How much does a 7 eleven franchise owner make? (2024)

How much does a 7 eleven franchise owner make? (1)By JonasPosted on June 4, 2022October 6, 20235min read6435 views

How much does a 7 eleven franchise owner make? (2)

7-Eleven is a brand known to all. It is a multichain franchise of retail convenience stores. What makes 7-eleven popular is its round-the-clock, 24 hours running business model with easy and quick checkouts. It is one of the most popular American franchisees, with 36,000 stores in 15 countries worldwide. The financial success of 7-eleven franchises determines the success of 7-eleven companies as a whole.

“Success of 7-eleven Franchisee = success of the parent company”

Cost and Investment to open a 7-Eleven Franchise

The cost of owning the franchisee and other investments are largely dependent on the location; however, one can expect to invest $1 – $1.25 million to get the business rolling. A minimum net worth of $150,000 is a must, along with liquid working capital from $50,000 – $150,000.

Here is a table to enable an easy understanding of all the costs and fees required to own a 7-eleven franchise. However, there may be additional costs and fees apart from the financial requirements that aren’t mentioned here.

Fees/CostsFinancial Amount
Liquid Capital$50,000- $150,000
Net Worth$150,000
Franchise FeeUp to $1,000,000
Total Investment$37,200- $1,635,200

Average Sales per Year

As of 2019, 7-Eleven banks in roughly $18.66 billion dollars, with an average franchise making a sale of $1.4 million per store in a year.

What makes 7-Eleven a profit-making business?

Here are a few reasons why 7-eleven franchises outperform their peers:

1. Location

When it comes to retail convenience stores making a profit, it all comes down to their location. Being at a prime location allows good foot traffic flow with minimum to negligible competition. 7-eleven has successfully cracked the code of encouraging footfall as they are located on busy roads, public transportation centers, or around office buildings. All these locations allow consumers to go to 7-eleven for a quick break to grab a coffee on the go, quick, easy meal options that are ready to eat and grab utilities for the home to and fro when crossing the store. They are also located at facilities with parking spaces so that customers have the freedom to walk in and make a purchase. The kind of store is highly dependent on the area where you want to open the store.

2. Products

The kind of products that 7-Eleven offers is a big factor in why consumers support their business. However, 7-eleven considers having different brands for different locations as per customer preference, and for that, the franchise owners must do their diligence and take a call.

Ready-to-eat and microwavable food is an absolute must-have for any 7-eleven store, as they are entirely focused on providing convenience at the drop of a hat!However, the focus shouldn’t be on snacks like cookies, chips, or biscuits but instead on heated items like hot dogs, sandwiches, tacos, and churros.

3. Product Priority:

America and Americans love fast food, due to which 7-eleven ends up in competition with brands like Taco Bell, Subway, and McDonald’s. Hence, choosing the product range and brands as per location and preference is a wiser decision.

Advantages of 7-Eleven

How much does a 7 eleven franchise owner make? (3)
  • The biggest advantage of the 7-Eleven franchise is that can you build new stores and also convert existing convenience stores into 7-eleven franchisees. Here are a few store or utility options that can be converted into 7-elevens:
  • Convenience stores
  • Liquor stores
  • Gas Stations
  • Service Bay Stations
  • Another advantage attached to owning a 7-eleven franchise is that the parent company shares gross profit with the franchise owners. This serves as an added advantage since the overall profit ends up with the franchise owner.
  • 7-Eleven also offers great incentives for potential owners who may want to start a new franchise. It is amongst the very few big brands that provide financial assistance, resulting in up to 65% assistance on the initial franchise fee for the budding entrepreneurs.
  • 7-Eleven covers the costs and expenses for the building of the franchise store, equipment, utilities, and the taxes from renting the unit. This leaves room for the franchise owners to focus their attention on training and store operations.
  • 7-Eleven provides umpteen amounts of business management support and resources, like payroll systems and assistance, marketing, bookkeeping, in-store help, and other services that owners might need to run a modern convenience store.
  • 7-eleven is the most significant player with the maximum market share of any convenience store. With its huge brand recognition, the company’s dominance is on the rise, with expected annual sales to be more than $5 billion by 2030.

Disadvantages associated with 7-Eleven

Every franchise comes with its own set of challenges, and so is the case with 7-eleven. Here are a few of them:

  • 7-Eleven must be operational 24 hours, all days of the week. While this is one of the things that make 7-eleven popular, at the same time, it is taxing for the franchise owners and the employees. It becomes necessary for franchise owners and employees to work till late at night and early in the morning.
  • Given the current employment situation and environment, it is difficult to find employees willing to work in regular hours, let alone odd hours. Also, with odd working hours comes uncertainty and risk of dangerous activities, such as robbery, theft, or inappropriate drunk and destructive behavior.
  • 7-Eleven has more of an employer-employee relationship instead of the usual franchisor and franchisee relationship since the owners have less over the management decisions. Since 7-Eleven pays for the utilities, supplies, and other necessities, the franchise owners do not have the freedom of choice over the selection of products.

How Much Money can you make owning a 7-eleven Franchise?

The 7-Eleven Store Agreement provides a guaranteed yearly gross income of $339,000 for Non-Fuel stores and $365,300 for Fuel stores. However, if a particular franchise is not making the given amount, 7-Eleven adjusts the monthly charge to cover this minimum gross income. In terms of profit, the franchise owners can draw $50,000 – $75,000 on an average for their salary.

To Sum-up!

7-eleven is determined to grow and allow its franchise owners to grow along. 7-eleven is not just any brand; it is America’s leading convenience retail store and top-rated amongst the people for their untimely needs.

Hungry at 2 am? No Worries! Run to your nearest 7-eleven and grab a bite!

Do read if franchises are a good investment.

How much does a 7 eleven franchise owner make? (2024)

FAQs

How much does a 7 eleven franchise owner make? ›

Get feedback on your pay or offer

How much money do 7-Eleven franchise owners make? ›

On average the 7-Eleven franchise profit is about $1-1.9 million a year. As a 7-Eleven franchise owner you get about 48% of annual profit margin from total sales. That's $339,000 for non-fuel stores and $365,300 for fuel stores.

What is the average profit of a franchise owner? ›

The average annual income for a franchise owner with a business open for 2-10 years is $130,000, according to a survey of 35,000 franchisees across 375 leading brands conducted by Franchise Business Review. The average annual income for a franchisee with a business open for more than 10 years is $177,240.

How much does a franchise pay to the owner? ›

Most franchise owners don't receive a salary. Instead, a franchise owner's earnings come from the revenue and profits after paying overhead costs. Those costs typically include equipment and fees, inventory, supplies, staffing, benefits, utilities, rent, taxes, royalty fees, and advertising fees.

Why is 7-Eleven a good franchise to own? ›

Most franchise systems require royalty payments based on a percentage of base sales. With the 7‑Eleven system, we share gross profits with our franchise owners, which is sales receipts less the cost of the merchandise sold. Under this system, 7‑Eleven's loyalty is tied to profitable sales rather than just sales.

What is the highest paying franchise to own? ›

Franchise models that offer the highest return on investment are those that have a proven track record of success, a strong brand name, and a loyal customer base. According to Franchise Direct, some of the most profitable franchises models include McDonald's, 7-Eleven, and Dunkin' Donuts.

Do franchise owners take a salary? ›

How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity. The latter is usually only an option for limited liability corporations (LLC), S corporations, sole proprietorships and partnerships.

How much do Chick-fil-A franchise owners make? ›

Chick Fil A Franchise Owner Salary
Annual SalaryMonthly Pay
Top Earners$242,000$20,166
75th Percentile$125,000$10,416
Average$86,197$7,183
25th Percentile$26,500$2,208

Can a franchise make you a millionaire? ›

Becoming a millionaire with a franchise requires more than just a good brand. It implies properly growing into a multi-unit organization, which, by the way, is possible for anyone who wants to, as long as they get the right knowledge.

How rich are franchise owners? ›

According to Franchise Business Review, the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners earn more than $250,000 annually, and 51% earn less than $50,000.

Can you make a living owning a franchise? ›

According to a survey by Franchise Business Review, the average annual income of franchise owners is about $80,000. But there are many factors that affect franchise income, such as neighborhood demographics and traffic.

How much does a franchise owner make at McDonald's? ›

On average, a McDonald's franchise makes $3,505,000 in sales per year (+5% s. 2021). This amount is the median sales of 11,746 franchised restaurants operating in 2022.

Is being a franchise owner worth it? ›

Owning a franchise can be a rewarding venture, offering a balance between entrepreneurial independence and the support of an established brand. While there are challenges, the benefits, especially for those new to business ownership, can be significant.

How much do 7 11 owners make a year? ›

The estimated total pay range for a Franchise Owner at 7-Eleven is $88K–$164K per year, which includes base salary and additional pay. The average Franchise Owner base salary at 7-Eleven is $100K per year.

How much money do you need to open a 7-Eleven? ›

What Does a 7-Eleven Franchise Cost? To buy a franchise with 7-Eleven, you'll need to have at least liquid capital of $50,000- $150,000 and a minimum net worth of $150,000. Franchisees can expect to make a total investment of $37,200 - $1,635,200.

What is the 7-Eleven franchise ranked? ›

Largest Brands in Franchising | Franchise Times

In 2023, 7-Eleven was ranked #2 for the third year in a row in the Franchise Times Top 400 Largest Brands in Franchising annual list. The list ranks the largest franchise systems in the U.S. by global systemwide sales, based on the previous year's performance.

How much money can you make owning a convenience store? ›

While ZipRecruiter is seeing annual salaries as high as $60,500 and as low as $22,000, the majority of Convenience Store Owner salaries currently range between $36,500 (25th percentile) to $51,500 (75th percentile) with top earners (90th percentile) making $57,000 annually across the United States.

Who owns the majority of 7-Eleven? ›

7-Eleven, Inc. is an American convenience store chain, headquartered in Irving, Texas and owned by Japanese company Seven & I Holdings through Seven-Eleven Japan Co., Ltd. The chain was founded in 1927 as an ice house storefront in Dallas. It was named Tote'm Stores between 1928 and 1946.

What is the net worth of a franchise owner? ›

Franchise net worth refers to the total value of assets minus liabilities that a franchisee must have to meet the financial eligibility criteria set by the franchisor. We establish net worth requirements to ensure prospective franchisees have the financial capability to invest and manage a franchise successfully.

Who is the largest 7 11 franchisee? ›

Alon operates more than 300 7-Eleven stores, 11 asphalt terminals and three refineries, including one in Big Spring. Its facilities are mainly in the west, southwest and south central parts of the U.S.

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