I was just wondering the franchise business for 7-11 is worth doing or not? Here are some details I got from 7-11 website.

THE SCHEME IS AS FOLLOWS:
1.TERM
The Franchise Programme is for tenure of 10 years. (With an option to renew for another 10 years)

INTIAL FRANCHISE FEE, LICENSE FEE & SECURITY DEPOSIT
Franchising Fee -RM 100,000 (Non Refundable)
Stock Purchases – RM 100,000 (approximately)
Security Deposit – RM 50,000 (Refundable)

PROFIT SHARING RATIO
7-Eleven and Franchisee shares gross profit on about 50:50.

INCENTIVES
A 2% incentive from monthly sales turnover will be given to the franchisee.

STORE OPERATING EXPENSES

From the share of gross profit, 7-Eleven will be responsible for:
• Auditor cost
• Store rental
• Depreciation
• Store Insurance & license
• Electricity Charges

From the share of gross profit, Franchisee will be responsible for
• Store Staff cost
• Cash and inventory shortages
• Water & telephone charges
• Store Maintenance
• Store supplies (straws, plastic bags, cups, etc.)
• Store miscellaneous expenses (stationery for staffs, travel expenses, etc.)
• Royalties - RM1,000 (only applicable on the 6th year onwards)


Do we get to choose our location? Can we pick existing stores? Is there any analysis for typical business revenue for a 7-11 store in KL ?

This post has been edited by darkearth: Apr 8 2010, 06:45 PM

to your questions above. Yes, Yes, Yes.

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Added on April 8, 2010, 10:42 amAnyway, just call up the HQ line. they will be able to furnish you with more information.

Do know that good store selection are running out.
Last i heard, they have over 100+ confirmed franchisee with another 100 from Pernama retiree taking over the stores.
http://www.pernama.com/ln6_events.html#top

This post has been edited by king_majesty: Apr 8 2010, 10:42 AM

you can only pick existing store.
no, you cannot pick any store, only the stores that 7-11 willing to let go as franchise.

what if they release store that are not making money .
there is no store that is not making money, just making less but never losing money

this is a stupid scheme... yes, u get to choose which store you wan.. my fren said they already do an analysis on each store, Berjaya will hold the top 10 profitable store, like all around Bukit Bintang... i think Cosway also doing something like that right...

why is it a stupid scheme?

Janick1437: Its either the scheme is stupid or the company is stupid to allow you to take a huge profit cut from their top 10 earning stores.

nicely said

What kinda of average monthly revenues and profits are we talking about here?

There is this KK store like 7-11 opening up everywhere. Anybody knows if they are profitable?

With that kind of money investment and a 50-50 profit sharing, won't it be better to open you own kedai runcit in a housing estate or something?

Unless theres a big discount on distributor price or rental fees, then in long run it might be good. I've seen 7-11 opening in Lumut together with whole rolls of Kedai Runcit, many also 24hours. But 7-11 looks the cleanese but is also the most expensive, less choices.

You mean "Orange" ?

*purely coming from a academic angle*

Don't forget, 50-50 sharing will cover your misc expenses. Maintenance? rental? .
There are alot of items you will not be able to source cheap as you do not have the purchasing power or economics or scale.
other things you need to consider is buying into the brand name, training(shortening learning curve)

Too many choices might not be a good thing either. 20/80 rules states that 80% of your profit comes from 20% of your items.
as long as you have your core fast moving products.

Generally 7-11's business model is trending towards Differentiation rather than Cost Leadership or Market Seg. so it is normal for the goods to be expensive. Only hyper market can compete in CL.
example of why 7-11 is practicing Diff. (Slurpee, Coffee, Fresh Food, ATM/Reload/Fax Services etc)

There are many 7-11 Stores that are loosing money. As a unit, their books show negative cash flow in operating income.

Last year the standard practice is to franchise the top 50 profitable stores as a marketing scheme to attract investor. If you have missed this opportunity then don't bother getting in.

Dear all,

Few questions here:

1) How many staff is needed to run this 7 eleven and how much is their salary per month? I heard that some of the staff asked to do overtime as well. According to my research, for the 24 hours we need 5 staff. 1 morning, 2 evening, and 2 night.


2) How much is the estimated profit for every month? Since now AMBANK is offering to loan max RM175k for a max tenure of 5 years @ 7.3%, i expecting that we need a gross profit of RM10K after deducted the 50:50 profit sharing with 7-e.

This RM10K will used for:
i) Staff salary
ii) Maintenance except (IT & Aircond)
iii) Water and phone bill
iv) Staff travel, stationery expenses
v) Other costs like straws, cups, etc

Is it possible for us to get net profit of RM3K?


3) Regarding incentive 1% of sales royalty, from 1-5 years will paid by 7-e. But start from 6-10 years, it will paid by us. Since we finished paid our loan starts from year 6, we can earn more money but due to this incentive which can consider as quite high, is it worthy?

For example:
Let say sales of the month = RM200K
1% of RM200K = RM2k

If our gross profit still maintain as RM10K, then our net profit again will remain the same.


I hope experts and those who running the business can give suggestions on this.

Appreciate your reply.

malaysia's 7-11 suck big time, just compare with SIN and THAI !
berjaya will only let you have their biz if it is not profitable . . .

i prefer KKmart anytime ...

if you are retiree, then ok, if you are fighter, i suggest not.

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Added on February 1, 2011, 6:59 amjust ask the staff of the store that u intend to take over, you need 10 staff minimum for a 24 hours store my friend.


This post has been edited by thechallenger: Feb 1 2011, 06:59 AM

saw their advertise front ddor 7-11.
salary for their staff is 800pm.. few months back.. not sure now

bump !!!

After investing 250K you get 3K??? Why take so much risk? Buy gold or property and sell after 5 years and you will have better profits.

But only investing by getting loan..

Just rm75k, every month Rm3k..

Property is a very good investment, but now LTV 70%. For us to get loan 90%, we need to show our active income which is preferred by financier. Since working don't have many free time and therefore i prefer to run a business which is proven working and able to earn at least rm3k per month for me.

Does anyone know how much is the gross profit for 7-e before or after 50:50 profit sharing with 7-e?

Thanks

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Added on February 4, 2011, 4:03 pmbump bump !!!

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Added on February 6, 2011, 1:25 pmbump bump !!!

This post has been edited by logezzz: Feb 6 2011, 01:25 PM

Orange is own by the guy who runs RM 2 store.

One of my broker friends claim he finds location for Orange to rent the place. Some rental are just ridiculous for the convenient shop to sustain.

In my mind:
1. The owner is trying to brand his convenient store, which in the ends if he really do sell the business, it might worth something.

2. Or just purely run the business for the sake of business, as he has too much money.

I work in the modern trade and lower retail trade industry.. with about RM150k.. in my opinion, you could open a very comprehensive convenient mart with you own branding.. On the 80/20 rule, I can say it is true.. 20% of your products would bring in the bulk of your income.. the remaining ones are to complement your core selling products..

In general, many business strategies could be used in a grocery shop/convenient mart to build up repeated customers; depending on the person's experience and business acumen..

Can u give some examples?

Why want to take a franchise that allowed two shop open at the same area within 2 or 3 minutes walk....

for pernama, I think it may be a special deal. maybe at a reduced francise fee.

Grocery business is about serving the needs of the local community.
Observe the residents profile in the area and we could strategize products pricing accordingly.
Eg. perhaps in a new township, you notice majority of the residents are married couple with a young child or baby. As a business owner, we could periodically hold promotions for baby products like diapers, milk powder.. etc to draw the customers. While they are there, we hope they would buy other things as well.

A real life example would be me.. I do my grocery shoppings at Sri Petaling. There are many supermarkets I can go but I always tend to go to Carrefour simply because I like Pokka Green Tea 1L and they sell the cheapest at $1.90 (normal price) compared to $2.80 at other places.

I do know certain marts selling a loaf of bread at RM2.00 instead of the official price to attract daily customers. Whether or not the strategy is working; they would know.

But then again, a franchised concept like 7-Eleven could have its pricing controlled.
Hence, flexibility in running the business is limited.

Read in the newspaper they do sometimes advertise on the availability of such franchise prgram. But currently frm what i see, the Tutti Frutti franchise is really hot. Many of colleagues have ventured into it. Not sure if its profitable though...

why don't u think the opposite way ?
two shop in same roll and they still make profit .....
Try visit HK and tw, check out their 7-11 store location, u be surprise ......

1 Berjaya Timesquare..inside has more then 5 7e

That's because all belongs to the franchise holder themself, Berjaya Group. All 4 in their own building and another one opposite also their own building Berjaya Sompo bldg.

tutti frutti - u need to have at least 500k before you start thinking about it.

In which area???


KL?

0833- LG-60A Lower Ground Floor, Berjaya Times
Square, No 1 Jalan Imbi, 55100 Kuala Lumpur





0333 Times Square, KLWP - KL - Jalan Imbi -
Berjaya Times Square
Lot G-18A (GF), Ground Floor Berjaya Times Squ





BTS 1st Floor,
KL
WP - KL - Jalan Imbi -
Berjaya Times Square -
Level 1
Lot 01-21, First Floor, Berjaya Times Square, No
1 Jalan Imbi, 55100 Kuala Lumpur




BTS 3Floor
Cinema,KL
WP - KL - Jalan Imbi -
Berjaya Times Square -
Level 3
PA-03-108A, Level 3, Berjaya Times Square, No
1 Jalan Imbi, 55100 Kuala Lumpur



0888 BTS 5 Flr Theme Park, KL WP - KL - Berjaya Times
Square - Level 5
Lot 05-103, Level 5, Berjaya Times Sq


now is 5..

why not every floor open 1?????

7-Eleven Malaysia
3月4日上午 10:29 ·
Convenience redefined - we've got a new range of fresh food and beverage offerings, seatings and free WiFi*, reloads and bill payment services*, gift cards, and many more!
Here at 7-Eleven Malaysia, we're ‪#‎AlwaysThereForYou‬.
‪#‎7ElevenMY‬
*Currently at selected outlets only.

any franchisee holder can share their experience here?

YOU want open?????

c how the opportunity
was told 7-11 franchise freeze at this moment, any idea?

KK SUPER MART is now taking over most of the customer from 7-11

Considering to open a chain of convenient shop like happy mart in penang.. w aim of pitential placement fee.. is this feasible.?

If setting up the business only earns a profit of RM3k per month, I am not going to stand up for that..

Its not worth the risk and reward..

The risk of operating such business is too high as compared to a business which involved with lower operating costs..

Not a bad scheme for newbies who want to start up a retail business. The risk is relatively low with the care of store rental and other heavy expenditures.

You may need to focus on your freehand of selling some items, for example, Nasi Lemak from your favourite supplier.

It is expecting the corporate wants you to sell 100% with their supplying items. If you have freehand, not fully, some, will be an added advantage. This is how you can grow your store differently.

Get the experience from the programme, and then, build your own brand store when you already know how to fly.

Never, and never, underestimate the impact of store rental, retail is a low profit margin business. You need to sell many thousands breads for the rental.

This post has been edited by kpfun: Aug 19 2016, 10:59 AM

mostly naik kerete if the 7/11 not in SHOPPING MALL.

7-11 average profits down by 30 to 50% due to competition especially Speed99 stores. Never invest in Vincent Tan.!!

Hi, can roughly estimate how much to open a very comprehensive convenient mart now (year 2016).
Any advise for me as I'm really a green horn in this industry but I willing to learn.

Thanks

vincent tan kasi open license open 7/11 tepi kedai 7/11 mu.

best partnership ever.

I'm curious what is the minimum floor space needed for a 7-11?

things in 7-11 Msia are expensive, possibly the most expensive in the whole wide world. and the food in there are like crap. you are better off going home and cook them yourself, even if you didn;t know how to cook and doing it for the first time, they will still taste better. Vincent Tan ought to be ashamed of himself.

This post has been edited by motodiary: Aug 13 2017, 10:07 AM

its 7-11 dude, you're talking as if 7-11 is a restaurant. its a 24 hour kedai runcit bro.

https://www.7eleven.com.my/store-locator/


Now I found that many 7-11 just open from 6 am - 11.59 pm only

18 hours only

Taman Setia Tropika,JB

No 30 (GF), Jalan Setia Tropika 1/24,
Taman Setia Tropika,
Kempas
81200

06:00 AM - 12:00 AM
Mon, Tues, Wed, Thur, Fri, Sat, Sun




Taman Setia Tropika, Johor.

No 42, ( Ground Floor), Jalan Setia Tropika 1/7,
Taman Setia Tropika
Johor Bahru, Johor,
81200


06:00 AM - 12:00 AM
Mon, Tues, Wed, Thur, Fri, Sat, Sun


Tasek Eleven, JB

No 20 (GF),
Jalan Tun Abdul Razak Susur 6,
Taman Suria Muafakat
80200

06:00 AM - 12:00 AM
Mon, Tues, Wed, Thur, Fri, Sat, Sun



Jalan Kempas Indah, Taman Kempas, JB

No 82 (GF), Jalan Kempas Indah 1/1,
Taman Kempas
81300 Johor Bahru

06:00 AM - 12:00 AM
Mon, Tues, Wed, Thur, Fri, Sat, Sun


They close from 12 am until 05:59 am




Kebun Teh, JB

No 42 (GF) Jalan Kebun Teh 1,
Pusat Perdagangan Kebun Teh
80250

06:00 AM - 12:00 AM

Mon, Tues, Wed, Thur, Fri, Sat, Sun

This post has been edited by plouffle0789: Mar 25 2025, 11:19 PM

Only KKMart the true 24x7 convenience store

What happened to 7-11?

Gotten boycott or what...

How come no more 24hours operation....

Maybe they go back to their roots of 7-11 ?

So 7-11 originally not 24hours operation?? 🤔🧐

COVID time aldy stop 24/7 then they stick to 930pm till now ..
No one boycott 711 la

Hence their name?

While 7-Eleven is known for its extended hours, it wasn't always a 24-hour operation. The name "7-Eleven" itself, introduced in 1946, reflected the stores' extended hours of operation, from 7 a.m. to 11 p.m., seven days a week.

Ooh thanks..

Didn't know it's no more 24 hours..

Too bad...

This post has been edited by nexona88: Mar 30 2025, 09:11 AM

No wonder...

Was thinking it's really 24 hours from starting...

Less 1 outlet to go find midnight or early morning stuff 😁

There's always the local alternative of KK Supermart