Dark Secrets Owning a 7-Eleven Franchise

[@Jakeking20]

Worked night shift for 7-Eleven, this can happen at ANY location sadly. I nearly got my head blown off while mopping the floor. (Random drive by)

[@kenrose2523]

Unless you're really in a messed up financial situation, I would have just quit on the spot. It is not worth losing my life for any employer(especially those that pay barely below minimum wage)

[@coreyanderson7424]

I work at 711 now, and a part of me worries.

[@anderson22555]

I’m so glad That your channel provides very informative advice thanks.

[@FranchiseCityOnline]

Thanks for watching!

[@bluejedi723]

There are 5 7-11s in my area. The one dude that owns them gave up and locked up the store tight between 8pm and 7am. He's trying to sell, no luck.

[@FranchiseCityOnline]

Be interesting to see if he gets disciplined for closing!

[@E4439Qv5]

@@FranchiseCityOnline almost certainly

[@realdealastrology9]

As a prospective franchise buyer shopping around, thanks for the heads up! I definitely would love to franchise a convenience store (my top industry to look into), but 7-11 definitely won't be it. Taking at least half of gross profits is absolutely abominable.

[@FranchiseCityOnline]

Thanks for watching!

[@leedex]

I was living in Thailand a couple of years. Every time there was a franchise in an area running great. 7 eleven opened their own 7 eleven, with a big parking almost next to the franchise 😬

[@bluejedi723]

in my area, if you need fast $$$, get a job at 711. Turnover rate is FRICKING HIGH as hell. Like new faces every 3 or 4 days.

[@jayt7397]

I work at a 7/11. Corporate gives our store no chance to succeed. We aren't staffed or given the hours to keep the coolers stocked.

[@efeend1]

making researches, looking to start for 7/11 franchise for some time.. im not in 7/11 as yet and really disappointed till now. Your video, alongside similer ones, is very helpfull.. Thanks

[@FranchiseCityOnline]

Thank you for watching!

[@ctobin22]

I am a 711 franchise owner for the past 14 years and own multiple stores. I Agree with everything you say here. But why do people keep buying these stores? Why? Also how is 711 even considered a franchise with the micro managing business model that they have? We literally dont even control the thermostats in the store. In fact we don’t even have thermostats in the store. 711 from there corporate offices in dallas controls it. I don’t even pay my own bills in the store. So I don’t know what and how much things cost. Also 711 charges full franchise fees everytime the store sells. Not transfer fees but full franchise fees. I do make money though. I guess that’s why I am in this business

[@FranchiseCityOnline]

Thank you for the comment!

[@just_randomvids]

Can I ask how much you make and it's okay if you don't want to disclose the correct amount

[@RoshanAryal84]

I am interested to own may i need help ?

[@ctobin22]

@@RoshanAryal84 sure anytime

[@zonein9169]

How did you get started ?

[@skang872]

The most depressing part is that they take ~ 50% gross margin on lottery. If a store does $5000 / day sales of lottery, it means that operator needs one employee on the lottery machine. Now 6% gross margin in NY will give the operator $300 / day. Now that extra person on lottery machine - lets say 18 hours ( instead of 24 hours) is 18 * 15(min wage) is 270. Looks like profitable- 300-270= 30/ day. But guess what -NO-, because 7-11 takes 50% of gross margin on lottery too ( where gross margin is only 6%). Basically operator put a guy on lottery machine to be in negative gross profit. Disgusting.

[@FranchiseCityOnline]

Wow - very helpful information thanks for sharing.

[@PearlTheSpinster]

We got a new 711 here about 2 years ago. It was great, great staff, great deals, you name it. ut I noticed changes there a few months ago and over heard the cashiers staying how the owner opened a new store and wanted them to work there. I think some other "drama" was going down too. But the store as a whole went to $#!T!!! They didn't even have hot dogs. Coffee lids were dirty, I mean just gross. There were not deals either, I had to pay full price for coffee. the horror. hahahaha. I think in this case it was a bad business move having the employees move to another store, because a lot of them quit. I don't know why the owner wanted another store but they should have just kept this one the way it was because now it sucks and I don't go there anymore.

[@skliros9235]

Lot of these people looking to buy franchises, need to listen to you for a reality check.

[@vickipedia3253]

I just did!! Thank goodness

[@japnitsingh5521]

I own multiple 7-eleven locations in NYC. Company has reinvested in automated coffee systems and other qsrs are coming in near future. The only issue is variable profit. They used to have 50/50 profit split but its variable.

[@efeend1]

Almost all 7/11 stores in all 5 boros of NYC for sale back a couple of years ago, before Covid... Seems less for sale now.. Some already shuts off altogether, i wonder if its worth getting in ?

[@hoffwell]

Rising Labour costs. Perhaps a lot of these businesses have been effectively bust for years, were it not for the previously available cheap labour.

[@aldenchan8272]

This very useful advice thanks

[@FranchiseCityOnline]

Thanks for watching!

[@Inkie.Apparition]

@6:53 LMMMFFFAO!!!! 🤣🙃😂🤣🙃😂

[@tucuruicomercioerepresenta2308]

2 Million dollars reveneu and 25k profit??????? Are you nuts??? I have a store in a third world country that dont sell half of that and i think i earn more than this. This is insane! Why they dont break the contract and use their own name?

[@hassanbazzi3545]

You think that would be the solution but breaking the contact you would lose everything including the property. 7-eleven are protected by lawyers and too big to mess with. It is so sad

[@edwinbetancourt3958]

@@hassanbazzi3545 most franchisees aren't the property owner dude...neither is 7-11. They pay a lease. I know because I'm a franchisee.

[@superdoobo]

I would worry about my employees working the overnights not just me.

[@FranchiseCityOnline]

Me too, sadly that's not how everyone thinks :-)

[@hassanbazzi3545]

I had my business doing very well when the approached me many times begging to switch my store to 7-eleven. He literally told me that I have cleaner , better customer service and full of inventory. But, he also said an important clue that customers like the brand more than anything. They were changing 11% back then +++. They will come inside and take everything out and even the floors and bring their own equipments and merchandise and advised me to sell everything for half price. They even bring their own ATM where they keep all the fees from that. I heard they open one store every 2 hours around the clock and I believe a Japanese company owns them. Thank you for sharing the important information

[@bestprice1776]

Buy Bitcoin, you will make more

[@chaz000006]

@@bestprice1776 Not lately, and with more countries looking at banning it, not in the foreseeable future.

[@FranchiseCityOnline]

Great info! Thank you. And yes, Japanese company Seven & i Holdings bought 7-Eleven in 2005. Many franchise owners claim it was at that time that things started going downhill.

[@bestprice1776]

@@chaz000006 here is a fact... The Bitcoin network currently transfers more total dollars than Visa. You obviously don't realize how big Bitcoin already is and growing larger every day.

[@bluejedi723]

@@FranchiseCityOnline at the 711 1/4 mile from my house, they are selling a lot of Japanese branded items. Example- the 10 oz of foldgers coffee you brew at home in your coffee pot they have in the sad little "grocery" section- has Spanish, English AND japanese directions

[@russellseilhamer4552]

Where I live in Altoona PA, we have Sheetz. They’re all corporately owned, they’re in 7 states and coming to Michigan in 2023. Their food quality is excellent, overall service is excellent, they’re famous for their clean bathrooms and how well they treat their employees. If they ever decide to franchise out stores, they should buy into Sheetz

[@MulberryPress-l7m]

Modern serfs. Franchisee's call themselves "owners," but they are slaves to the parent corporation. You are just a worker for the big corporation but think you are "in business for yourself."

[@IMB322]

Please give me your opinion concerning the Krystal burger franchise.

[@FranchiseCityOnline]

You can get (free) reviews and a lot more in 48 hrs if you are seeking a franchise! kzbin.info/www/bejne/fnXVd5idirKGkKs

[@EPK-RAP]

7 eleven in Austin Tx I 35 & William cannon just cut down 5 perfectly fine trees just so the homeless won’t get shade..🤷‍♂️ it’s 106 degrees today

[@bigg8251]

7-eleven just raised all stores fuel prices 15 cents higher than rest of the city today in San Antonio in an attempt too price gouge the market I am a store manager for a franchisee

[@FranchiseCityOnline]

Thanks for sharing!

[@michiganmotorsports]

And now that stealing $950 from a store is legal......

[@MulberryPress-l7m]

It seems 7-11 corporate calls all of the shots. Many people don't know that 7-11 corporate is a Japanese owned combine. It is not U.S.A. owned. Very occasionally, I got to 7-11's here, but prices are 20-40 percent higher than the grocery stores on many things. The only help to me is that they are opened overnight if I can't sleep and need to make a beer run. Very high priced.

[@Sourpusscandy]

Did you break the story about “broken” ice cream machines at mcdonalds? That’s a real screw job!

[@mr.culturefreedom2073]

7 Eleven's are big in Japan. It's like Tim Horton's in Canada.

[@FranchiseCityOnline]

true - much higher profits as well.

[@whyisblue923taken]

Convenience stores in general are big in Japan. Family Mart was huge before the expansion of 7 Eleven. They have the overworking culture and eating hot meals at the store thing going for them there.

[@YourTransmissionRepair]

Bob, I absolutely love your videos! I'm 68 and retired, but I thoroughly enjoy the videos nonetheless. I wish I would have had your advice during my working years. Keep doing what you're doing, and I'll do the same. Thank you!

[@FranchiseCityOnline]

Thank you for the kind words and all the best in 2023! 🙂

[@vickipedia3253]

Very valuable video

[@FranchiseCityOnline]

Thanks for watching!

[@coreyanderson7424]

I wonder how much 711 the corporation makes annually and I think that the store owner should keep 65 percent not 50 or less. Wow. They wouldn't make much money. Also, there needs to be way more advertising for deliveries and that's also doable. They need a whole new marketing strategy to make money.

[@edwinbetancourt3958]

I'm banking sales wise, over 100k a month. At the end of every month...I'm told the store makes no money🤷🤣 I receive zero compensation and on top of that 7-11 claims I owe them money. No wonder they're being sued all over the U.S. Check the pile of mounting lawsuits issued by unified franchisees in various states.

[@issathalgythalgy9415]

Ok so 711 does not control the retail prices inside the store, as a franchisee owner I have the rite to mark prices up down anyway I like

[@papachuck6007]

our 711 gas is always on par

[@Shizam21]

This is why I buy private gas stations. I own multiple Mobil and Shell gas stations but with a private grocery store and own the property. I am able to maximize profits and not have to work having employees for everything since they all close at 12 am.

[@FranchiseCityOnline]

Thank you for the comment!

[@CommandoMaster]

Wow 2mil gross, but you have to give 1mil to the franchise, and you only keep 1% (25k) per year after expenses. That's really low. I wonder what the initial investment you have to put in?

[@esingh7933]

That’s not how it works, it’s gross profit. But still it’s still not a lot, the owner isn’t treated like a owner. It’s more like your a manager for 7-Eleven. They literally got their own security cameras and do many other things that they would do on employees working for them. You basically don’t own it. The Japanese destroyed the franchise model

[@edwinbetancourt3958]

The initial investment depends on the location. It's not a cookie cutter deal for all locations. It depends on the sales volume and other factors.

[@DraiiRynell]

Yea the 7 eleven workers and owners are out of touch with the local area they're in.

[@rickymilo83]

Im a former Field Consultant and Zone merchandiser for 7-11. I won’t disagree with everything but I do disagree with the gas. Yes, 1.5 cent per gallon but franchisees also do not pay for any of the gas pump maintenance, fuel, credit card fees or structure maintenance, utilities.. etc . 7-11 corps pays all that. The FZ earns a commission cuz they literally do not occur any cost to operate the fuel station. lastly, FZs literally can earn over $12K a year in incentive, plus free products, national discounts and not to mention the use of a brand that’s existed over 90yrs. lastly, FZs 100% control pricing in their stores. They do not control fuel pricing because 7-11 owns the gas, the franchisees on the inventory. So, that’s just not true.

[@edwinbetancourt3958]

Franchisees do not "own" the inventory. Your shit company charges interest on the inventory. Among the many magical charges and magical financial numbers they give out every month.

[@biplav32]

i didn't think we needed anymore.

[@FranchiseCityOnline]

7-Eleven holds the lease!

[@kinggill3982]

I bought a 711, On 7/11... By 7:11pm I was out of business

[@heathweather5995]

Homeless people like to loiter in front of 7-11.

[@metaparcel]

Help'em out if you can.

[@nagarajgudalur2132]

Hi

[@polok890]

Wow, horrible

[@CandlestickTV]

lol what in the world

[@GarrettTheCarrott]

5th comment

[@bestprice1776]

Bitcoin is by far a better investment than a 7-11

[@chaz000006]

Not lately, and with more countries looking at banning it, not in the foreseeable future.

[@bestprice1776]

@@chaz000006 do some research... Bitcoin is the best asymmetrical asset to ever come along in our lifetime

[@bestprice1776]

@@chaz000006 JP Morgan chase said way back in 2017 Bitcoin was a scam, Ponzi, etc.... And all the time they were buying Bitcoin. Don't listen to what they say, watch what they do. They are not on your side.

[@chaz000006]

@@bestprice1776 Sure, they are out for your money, but if they don't convince you with verbiage, they'll get their government buddies to legislate it into illegality, so either way they win and you lose. Then they can tell you 'I told you so'.

[@bestprice1776]

@@chaz000006 multi billionaire Bill Miller has over 50% of his net worth in Bitcoin, Mr Wonderful from Shark tank has over 20% in crypto just to name a couple famous one....are you smarter than these people?