Aug 19 2016, 10:57 AM
QUOTE(darkearth @ Apr 8 2010, 10:29 AM)
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
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.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
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
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