So you’re thinking about buying a 7-Eleven and would like to know how much money you could make.
Well, contrary to popular belief, 7-Eleven owners don’t typically make Hundreds of Thousands of Dollars.
What they make varies greatly on their individual store, but here are some rough estimates:
To get a very rough idea of the income a 7-Eleven can produce, just take 5% of store sales.
- So a store that does $1,300,000 in sales will make roughly $65,000.
For a slightly more accurate forecast, you will need the following key factors to determine the possible income:
- Store sales
- Store GP% – how much out of every dollar you actually keep (roughly 36%)
- GP split with 7-eleven, 48-52 for the typical store (in favor of 7-Eleven) but will be worse if this is a high volume store, since your GP percent decreases as your total GP dollars increase.
- Payroll (including taxes & benefits) – A rough guideline is about 9% of sales, but this will increase if you choose to have a full time manager, get more traffic, or sell a lot of coffee.
- Other Expenses – A rough guideline is about 3% of sales, but could change significantly with inventory & cash shortages.
Based on these factors, a typical store without gasoline having sales of:
- $900,000 * 36% GP * 49% split = $158,800 GP
- – $108,000 expenses = $50,000 income
- $1,300,000 * 36% GP * 48% split = $224,600 GP
- – $156,000 expenses = $68,000 income
- $2,000,000 * 36% GP * 47% split = $338,400 GP
- – $240,000 expenses = $98,000 income
These are still rough numbers, but I would guesstimate that the standard deviation is about $10K, meaning that 95% of all 7-Eleven’s with the above sales will have incomes between $50K – $100K with a variation of +-$20,000 depending on the operations of the specific store.
So the overall range for the income of a 7-Eleven (without gas), with sales between $900K – $2mm is between $30K – $120K.
If you are considering purchasing a 7-Eleven and would like unbiased answers to all of your questions as well as advice on specific store locations:
Contact me at: c-store-expert@greatconsult.com for a FREE e-mail consultation.
If you would like me to visit the particular location I will be able to provide you with a more exact estimate of the store’s income potential .
Convenience Store News & Information 
October 1, 2008 at 3:07 pm
Dear Sir,
Based on your estimates, which I am sure are close to reality, the rate of return on my investment actually dramatically DECREASES as the store sales increase:
1) Below Average: Sales $900,000
Investment:$156,600
Income 5%: $45,000
ROI: 45,000 / 156,600= 28%
2) Average: sales $1,300,000
Investment: $377,000
Income: $ 65,000
ROI: 65,000 / 377,000= 17%
3) Above Average: Sales $2,000,000
Investment: $ 710,000
Income: $100,000
ROI: 100,000 / 710,000= 14%
I am sorry but this whole thing does not make sense. It goes opposite to the law of economies of scale. Could yoy please clarify?
Saleem Khan
October 1, 2008 at 4:19 pm
Saleem,
You are absolutely right in your observation.
There are two main factors that cause this phenomenon:
1. In the current franchise agreement – as the gross profit dollars that a store produces increase, the split increases in favor of 7-Eleven Corporate. This is very similar to the US Tax system… The more you earn, the higher percent you are taxed.
2. An increase in store sales will lead to an increase in store payroll (a franchisee’s biggest expense) , so it is easily possible for a $1.3mm store to be more profitable than a $1.4mm store (because you are forced to hire an additional employee around $1.3mm). Ofcourse as sales continue to grow, the profit they produce starts to overtake the payroll expense. It would be rare for a $1.6mm store to be less profitable than a $1.3mm.
The last thing I didn’t include in the calculations was the number of hours that a franchisee would be putting in per week. For store #1, the franchisee would more than likely be working one shift themselves (while doing ordering, cleaning, or paperwork) thereby saving about $15K – $20K a year on payroll).
Let me know if you have any other questions.
January 4, 2011 at 2:13 am
For store #1, how many hours does the franchisee generally work in one shift? Could you pls. clarify on how the franchisee can save on payroll? Can he put himself as an employee + franchise owner operator? When you said saving $15K- $20K a year on payroll will this increase to your estimate of $50K income for 900K sales? Thanking you for your reponse.
January 4, 2011 at 2:19 am
Franchisee can work as many hours as they’d like … if that’s what you’re looking to do. The only other ways to save on payroll: hire good people, and train them well … or understaff your store and miss out on sales/profits. The amount of hours the franchisee works himself will go directly toward their bottom line. 20 hours per week on the register * $7/hour * 52 weeks in a year is over $7K in savings, but once you factor in payroll tax and more it’s more like $10K in savings per 20 hours/week worked. This only makes sense in low volume stores, where the franchisee can multi task working the register and doing other things such as ordering, or cash report.
January 25, 2016 at 2:07 am
In Saleem’s observation on ROI, why would I want to own anything but a low volume store? Wouldn’t it make sense to have 3 low volume store that make 50K at 160K purchase than the 2 million dollar store that nets 100k at 700k Investment? just food for thought i guess. give me the low performing stores at a lower price instead of buying an overpriced 100K store. You may be able to grow the sales and save on investment. is this correct thought?
January 25, 2016 at 12:04 pm
It doesn’t quite work like that. First, there’s no guarantee that you can increase sales and save on the investment. Most low volume stores will stay low volume, unless the area is undergoing significant changes (or if it’s a new store, that’s still being discovered). Second, how are you going to run 3 low volume stores? There’s only one of you, so you can’t be in 3 places in once. You could MAYBE run two low volume stores, maybe, if you’re extremely capable and want to waste your skills.
So the benefit of the higher volume store is that it will eventually (once you learn how) demand less of your time by hiring a manager, which in turn allows you to get as many stores as you want. If all your stores are high volume, you can have 4, 5, even 6 stores without being any kind of c-store genius.
Hope that helps!
October 14, 2008 at 12:40 pm
Does your ROI analysis assume that you have the cash to put down as an investment rather than borrowed money?
thanks
October 15, 2008 at 5:45 pm
Jerry – The numbers I listed were just the profits you can expect from a 7-eleven with given sales and gp% … But in Saleem’s comment the ROI was calculated with 100% cash invested.
January 31, 2009 at 4:25 pm
Dear Guru,
You are way underestimating what a 7-eleven franchisee can make. I own 3 7-eleven franchises. Trust me, the potential for a husband wife team to make over 200k annually on a high volume store is very real.
February 2, 2009 at 12:13 am
Dear Tony T.,
I’m glad to hear that you have some great stores.
You are correct that there are stores out there that are producing great income for franchisees… I’ve heard of some stores that make as much as 300K. Unfortunately those stores are few and far between. In the area I worked… out of 105 stores, the store with the highest income only generated 130K for the franchisee. Income varies tremendously on store location, gas, and other factors. The numbers I give are a general averages for the country and do not include income from gas, which can be very substantial in certain cases.
7-Eleven is a great business, as long as you have the right skillset, temperament, and do your due dilligence before selecting a location.
June 30, 2009 at 5:29 am
T. Trotter,
I am about to become a 7-11 franchisee and would love to speak with you for a few minutes about your experiences. Is that possible?
Thanks..
September 18, 2011 at 5:48 pm
High Volume… When you say high volume what figures you are talking about?
What could a store doing 1.35m can make?
February 16, 2012 at 12:01 am
Thank you and you are absoloutly right. I dont give a care to any of the ROA or ROE, and I don’t know of it either, but this what I know that, if you want to make money out of it you can do it but if you are not a hard worker you wont do it anyway. I am in same kind of business and never calculated of income going out or coming in but one thing I know for sure I am making money with out having any consultant or a hight colleger degree.
March 23, 2009 at 6:37 pm
Need more information, i have emailed you on the email but didnt get any reply, please any help will be much help.
by the way i love your articles.
thanking you
takashi
July 16, 2009 at 11:44 pm
Guru,
Great articles. I really enjoy how you “tell it like it really is.” Trust me, after 16 yrs in the Marine Corps, I really appreciate that. I am entertaining the idea of buying into the 7 eleven franchise, and one of my question were; with a store with gasoline, how much more of a pain would that be to manage and is the return worth considering buying a franchise with gas pumps?
July 22, 2009 at 9:50 pm
I really enjoyed this article, I would like to find more information like this in the near future. Specifically, experience and educated needed to open a 7 eleven franchise.
Kevin
January 4, 2010 at 4:36 am
Dear Team,
My question is very simple, what is the process for the skilled immigrant to start his/her own 7 11 franchise???
Regards,
Monam
February 7, 2010 at 9:04 am
Hi what is the process for opening a 7-11 outside the US/ international?
February 19, 2010 at 5:44 pm
Good Evening,
My name is Jack and I am currently creating a business plan for the purchase of a 7 Eleven on Flatbush Avenue Ext, Brooklyn, NY. Unfortunately, I have waiting for a location in Long Island; however as a new franchise I only get opportunities at those less attractive locations. The total cost is approx 230K for the NY 5 B area; I am interesting in knowing what you believe a typical draw/salary would be (wkly, monthly, and yr? How long to pay back and amts? What do you think about the area? I am certain about crime approx 2-3% and finding quality employment for the evening hrs thru the following morning maybe difficult. I am thinking about working the AM thru PM shifts thru 6-8pm. I am short for the franchise fee and would need a loan or tap into another resource for the balance. My max out of pocket is $125K-$150K; therefore I would assume a loan with interest for the balance as the 1st option.
Whatever information you can provide me would be greatly appreciated, I do not want to make a mistake by going ahead w/ this franchise if there is no salary and no future opportunities in 1.5-2 yrs to purchase another 7 Eleven. The greatest risk for me is if this does not work I am losing everything the 4 walls, current management job in managed care, etc. Nevertheless, I am in need to get out of the managed care health insurance business due to all the changes and no growth. Finally, if you know of any other strong short/long term business opportunities; I am open to all ideas and suggestions. Thanks again for all your information and experiences. Thanks, Jack
May 24, 2011 at 7:09 pm
How did you make out with your decision and was it worth it if in fact you took the B area store?
March 11, 2010 at 4:23 am
Great information. You said income for a store with $900K sales is $50K. Does that income include an imputed wage for the owner operator? Or does the owner operator enters into the payroll to get to the $50K income with that sales?
Thanks.
March 11, 2010 at 7:20 pm
Nigist – That income includes the franchisee’s wages, but a franchisee typically pays themselves a weekly “draw” (which is in essense a paycheck).
August 13, 2010 at 9:53 am
Looking into 7-eleven franchises. Have found out that stores for sale in my area (south FL.) have GP’s of 34%. 7-eleven takes 51.1% of that. The franchises pay 11% of Gross sales for labor and and 4.5% of gross sales for operational costs ie advertising, equip and propty maint, etc. Seems to me that recent 7-eleven franchisees are survivng off a few days of cash float. According to my calculations, a store with gross sales of $1.5m earns a Franchisee a net profit of $22K a year . Maybe I’m missing something, but for a $150K investment and a 50-60 hour week work the Franchissee is buying himself a part time job with a mass of responsibility and pain.. I’d appreciate any comment or advice you may have.
August 18, 2010 at 11:26 am
This is definitely not an easy business, and you are absolutely right about it being the equivalent of buying yourself a job. You are missing something though, because the slightest change in your top line numbers has a huge impact to the bottom line. A franchisee with the numbers you describe will more than likely be making around $80K per year.
October 17, 2010 at 8:31 pm
Any help with info on a location when you own everything and pay 7-11 20% of gross profits.
December 24, 2010 at 3:14 am
I find it to be a good option for poor store operators (if you own a store in excellent location, but for some reason has really bad sales/profits, this is probably a good option). Good store operators should usually do better on their own.
October 18, 2010 at 6:02 pm
Hi…
I am looking at new location in Philla area. The store is gas location. Total investment is $243. My biggest challenge is that i am not sure what will be the sales… in general which is better opportunity in 7-11 business, new location or existing one?… i know in existing one you have more investment but you know the numbers. Any comments will be appreciated…
Thanks,
MP
December 24, 2010 at 3:17 am
If you have no way of getting the sales numbers, you need to watch the store on different days at different times and do your best to estimate customer counts … then multiply by a typical average transaction for the area (you can use $4 if you don’t have a clue, but it would be better to get a more precise number) … this should give you a pretty good guestimate. Good luck!
January 4, 2011 at 1:21 am
Is 50000 income after/before tax?
January 4, 2011 at 1:40 am
LOL 🙂 Before tax…. Always before tax.
April 30, 2011 at 11:28 am
# $900,000 * 36% GP * 49% split = $158,800 GP
* – $108,000 expenses = $50,000 income
yikes, 50k in my area is poor. you are just scraping by. better off just getting a regular office job. starting engineer here makes 70k with no experience, and no 350k initial investment. Doesn’t make any sense on why would someone do a c-store, I must be missing something.
someone above said that hubby + wife team clear 200k/year. all you need is the same team with advance degree and you can clear 300k/year easy. 40-45 hours work week, and weekends off. paid vacation, stock options, 401k, health benefit, free life insurance. You don’t even have to work that hard, my company is full of dead woods all making > 6 figures.
January 24, 2011 at 5:21 pm
Guru,
As a young but highly eperienced entrepreneur(i have been operating my own used car dealership for 6 years) I am at a loss of understanding with this 7-11 opportunity. I am currently saving my pennies and taking a shot with a $250-300k Investment in a 7-11 Franchise. My question to you is, what is the “sweet spot” for gross anual income of 7-11 store with gas? (for highest yield to franchisee) Because of the constant bottom line change with ANY top line change I am at a loss to understand what kind of store/formula I should be looking for.
P.S.- This website is truly a gold mine!
December 9, 2013 at 10:56 pm
The gas doesn’t make a siginficant difference unless it’s an extremely busy gas store. For sales, you’re looking for the highest possible sales with a decent enough margin… minimum $1.2mm, but preferably over $1.5mm in sales with a margin over 35%. Alternatively, if the store has a margin over 39%, you can probably do a $1.1mm store as well.
Your decision will also depend on your minimum income requirements.
February 1, 2011 at 11:41 pm
so my father is interested in converting his deli into a 7-11. Initially, I was excited about the opportunity for a number of reasons. My dads business is not doing all that well right now, and he has to spend a lot of hours alone because he cant afford to pay additional wages to employees. He is getting older and I worry about his health. Also, as I stated earlier, business isnt going all that well and he is having a real tough time paying the bills. My feeling was that, once he converted to a 7-11, the business operations would become much more streamlined, and he wouldnt have to worry about the stresses of running a deli alone all the time. Also, you obviously want to reap the rewards of having a recognized name brand company such as 7-11, which one would have to assume would bring in more customers on a daily basis. But after reading up on it, Im getting more and more of a bitter taste in my mouth about the whole thing. Just looking at the numbers, and what a franchisee can expect to earn yearly, sounds pretty ridiculous when compared to what initial and ongoing investments take place(both time and money). WHy would individuals go through all the hassle, stress, nonassuarance, etc knowing that your earnings are really limited? Am I wrong in getting all pessimistic about the opportunity. I am personally saddened because I was also looking forward to taking over the business and making it a career for myself.
June 3, 2015 at 6:13 pm
I am in the same situation having the same thought of looking to invest, and from what i have been reading ^^^^ Geez they are greedy ant they! As someone mentioned before better of behind a office desk.
Ridiculous.
May 3, 2011 at 9:45 am
I owned a seven eleven that had the following:
1,325,000. In sales
37.25% GP
$49356.50 Total GP
49% split $241,845 My cut after seven eleven royalty
This is where I would start taking out all expenses:
Payroll: $92,000 (My employees were trained well, and I worked some shifts)
Payroll tax: $8,500
Inventory Variation: $4,500 (this can kill you if you don’t control it)
Maintenance Contract: $9,000
Taxes License: $9,000 (every area is different)
Rubbish Removal: $3,200
Workers Comp: $6,800
Credit Card Expense: $8,900
Misc: $4,500 (phone, bad merchandise, Janitorial etc.)
Total Expense: $146,400
Total GP $241.845
Total Profit for Franchisee: $95,445.00
This is actual numbers that I have made from my store. If you don’t control your labor or inventory…yes your profits will drop down. I agree with a comment about a husband and wife team that made over 200K..and that is possible (this are running a tight ship with low labor, and great gp margins, I take my hat off to them). This is a business in which you have to be involved and get to know what is going on in your business. I would not recommend it for someone who is looking to be absentee and expect to make 100K the first year (honestly I don’t think that would happen, unless you got a store in Orlando doing over 3.8 million in sales, which there are none left). I encourage everyone interested into becoming a franchisee to learn as much as they can about what they are getting into. Can you work a graveyard shift if needed after working 8 hours during the day? This can happen (luckily it has not to me… the chances are there). Hope this helped out some.
Sukh
June 15, 2011 at 12:12 am
Thanks Sukh
September 10, 2011 at 5:13 pm
Since this post is old, I don’t know if you’ll receive this response. Thank you for breaking down the numbers so specifically for your store. That’s a good income, I think. I would really like to get additional information from you, as what you have provided already shows a person who is meticulous and straight-talking. I am considering becoming a franchisee and want to “know what I’m getting myself into”, as you say.
Jon
May 25, 2012 at 1:41 am
Hi Jon, yea… I don’t come back here very often anymore because I’m busy with other projects.
May 12, 2012 at 11:49 am
Thank you for the details, very helpful, just one question, was this a gas store? (I’m assuming not since you make no mention of it…. Tony
May 17, 2012 at 7:59 pm
This was not a gas store.
May 11, 2016 at 2:34 pm
Hi Sukh,
Thanks for very informative posts. would u please tell more about inventory variation. Thanks for your time. darli.
April 11, 2012 at 10:41 am
whats roi mean
May 25, 2012 at 1:38 am
Return on Investment
May 24, 2012 at 7:22 pm
I own three 7-Eleven stores in a major metropolitan area for 15 years. I’m planning on getting more stores ONLY without a goodwill because the ROI from a goodwilled store is very low. I patiently wait for new stores or a deadbeat FZ to get the boot from the company. Trust me, the way this franchise system is set the ROI is terrible for goodwilled store due to high franchise fee.
May 25, 2012 at 1:26 am
I have been with 7-11 for several years working with franchisee side of the business not for corporate. I have seen many things, and ways to make money while doing this business. This business is not for those who have no clue nor for those who haven’t worked at a 7-11 before nor if you don’t have any friends or someone to teach you the system and also all the good sides to it in the back room where all the accounting gets done and records are. 7-11 is a big company making money from selling their own products in the store to the customer and from selling their own products to you to sell everything from 7-11 hot dogs to chips to ice cream to candy to drinks etc. 7-11 Inc announced that it made 76 Billion dollars in 2011 globally in sales from their store sales though including corporate and franchisee stores. 7-11 Inc also makes money from their products that they own which you buy to bring to the store, so 7-11 is very brilliant, smart and competitive in the market and innovative. A typical store makes average $800,000 to 1,250,000 up to $2,500,000 for stores in better areas. I worked with a very smart family, who owned more than (17) 7-11 stores. Each store has their own manager, and at least 2 full time employees and up to 3 part time employees. One of his stores was only making $1,150,000 a year in sales but while earning him more than or close to $100,000 in profit for himself after expenses and payroll. It is more than possible to earn $150,000 while working 30-50 hours per week or less making or checking orders, doing accounting, payroll, and tracking store growth effortlessly but you have to make the right choices.
May 25, 2012 at 1:33 am
If you invest at least 30-50 hours per week, track your store, hire and train good people as best as possible, then it is more than possible to make at least $150,000 up to $250,000 per store in yearly income but that all depends on store location, sales, profit, # of employees, & agreement with 7-11. The amount of money can decrease depending on how many stores you have and how you manage or how much of your own time you decide to invest in the business. I think anything is possible.
May 25, 2012 at 1:37 am
“more than possible” is a bit of a stretch 🙂 But if you can do it, more power to you! Out of the 100+ franchisees that I’ve met or worked with at some point or another, only a small handfull had stores making $150K or more. Most were somewhere between $60K-$110K.
May 25, 2012 at 1:50 am
This business is a penny business. Every sale, transaction, effort, piece of inventory, write off items or expired items,…. it all counts and makes dollars which turn into thousands of dollars easily in a short period of time. Every store has thousands of dollars worth of inventory, and each store has ability to order thousands more in inventory when ordering for daily and non-daily items. What’s the most important fact is that, you yourself’ have to be trained, and knowledgeable first before anything, and then hire or keep dependable, honest, hard working individuals to train them and teach them techniques and ways to get around the store and finish all required activity during the shift he/she is working while providing excellent customer service. You have to also be careful, mindful, of customers and employees. What I’m saying is that everything counts, and makes a difference. You could sell 20 coffee cups a day or sell 80 coffee cups a day or between 90-200 coffee cups per day with increase in store traffic for newspapers, lottery, milk, breakfast/lunch sandwiches, taqitios, drinks, and etc. thus increasing your store sales and profit. Having a clean store, respectable people, knowing the area, or getting to know the customers and responding to their needs is all important. A major way to make more money, is by bringing in merchandise from the outside of the store. There is a loophole in regards to that topic which 7-11 doesn’t like but you can do it. You can bring in products or merchandise to sell inside the store, making money from buying the product first, then by having it brought to the store, and third by selling it. The potential is very high to make more money in this regard but this is possible more in the established stores and not the new ones being built which 7-11 has a tight strict control over and rules that cannot be ignored, or sidestepped since 7-11 can cancel your contract if you do not follow the guidelines. However I am only sharing what I know and know that happens in many 7-11 stores throughout the country.
June 4, 2012 at 8:27 am
Just one question, how much could be the net profit by 7 11 store with fuel, low volume store.
I m thinking to get into it so someone can answer my question would be much appriciated
June 4, 2012 at 10:25 am
The profit on fuel in the US used to be 1.5 cents per gallon sold (might have changed). You’d need to find out what the margin is in your areas to do an accurate an estimate.
December 9, 2013 at 10:32 pm
Gas right now ranges from 7 cents per gallon to 23 cents per gallon profit, dependent on the supplier and cost of detergents put in the gas. I know many stores that charge a lot more than what they pay (up to 40 cents which is ridiculous) for it until it’s just about depleted, which is a poor business model in my opinion. Typically if you charge 1 cent less than your competitors, you’ll be swamped and easily make the difference in volume versus total profit per gallon. Instead of getting in 8,900 gallons of regular, you can get in 3,000 gallons, charge a competitive rate, and make up any lost profit in the volume will now pump. If you are pumping the volume from examples 2 and 3 below, you’d probably be getting in full loads.
Example 1 – store sells gasoline at $3.50 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.38. Store sells 1,000 gallons per day and makes a profit of $380.00.
Example 2 – store sells gasoline at $3.26 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.14. Store sells 4,000 gallons per day and makes a profit of $560.00.
Example 3 – store sells gasoline at 3.25 per gallon. Cost is $3.12 per gallon. Profit per gallon is $0.13. Store sells 5,000 gallons per day and makes a profit of $650.00.
These are fabricated numbers and do not hold any merit as to what actually happens in one of the most volatile markets in the world, nor can I speculate on what happens at 7-11 or what their distribution charges are for gasoline which would have effects of the profit margin unless the delivery is built in to the price. But 47% profit of just $500.00 per day is $235.00, over 7 days is $1,645, and over a year is $85,540. I’m sure I didn’t follow the model accurately enough, but not bad for gasoline.
The bottom line is that most consumers, unless they are loyal to a brand of gasoline, will likely go to the cheapest price, and let’s face it, in today’s economy, who can blame them. Get them to your place for gas and they’ll buy something else most of the time.
I’ve seen many stores (not 7-11 and I have zero knowledge of their gasoline model) sell well over 100,000 gallons of gas per week, every week, and the scales tip towards 150,000 gallons during the busy months, sometimes topping 35,000 gallons in one day.
Gasoline can be a dangerous business, the expenses are higher, the training is more in depth and time consuming (as you want each employee to know EXACTLY what to do in case of a fire), and there’s a dozen ways to accrue shrink in the gasoline category that’s out of your hands (like evaporation from the tanks and repairs for idiots who drive away with the hose still in their car).
December 9, 2013 at 10:42 pm
Hi Jeff, just wanted to thank you for the insightful comment. 7-eleven corporate does not let their franchisees profit from gas, the 1 or 1.5 cent per gallon (whatever it is right now) is meant simply as a means of paying for franchisees for the extra costs of running a gas store. Franchisees also don’t control the price of their gas … if they did, they would ofcourse choose to undercut their competition to bring in more business. Instead, 7-eleven gas price strategy is usually to be the same as higher-end gas providers in the area.
June 15, 2012 at 10:04 pm
As a 7 eleven franchisee I would say this is pretty close to reality of how much a franchisee can earn. Dont be surpirsed if in winter months you acutally have to give money back to 7-Eleven corporate. Think of this as you are buying yourself a job. Unlike other franchises 7-eleven corporate does not gives you a lot of decision making room. You will be monitered and pressured to do things the 7-Eleven corporate way.
June 15, 2012 at 10:11 pm
Corporate changed the contract on fuel approx. couple of years back. Currently franchisee gets 1 cent/gallon on fuel sold. Franchise fee for fuel was $20,000+franchisee fee. They recently went on an auction system to franchisee the stores. Before there was a set franchise fee for store based to sales. Now they set the franchise fee but acution the store, so whoever pays more wins provied he is qualified through 7 Eleven corporate.
December 9, 2013 at 10:38 pm
1 cent per gallon is horrible and I feel bad for the franchisee. Nationwide average today is $0.21 per gallon.
August 7, 2012 at 6:48 pm
I don’t think this is a profitable business.After investing money if you earn only 60K than its better to do a job.By doing any job in australia you can earn 40 to 50 K. 60K income is estimated if you achieve that much sales volume if not, than there will be a loss.
May 20, 2013 at 1:44 pm
Do you have any articles like this but that include gas?
May 20, 2013 at 2:03 pm
Unfortunately, I do not, because in my area there simply aren’t that many gas stores, so it’s hard to provide accurate estimates.
December 12, 2013 at 6:53 pm
I have three stores right now and all my three stores are located in Washington dc and I have three managers in each stores and my stores yearly sales are almost the same which is 2millions and more so with these sales and with out going to each store everyday can makes easily 175,000/years so its so good business but make sure you choose the right locations
March 25, 2014 at 6:44 pm
Sounds like a VERY successful franchisee. Probably top 0.5% nationally.
January 28, 2015 at 8:05 pm
Woundim, is that 175,000 per store? How do you keep your monthly expenses so low with those sales numbers? How much do you pay your managers? And don’t you have inventory shortages in DC?
June 22, 2014 at 3:03 pm
Guru why you have negative impression about 7-11
September 7, 2014 at 10:20 am
I do not have a negative impression of 7-eleven. I offer an unbiased perspective.
August 26, 2014 at 5:53 pm
What is the effect of SE opening a new store close to the proposed store for sale
Thanks
September 7, 2014 at 10:19 am
A negative effect. It depends on the neighborhood and how close the new store is, but usually you will take a hit in sales.
September 6, 2014 at 6:27 pm
Dear Guru,
I recently bought a small convenience store in Western Australia. Now the first 7/11 store is coming up 100 mtrs from me in few weeks from now. How much do you see on me for this? I am worried.
September 7, 2014 at 10:15 am
Sorry to hear that. It’s definitely a problem. I would not want to own your store right now.
September 8, 2014 at 3:20 am
Dear Guru,
Thanks for your reply, few more clarifications. My store is supposed to turnover 4,50,000/- a year which can give me a net profit with my wages of about 70,000/-. How much can 7-11 hit me? Mine is also a good location. Are 7-11 very cheap for customers in Australia? Do you suggest I should sell my store as early as possible? Please advise.
September 8, 2014 at 10:12 am
I have no knowledge of 7-eleven Australia specifically. What I do know is, generally speaking, 7-eleven typically outperforms an independent store because they have better systems in place and brand recognition (in U.S.). The brand recognition may not be as big of an issue for you in Australia, or it could be a bigger issue because of the novelty of a new 7-eleven they’ve never seen before. What I also know is when a competitor opens up right next to you, it’s going to cost you sales/profits no matter what, and can potentially put you out of business since customers generally prefer to shop at the newer, cleaner, store. So to your question, based on the information you provided, I would sell unless there’s something that you can offer customers that 7-eleven can’t … even then I would still probably sell.
September 8, 2014 at 9:45 pm
Dear Guru,
Thanks for your valuable advice. Unfortunately, I shifted few months back from India, chose this beautiful location and put my all money in store. Its not easy to sell as I need an alternative. Its in a tourists place and customers are a mix of regulars and tourists. This is very first store by 7-11 in Western Australia, Perth. Anyway, I need to figure out my next step based on your wise advice. Thanks indeed.
October 5, 2014 at 8:53 am
Good morning Guru
Super informative articles
I am looking at becoming a franchisee and the store sales are $1.5m gp is $485k %of sales is 31.46%.
the location does do gas but not calculating that as it only pays 1.5Cents/gallon
I plan to work in the location and average about 45 to 50 hours a week and my wife about 30 hours a week and the average would be at about $10/hour(florida market)
After reviewing the sales and earnings report and put pen to paper it looks like net profit to be about $69,500
does that sound accurate??
October 5, 2014 at 9:33 am
That sounds about right. You can probably do much better but you really need to increase the GP%.
May 18, 2017 at 8:46 am
When anyone quotes income eg Bill said $69,500. Does it include the hours he worked in his store or that only the profit after deducting his work hours ( 2500 hours worked a year @ $9.00 = $22,500). Does it mean end of the year Bill made 69,500 plus the hours worked 22,500 total $92000.00. Guru If u can Please answer this.
May 18, 2017 at 11:59 am
Typically a franchisee does not pay himself an hourly wage, so “income” is how much they made despite the number of hours worked. If you decided to pay yourself an hourly wage and it added up to $22,500, your income would then be reduced by $22,500. This is not in your best interest because you would be paying payroll taxes on that money instead of just getting it.
March 31, 2015 at 9:19 pm
I don’t understand, why is there no rental expense as part of this calculation? Is rental part of some other cost? 7-11 gives a location to you rent-free?
March 31, 2015 at 9:42 pm
Correct. Rent is paid by the corporation.
April 6, 2015 at 6:32 pm
Yes. 7-eleven pays rent and/or property taxes
April 12, 2015 at 2:44 pm
Dear sir I am willing to buy a seven eleven in Australia do you know anyone who can I get consultation . Store price is 1.3 million including goodwill franchisee fee and inventory.Seven eleven giving $430 K commission per anum to franchisee has to pay work related expenses . Could you help me out please .
May 21, 2015 at 9:47 am
I am looking into 7-Eleven and the store i am interested in is about a year old and they ended up doing about 900K business. It occurs to me that the business is fairly new (it use to be off brand gas station, but 7-Eleven took gas out and made just store). I plan to work about 60 hours, I just want to get sense of how much income i am shooting for (including profit and salary).
Appreciate any help I could get!
February 19, 2016 at 3:24 pm
I have some questions regarding benefits. Do franchisees get to participate in medical, dental, and retirement planning (401K) plans?
February 19, 2016 at 4:02 pm
Not that I’m aware of. There are some sort of group discounts through the Franchisee association, but I don’t know the details.
June 24, 2016 at 9:32 pm
I was all in with 7-11 until I read the stuff. 1.3 million in sales and a 50k profit? That’s just bad business from the start. I wish I didn’t send the application. Then hearing they can cancel your franchise if you violate their rules? Another “no thanks” for me. If you sell anything with million dollar yearly volume and don’t make 100k easily your robbing yourself. I can’t see myself watching pennies like gold bullion. Frankly, that’s what you’ll be doing daily. I don’t mean to be a downer and surly wish everyone luck and profits. I just saying for me it’s a bad deal. Thanks so much for the stuff here.
June 26, 2016 at 9:30 am
It’s a franchise, so your expectations should be different than your own store. The 1.3 store is making $100K, just $50K of it is going to corporate.
September 1, 2016 at 9:37 pm
Basically your buying u r self a job by franchising 7/11 if you are making 20 dollars an hour at your job u r better off keeping your job.these numbers r shown how much profit u could make that’s if u have tight inventory control otherwise you could loose money.it’s 24 hour headache.
September 19, 2016 at 5:00 pm
I am confused, So 7-11 Corporate is paying rent and property taxes, who pays for maintenance and upkeep on Bldg.or CAM charges?? Does 7-11 Corp. sign the lease for your Franchisee store? or does franchisee sign lease and 7-11 corp credits Franchisee for rent and property tax charges?. And if typical store is 2500 sq. ft. and average monthly rent with property tax for a decent location is $2.00 per sq. ft. ($24 annually) ft. then rent w/prop tax is going to cost to 7-11 $60,000, so if the store gross sale is only $1.3 mill store, which would means it make approx. $100K, with $50K (assuming your 2008 est. are still good today) of that going to 7-11 corp., then is 7-11 Corp. is losing -$10K ??? or do they just up the percentage they take for store until they at least break even?? In the case of low grossing stores then do they terminate lease when lse. expires if 7-11 corp is losing money.
I am considering 1.1 million gross sales store, run by corp now, is this considered a low grossing store for 7-11 corp, would 7-11 keep it open if it does start making more $$$? What is the safe rent to gross sale ratio for a 7-11 site? Is selling gas at site make it a more valuable store?
Thanks for any help anyone can give, SS
September 19, 2016 at 8:06 pm
7-eleven corporate pays for rent, property taxes, and most repairs/maintenance.
Your math is not quite right because you’re splitting the gross profit twice. In a $1.1mm store with 35%gp, the GP$ = $385K, so corporate will get approximately $192,500 (depending on the details of the agreement). Then out of that money they pay for all the things they need to, so yes, to your question if the rent is too high for the sales, the store can and will be closed. This is a function of both the rent and the sales/gp, so it really depends on the store.
In general, this is not really a concern for you as a prospective franchisee, unless the current lease on your store is very short, or the store is just terrible. Selling gas is very profitable so of course it significantly raises corporate profitability (franchisee only makes $0.015/gallon, so the rest goes to corporate). At the same time, the gas location has more expensive rent so it’s all about the details.
Hope that helps.
September 20, 2016 at 11:45 pm
I am looking to buy 7-eleven franchise for my wife. I found the location I was really interested in, Now I just got to know that there is Starbucks coming in on the same property across the 7-eleven. 7-eleven and Starbucks will share the property line. 7-eleven Store is doing good at this time, sale it 1.7 to 1.8 million a year. How Starbucks going to impact the 711? Is this a good move/investment. I am paying around $300,000 all together. Lots of people saying it can go either way, since there is no another convenience store around that neighborhood and the other stores are few blocks far away it might increase the sale by Starbucks bringing more people in and they will stop by to get the items that Starbucks doesn’t carry, or It can decrease the sale by 5-10% because people will stop by Starbucks to get coffee and breakfast.
Thanks for any help anyone can give
September 20, 2016 at 11:49 pm
There really is no easy answer/forecast to give you here. What you’ve heard from others is pretty much what I would have told you.
On the one hand you will loose some coffee and breafast business, but on the other hand you may get new customers for everything else.
Generally speaking 7-eleven and Starbucks have pretty different customers, so the impact on either side may not be particularly significant.
Keep that coffee bar fresh and stocked at all times and always have coffee advertising on the windows.
Good luck!
September 21, 2016 at 12:18 am
Thank you for your response. It been really stressful lately. I got a great job making $80,000 a year. My wife wanted to start some type of business and started looking into 7-eleven. I can help her few hours a day and full day on my day off.
December 31, 2016 at 7:54 am
Great aticle.how many hours in week franchusee need to work this income.
January 17, 2017 at 11:29 am
60-80 initially, then 20-40 eventually.
January 25, 2017 at 5:11 pm
Thank you so much you Been very helpful .
July 22, 2017 at 10:30 pm
7-11 is really a simple and easy business, if you know it. Otherwise even 2-3 months training wont do any thing. If you are disciplined, hard worker and not too much greedy, you will be fine. The initial investment amount varies largely, depending the location, i meant state. If you are in Texas or in Florida they even have that ZFF. (ZERO FRANCHISE FEE)
July 25, 2017 at 1:03 pm
what about a 2 million inside sales store with on average 7, 000 gals. ofriel per day.. i am running a store that will eventually be convwrd to a 7Eleven via a corporate purchase. i am anticipatng being offered the option to franchaise the unit. or be a field consultant with 7 Eleven. beginning to weigh my options.
i am not a cigs. atore. most sales 85% are non cig. sales. i also have a Subway franchaise i the store making 7,000 a week in sales.
September 28, 2017 at 3:43 pm
I have a question. What if you buy the property where your 7/11 location would be. Would 7/11 corporation pay you (landlord) rent for having the 7/11 franchise on your property? Typically, how much does 7/11 pay for rent in California, such as Sonoma County? This interest me because not only would you be getting your profit from the franchise, you will also be getting rental payments from 7/11 INC.
Thank you!
September 28, 2017 at 4:07 pm
If the property is for sale and you have the money to buy it, nothing is stopping you. The cost would depend on the specific property.
October 9, 2017 at 7:19 am
I was thinking of buying a 7/11 franchise with a hope that I will still be able to keep my 175k/yr job while maintaining the store part time, later in the evenings. Is it possible? Is it even worth it? Another option would be a laundromat since that would be less time consuming, although income will be very low but it would allow me to keep my job. Any thoughts?
February 12, 2018 at 8:45 pm
Wow! I’m impressed….I like everyone’s opinions, the are all very helpful, however, How in the world 7-11 takes 50% of the profits? That is a freaking rip-off You are basically buying yourself a job, really outrageous.
February 16, 2019 at 4:53 pm
I am into buying a franchise of 7-11 here in the Philippines. I would like to know how much is the lowest profit and the estimated highest annual profit. Is it also goo d to leave my job and concentrate on the business. I need help and clarifications. thanks