Did you know that you can manage your own 7-11 outlet for as low as P300,000?
Yes, just P300,000 for a 7-11 franchise. Interested? Here are more information about this franchising opportunity.
Philippine Seven Corporation (PSC), country franchisee and convenience store operator of 7-11 stores in the Philippines, is offering interested franchisees an opportunity to operate their own 7-11 store outlet for just P300,000.
Take note, of course, that this is not the only amount you will have to shell out. Continue reading to get more details.
In 1927, Texas-based company Southland Ice Company pioneered the concept of convenience stores by opening stores that sell bread, eggs, and milk even after regular store hours. In 1946, the company renamed to 7-Eleven to reflect its then operating hours of 7:00 AM to 11:00 PM.
In 1982, 7-11 arrived in the Philippines after Philippine Seven Corporation (PSC) acquired the license to operate it in the country.
As of 2016, PSC runs a total of 1,995 stores nationwide, securing a 70% market share in the convenience store category in the Philippines.
Currently, more than 55% of all 7-11 stores in the Philippines are franchised.
Increased Competition vs. Mini Stop, Family Mart, Circle K, Lawson, etc.
The 7-11 franchise operator in the Philippines plans to farm out several corporate-owned stores to new franchisees. Franchisees are to be screened based on their “willingness and ability to run these stores full time,” according to Philippine Seven Corp.’s (PSC) president Jose Victor Paterno.
The move is meant to free up additional resources that PSC can use to further expand and open more stores nationwide.
This is surely part of 7-11’s bid to cement its position as the leading convenience store in the country, with the industry at present being shaken up by the entry of big, foreign players such as Family Mart, Circle K, Lawson, and Mini Stop.
The P300,000 Franchise Offer
Under the new 7-11 offer, franchisees need only pay P300,000 to take over an existing corporate store — that is, an outlet that has already opened and being operated by PSC for at least one year.
Do note, though, that the P300,000 payment is a mere deposit (sort of a “franchise fee”), which may be returned to the franchisee if and when the franchising contract is terminated without violation.
Of course, the P300,000 is just one of the, and not the only, cash outlay the franchisee has to shell out in order to continue operating the store.
The franchise owner has to spend on, among other things, employee wages, inventory stocks, and other store operating costs.
PSC, however, is offering to waive charges on electricity and maintenance on these franchised stores.
Profit Sharing Scheme
How will franchisees earn money?
7-11 franchises follow a revenue business model wherein the store’s gross profit is split between Philippine Seven Corp. (PSC) and the franchise owner.
For the reduced P300,000 franchise package, the profit share of the franchisee will obviously be lower compared to the standard franchising package. This is because the standard 7-11 franchise fee is more expensive, ranging from P300,000 to P1 million, and there are higher operating costs associated with running the store.
If you are interested about 7-11’s franchising offer, contact Philippine Seven Corp. for more information:
The Franchise Manager
Philippine Seven Corporation
7th Floor, Columbia Tower, Ortigas Ave., near corner EDSA
Mandaluyong City Philippines
Hotline: +63 (02)726-9968
Fax : +63 (02)705-5229
Mobile : +63 (920)950-8651; +63 (917)871-1686
Interested in other franchising offers? Check out: Complete list of Philippine companies available for Franchising
Information and Image Sources: Official company website, Philippine Daily Inquirer, Rappler, Philippine Star