everything he said is so true.
Thanks for the comment
50% profit!! I make more than that hustling!! I really want to own a franchise but glad I found out more. What's a good franchise to ow
My parents owned a White Hen and then it was bought out by 7-Eleven. 7-Eleven ruined my families life.
Thanks for the comment and sorry to hear about your experience.
Franchise City Are you guys at franchise city into innovation in the store markets??? Also do y'all do investments??? Anyone that a young 7Eleven clerk like myself could talk with about these things would be very helpful and Appreciated....Thanks again for the informative videos
Hey Eddie we have the same last name so I know your family is full of A mbitious Talented innovators, who work smart and aren't afraid to take chances and make mistakes....our last name derives from locksmiths which means we often hold the keys too the future.....Let's make a difference so these type of things won't happen to other families
Thanks for the comment- yes we do engage in investments in fact later this year we will be announcing a program to help sponsor aspiring entrepreneurs. There is also a ton of non-franchise content being put together like online marketing strategies and wealth building in general. We'll have a new channel completely dedicated to that.
I remember White Hen Pantry. My friends and I always called it "The Hen." One of our hangouts after school. Memories..….
When I was a child around 1975 7-11 was the Bomb...the only place open after 8 or 9 pm one could buy milk, bread drinks beer some cooking supplies, then it was bought by a Japanese company and seems to have gone down hill. I've seen maybe four 7-11's close in my home town in the past few years. Don't know if there are anymore here. To bad.
this was ... englihtening. The 7-11 near me is in a hot location and always busy. I watched them go from Active to Under contract on Loopnet twice only to come back and lower the price. Wondered what's up considering there are always people shopping even at 3am.
Thank you so much for an eye opening, planning to franchise but have to think about more.
Here in Philadelphia it appears that 7-11 is taking a beating from Wawa. 7-11 cannot compete, so when a Wawa opens anywhere near a 7-11, the latter usually goes belly up. I say 'Good'.
Quik Trip does the same thing a lot of stores LoL.
Yes, Wawa is much better. They don't franchise though. All corporate run. They go for quality over quantity, in terms of number of stores. Good locations. Good buildings. Uniform items across all stores.
I am a 7 eleven multiple franchisee , just want to add to you guys knowledge that franchisee does split gross profit dollars with corporate but doesn’t pay rent , utilities, expensive maintenance, and accounting expense. Vs in many other franchises you pay for utilities, rent , construction cost. All said 7 eleven is an affordable franchise as compared to many other models. Yes its got issues but is it all that bad !! Probably not. There is no easy money out there.
Thanks for the comment. You are absolutely right. We just like to give the other side of the story because many investors never hear it.
There is a 7 eleven by my house it's funny when he mentioned receipts, I don't ever recall getting a receipt, they r weird about that as if they don't want to use paper or are hiding something
Never use cc in 7 11 the Indians are gone steal it then copy it and buy a huge tv with it then sell it on cl
I would never eat at a 7-11, because Wawa, Royal Farms, Sheetz and so many other places sell better food. So, I can't imagine buying a franchise.
Why do they build right next to food store? I had seen three of them closed down completed.
the 7-11 around my area isn't clean, don't pay well, employees don't pay attention to customers, owner is not there anymore, black toxic mold is on ice machine n still nobody cleaned it for over a year n many more problems like bugs n mice!!
thanks for the detailed review of 7/11.i did worked for 7/11 long ago and now planning for buying some kind of franchise in USA possibly 7/11 but now got different ideas after your explanation.i am from Pakistan an would love to know more for any sort of business that qualify for immigration of my family
Thank you for visiting. 7/11 is not ideal for investor visa. We provide a free service to investors to help them identify the top available E-2 friendly franchises best suited to their budget and skills - details here: www.franchise.city/e2-visa
Please do a "Top 4 reasons this channel keeps appearing in my recommended section even though I never even considered owning a franchise and am currently living off of French taxpayers' euros" and I might consider subscribing.
Might.
Based on complex predictive algorithms TH-cam and Franchise City have absolute confidence that in the not too distant future you will control a vast franchising empire. Hitting the subscribe button right now is in essence - that "Red Pill" defining moment. Qui n’avance pas, recule!
Listen up 50% of the profit goes to rent, insurance of the property, property taxes, water bill and electric bill. And the other 50% profit goes to the owner.
Thanks very informative
7 Eleven: Sharecropping
Also, in personal life: Once a person has a certain belief/opinion of someone-no matter what new info presented-they will not want to accept counter intellegence.
Very true.
Honestly, this made me never want to shop at 7-11 again.
Why would anyone want to open any franchise? If a McD's is 1.5 million up front why not buy your own building and open your own restaurant? You can open a convenient store and order through a company like Polep that sets up displays for you or sell hershey's Ice cream where they supply freezers and equipment at no cost. It just doesn't make sense. All you get is a brand name. With the money you save you can create and promote your own brand on your own terms.
To many people, the attraction is a turn key business. They expect to have everything set up for them. Just show up and start making money.
This man is a saint for making these videos.
I live in Alabama and have been all over the south never have I ever seen a 7-11
Just to see a burnt out 7-11 clerk at the counter who works 12 hours a day 7 days a week between several stores was enough for me to say no thanks to ever put ANY money into franchising.....in fact I think I might never go back into a 7-11 because of poor business practices and exploiting immigrants.
A former neighbor of mine lost everything over a franchise he and his wife had ... it was heartbreaking to watch their house being repossessed along with everything else they had ... heard later that their marriage ended in divorce ...
We hear it all too often it is very sad. Thanks for the comment.
When money goes out the door, love goes out the window.
Good point on 7-11 being so bad that the E2 is denied. But the point on the split can be argued that this is not the basis for "investment" Because 50k per annum return on THEIR investment of 150k is not bad. Their share of a million is not the proper measure (it's not meaningless) but it's not the way you yourself measure success.
It's true I talked with a 711 franchise owner, they took 50% of what you earned and it gets higher depending on how much you earned
It sure is. Thanks for the comment!
Thank you for your honesty
what franchise do you have or what franchise is good to do? Dominos Pizza? What do you have to say about Dominos franchise, Sir?
I love your personality and demeanor
Thanks for the kind words!
Can you do a video on the best franchises to get in 2023?
You must be psychic! We just recorded that last week will be uploading later today. If u are subscribed you should get a notification. Don't hesitate to call Franchise City brokers for personalized help! www.franchise.city/our-services
Also be aware here in vegas the money is in your gaming machines. Not store merchandise
Just subscribed to your channel, thanks for the input!
Thanks for the sub!
Very good information thanks thank you very much
i forgot to say employees steal from the store n don't check dates on food n try selling broken or open things by taping item shut!!
I would love your opinion on bimbo bakery, they claim they’re the largest distributor of bakery goods in the world like to know what you think.
Awesome !! Video.. Thanks
Thanks for visiting!
I don't know how I found this channel but I'm big on entrepreneurship and business even though I have no interest in owning a franchise of any type but only critique is I wish to video stating color the entire time and not move to Black and White. If you can make a video on the five most important metrics to look at as success for any business including a franchise or artistic Endeavor that would be a cool video that I would like to see
I was chatting with one guy who was corp management, but they were wanting people to invest $25K to start....So that $150K is puzzling.
They currently are running promotions deeply discounting the franchise fees for new buyers. Good point!
$25K? $150K? Here in the northeast, the average investment is $500K for a 7Eleven. There are certain stores under $250K, but those are all junk and you will make nothing.
Awesome awesome educated video thank you you have a new subscriber and potential client.
owning any franchise doesn't seem like a good idea! thanks for the good info
I feel bad for stealing their gummies now
Lol
All I can say is don’t franchise 7/11. It’s like getting robbed by a thief whom you given your gun to and opening the door for them and tell them where the money is at. They only care about the money you make for them and they will only allow you to keep enough where you survive.
Thank you for the comment.
This is not just happening in America.
My tip of you want to be a seven eleven manager buy 3 or 4 locations close together and manage them
Dude if you have that kind of cash where you can buy three locations why would you buy a 711.
Nice video. Your suggestions are inline with my personal research. But surprisingly, your website recommends AAMCO which as per my research is even worse than 7/11, I can write a whole page on what is wrong with them and their model, similarly, MACO is not good either.
Thanks for the comment - to be very clear - our website doesn't recommend any franchise. The only franchises we recommend are those matching the specific criteria of the buyer as determined by our assessments. Market demographics, local demand and operator skill can make a "bad" franchise good and vice versa. These videos are general in nature and to be honest not very accurate in real world applications.
the SBA stated it was okay when I went through Boots for Business a month ago, but I have my own business.
I am figuring there is a reason that there no 7 Eleven in the Albany, NY or Saratoga Springs, NY area which corporate won't tell me.
What is the difference between being an employer and a franchiser? I’m curious to know why 7/11 is so adamant in saying they’re not an employer.
Good question! Several franchisees actually took 7-Eleven to court for that very reason. They lost. In eyes of the court at least 7-Eleven was able to prove they are not an employer. Details here: www.wagehourblog.com/2018/04/articles/california-wage-hour-law/federal-court-concludes-that-7-eleven-franchisees-are-not-employees-of-7-eleven/ Thanks for the comment!
wait, 7/11 takes 50% of the profit or 50% of the money you make? Because 50% of the profit is far more than just 50%... it's more like what, 75%? 90%? I mean if you LOSE money, then what does 7/11 take from you?
So what do you recommend to get into
Depends on a lot of factors. We take on average 20-30 hours with our clients determining the best fit for them.
Well it depends there are some stores with insanely high gross profit, sales of 4 million a year and over a million in pure bottom line profit... They are very rare but they do exist and a 50/50 split in those stores will be very profitable
In those cases it becomes more than 50% as royalties increase on earnings. unless they have an old store still under the old agreement. But agreed some established locations can do well.
No. I never heard of a 4 million store. I dont know of a 3 million dollar store in the northeast or midatlantic areas. An insane profit margin would be 40% and i havent seen that. So 4 million at 40% would be 1.6 million. The best franchise agreement is 48% for the franchisee. So you would have less than $800k. Then you have to pay 100% of the payroll, payroll taxes and workers comp. In a store doing 4 million that is going to be quite a lot. Still have to pay for store supplies and maintenance contracts. Any theft or shortages due to paperwork error are 100 percent on the franchisee.