Seven Eleven Franchise

[Korat88]

My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing. However, I have read some opinions from others on this site and other sites that don't always agree with this view. Since she will want me to fund the entry into such a business, I am not too sure now, and hence this post. Is this franchise business a 'not with a barge-pole' type or is there really some merit to it? Many thanks for any views, positive or negative.

[IMA_FARANG]

My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing. However, I have read some opinions from others on this site and other sites that don't always agree with this view. Since she will want me to fund the entry into such a business, I am not too sure now, and hence this post. Is this franchise business a 'not with a barge-pole' type or is there really some merit to it? Many thanks for any views, positive or negative.

I don't know about other areas, but I would think in Bangkok the 7-eleven business must be swamped, at least in the main tourist or business areas. I've seen some parts of Sukhumvit road that have 4 7-eleven stores within two blocks (on both sides of the road that is). I would think that locations like that must be overrun with 7-eleven stores. I don't see how they could make a profit like that.

I guess it all comes down to finding the right location.

[Chang_paarp]

7-11 like any business needs to run as a business. If properly run and in the correct location it can be a very successful and profitable business. The systems are proven, they have levels of support for the franchisees and the brand recocnition is very strong in Thailand. So properly run it should not be a major risk.

Now you need to ask;

Location? Do you have one in mind or will the CP rep help there?

Is the daughter a business person, or can she follow the training manual from CP?

Will the friend give a guiding hand or is she after the commission for selling a franchise? (If the friend is allowed to be a minor shareholder in the business this could be a big benefit.)

Can you afford the 3M or so baht that it will cost to set up?

Business plan?

Repayments?

Business experience?

Management experience?

Some of these are not comfortable questions to ask yourself about family. It can be easier if you pretend it is not for a family member, make that decision and then factor in the "family factor".

Good luck with the decision.

[tattoodrob]

i agree........gettin a bit overrun with them but there are up and coming areas everywhere and money can be made but i dont think its a fortune!!!!!! if you think she will take proper care of the business for you then could do ok....as franchises go this is not a bad one.just my opinion

[torrenova]

Isn't the 7/11 / Family Mart business model to take as many franchise fees as possible and then let battle commence, until either they all survive or the strangest and best managed (or deepest pockets) survive ?

Then you have the product placement fees which are horrendously high and I doubt the franchisee sees any of that.

It would be interesting to see how much they make from non retailing (fees etc.) and the actual retailing side of the business.

I think it is a hard way to make a living with significant risk because as soon as you are deemed successful, up springs another one or another variant to clip your wings.

[freitag1]

I'm just surprised that there is no protection. Like you can't open a 7/11 within 500 meters of another one. I also know a street with six 7/11s within 300 meters on both sites...

[funfun]

My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing. However, I have read some opinions from others on this site and other sites that don't always agree with this view. Since she will want me to fund the entry into such a business, I am not too sure now, and hence this post. Is this franchise business a 'not with a barge-pole' type or is there really some merit to it? Many thanks for any views, positive or negative.

''My Thai step-daughter has a good friend who used to manage a 7-eleven''

your step daughter hasnt any exp?

''She has told my 'daughter' that it is a good business idea and is worth pursuing''

so is being the PM of Thailand?

tell her if she works there for 2 years and makes ass manager or manageress, gets to know the job like the back of her hand, youll invest!

its always easy to spend someone else's money, at best shell do a good job if she does 2 years,

at worst she'll show that maybe she cant get out of bed 24/7 as needs arrise saving you more than 4 mill i rekon, its 1 mill for name alone!

good luck anyways

chris

[xyborg]

<br />My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing. However, I have read some opinions from others on this site and other sites that don't always agree with this view. Since she will want me to fund the entry into such a business, I am not too sure now, and hence this post. Is this franchise business a 'not with a barge-pole' type or is there really some merit to it? Many thanks for any views, positive or negative.<br />

<br /><br /><br />

If I were you I would open your own private store you can choose your stock not be dictated too and could call it 11-7 !! This way you can cash in quick on any market trends fads crazes etc etc

[keestha]

If I were you I would open your own private store you can choose your stock not be dictated too and could call it 11-7 !! This way you can cash in quick on any market trends fads crazes etc etc

Last year I was surprised to drive past a supermarket in Buriram City which was called "7", a very big neon 7 attached to the front. Sure it looked like a 7/11. Wondering how far you can go with this in the Thai legal system. Fact is that a number of years ago a brand of cigarettes called "Marble", red/white package like Marlboro, had to be taken out of circulation after a few weeks. Oh well, guess I am straying off topic, sorry for that.

Edited March 8, 2008 by keestha

[sweetchariot]

I'm just surprised that there is no protection. Like you can't open a 7/11 within 500 meters of another one. I also know a street with six 7/11s within 300 meters on both sites...

Allegedly CP watches any new franchises, and if successful will open their own (non-franchised) store a few metres down the road. This, I am told, is why you quite often see 2 in close proximity.

[Korat88]

7-11 like any business needs to run as a business. If properly run and in the correct location it can be a very successful and profitable business. The systems are proven, they have levels of support for the franchisees and the brand recocnition is very strong in Thailand. So properly run it should not be a major risk.

Now you need to ask;

Location? Do you have one in mind or will the CP rep help there?

Is the daughter a business person, or can she follow the training manual from CP?

Will the friend give a guiding hand or is she after the commission for selling a franchise? (If the friend is allowed to be a minor shareholder in the business this could be a big benefit.)

Can you afford the 3M or so baht that it will cost to set up?

Business plan?

Repayments?

Business experience?

Management experience?

Some of these are not comfortable questions to ask yourself about family. It can be easier if you pretend it is not for a family member, make that decision and then factor in the "family factor".

Good luck with the decision.

Thank you for the wishes.

I think that I am more into preserving my capital, as recommended on another thread I started (i.e. don't commit too much in the way of funds to Thailand, only what you can afford to lose), so I might well have to disappoint my step-daughter. You and others have raised some sensible points and although she is very clever, my daughter has little in the way of experience. She does help run/manage a very small "essentials" shop (shampoo, soap, toothpaste, washing-powder etc...) in her husband's family business (factory), but other than that she has no real qualifications experience. She is very bright though and together with her extreme confidence, I am sure she would actually be very good. But can I take such a risk? To be frank - NO!

Perhaps another type of business? Start small and work up. But what would work? As if you hadn't guessed the area we are talking about is Korat

[Chang_paarp]

Sit her down and explain the decision. Explain that she does not have experience in this industry and no track record to substitute for cash. Explain the idea of a business plan, what you would like to see before you invest any money, so it is a not at this time answer not a never in a million years answer. Things like some formal training, which her friend would have received in her time with 7 eleven to be able to manage people, money, suppliers and stock control.

Many of these skills will also be useful to the husband's family business too if there is a chance of succession, or in any venture she wants to pursue in the future. You may do well to invest in the education, rather than the business right now. Make the offer as part of the not right now answer.

[Khun Jean]

I'm just surprised that there is no protection. Like you can't open a 7/11 within 500 meters of another one. I also know a street with six 7/11s within 300 meters on both sites...

Allegedly CP watches any new franchises, and if successful will open their own (non-franchised) store a few metres down the road. This, I am told, is why you quite often see 2 in close proximity.

I don't know about that.

What i do know is that in a few places the shop across the street or on another block are owned by the same person.

Many people can't be bothered to cross the street or walk 10 meter further than necessary.

In the western world it would not work. We do everything by car. If we can't park we don't go.

In a place like Bangkok with its millions of people it is just a way to get those other 20.000 people on the other side of the street, or the 50.000 people on the left side that first went to another shop because it was closer.

Think asian, not western. But i must say i have difficulty with that too, and decided to not start a 7-11 shop, instead rented out the land. Less problems and worries.

[Khun Jean]

Sit her down and explain the decision. Explain that she does not have experience in this industry and no track record to substitute for cash. Explain the idea of a business plan, what you would like to see before you invest any money, so it is a not at this time answer not a never in a million years answer. Things like some formal training, which her friend would have received in her time with 7 eleven to be able to manage people, money, suppliers and stock control.

Many of these skills will also be useful to the husband's family business too if there is a chance of succession, or in any venture she wants to pursue in the future. You may do well to invest in the education, rather than the business right now. Make the offer as part of the not right now answer.

Sit her down and explain???. Like you have to explain yourself. Like a small child that did something wrong.

More easy is it to say "No". And if asked why. "I don't invest in something i don't own".

Simple and it will get you more respect in the long run.

Well that is what i would do.

[stevemiddie]

Sit her down and explain the decision. Explain that she does not have experience in this industry and no track record to substitute for cash. Explain the idea of a business plan, what you would like to see before you invest any money, so it is a not at this time answer not a never in a million years answer. Things like some formal training, which her friend would have received in her time with 7 eleven to be able to manage people, money, suppliers and stock control.

Many of these skills will also be useful to the husband's family business too if there is a chance of succession, or in any venture she wants to pursue in the future. You may do well to invest in the education, rather than the business right now. Make the offer as part of the not right now answer.

Sit her down and explain???. Like you have to explain yourself. Like a small child that did something wrong.

More easy is it to say "No". And if asked why. "I don't invest in something i don't own".Simple and it will get you more respect in the long run.

Well that is what i would do.

I doubt that somehow. I think it would be perfectly reasonable to EXPLAIN the decision. We are talking about family here I believe?

And LOTS of people in business invest in something they DO NOT OWN. And if you don,t invest in something you don,t own............why are you building a house in Thailand? You OWN the land?

Edited March 10, 2008 by stevemiddie

[torrenova]

As you can't afford to lose it, sit her down and tell her that you don't have the money to invest, period. If you are really keep to help but know nothing about business yourself then just don't. Letting them down before you start is easier than letting them down when it has run out of money and they have no more to put it.

If you are still keen to help, let them come to you with some ideas. You should be able to weed out the stupid and crazy ones and if you ever (unlikely) find one which has some merits, then offer them a loan of say Bt50,000 maximum to start it and stipulate that there will be no more and if they don't have their share of the cash then it is a non starter. Make sure your wife knows this and make it a take it or leave it offer. When it fails, you are somewhat in the clear.

[Khun Jean]

Sit her down and explain the decision. Explain that she does not have experience in this industry and no track record to substitute for cash. Explain the idea of a business plan, what you would like to see before you invest any money, so it is a not at this time answer not a never in a million years answer. Things like some formal training, which her friend would have received in her time with 7 eleven to be able to manage people, money, suppliers and stock control.

Many of these skills will also be useful to the husband's family business too if there is a chance of succession, or in any venture she wants to pursue in the future. You may do well to invest in the education, rather than the business right now. Make the offer as part of the not right now answer.

Sit her down and explain???. Like you have to explain yourself. Like a small child that did something wrong.

More easy is it to say "No". And if asked why. "I don't invest in something i don't own".Simple and it will get you more respect in the long run.

Well that is what i would do.

I doubt that somehow. I think it would be perfectly reasonable to EXPLAIN the decision. We are talking about family here I believe?

And LOTS of people in business invest in something they DO NOT OWN. And if you don,t invest in something you don,t own............why are you building a house in Thailand? You OWN the land?

As it was put in the mail it sounded like making excuses for not investing. 3 Million baht is not peanuts and for that you should own at least the 49% that is possible under Thai law.

In Thailand it is better to own as much as possible. Otherwise you have no recourse whatsoever. Unless you just want to give the money away. But then we should not call it investment but a gift.

If you read a few of my posts it should be clear that i know very well what my rights or should i say what are not my rights. I intend to build a house on land that my wife owns. I am not the only one who spents money on this. My wife works for her part. And if everything goes wrong i still follow the golden rule about investment in Thailand.

A larger and more expensive piece of land will be bought soon. But only if my conditions are satisfied.

To get back on the topic at hand. I think it is unwise to invest in a 7-11, even if you have the best manager in the world. I think Lotus express which is not a franchise btw will kill them all.

Of course like anything written by me, it is my personal opinion.

[poly36]

Hi everyone,

I'm married to a Thai and strongly considering doing a 7 eleven franchise. We are interested in the type C which is 2.65 million baht. We went to the meeting this week and all the info was great and positive. However, they don't tell you how much you could possibly make. They don't mention the mark up or margins on their stock. How can I make an educated decision on whether it's a good idea. Does anyone run or know of anyone who runs a 7 eleven? How much do they make?

Edited February 1, 2009 by poly36

[Khun Jean]

For me the deal-killer was no area protection. 50 meters away they can open another.

[BygonKeaw]

why so many 711s?

because they make money.

Simple

[Khun Jean]

They make money mostly from the franchise, not that much profit for the 'owner', something 7/11 does not care about.

A 7/11 makes good money UNTIL the next one is opened. Then both shops will make more turnover but have to be satisfied with a lot less profit each.

I considered one before. Having some land on a good spot. After calculations it was easier, about the same profit if we just leased out the land.

No employees, no accounting, etc.

[007]

My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing.

Is or was? I'd think, that it is as lucrative to open such a franchise in Bangkok in 2009, as it is to open a Starbucks franchise in downtown U.S.A.

[think_too_mut]

My Thai step-daughter has a good friend who used to manage a 7-eleven and now works in the regional 7-eleven headquarters. She has told my 'daughter' that it is a good business idea and is worth pursuing. However, I have read some opinions from others on this site and other sites that don't always agree with this view. Since she will want me to fund the entry into such a business, I am not too sure now, and hence this post. Is this franchise business a 'not with a barge-pole' type or is there really some merit to it? Many thanks for any views, positive or negative.

This question comes every 3-4 months and usually degenerates into how can 7-11s on all 4 corners of an intersection make money.

From previous years, from memory, the situation is something like this:

- You can not do that. The owner must be a Thai with at least HSC and retail experience. CM will have to assess the applicant.

- CM decides where the store will be. You can not just tell them where you want it. You might, but they will have to analyze and approve it.

- CM decides who works in there. You can't just pack the whole family with no skills. Each employee must have at least HSC.

- Someone who had 7-11 or something said the money is about 40K baht per month (for the owner), same as English teacher but for much longer and endless hours.

- Franchise fee was 12% of sales.

[poly36]

40,000k a month. I find that hard to belive. Type C for a Big size 7 eleven costs 2.85 million baht. If you are making only 40k a month it takes more than 5 years just to get your money back. Can there be that many people who own 7 elevens just getting it wrong. I would like to think its more of a worthwhile investment than that. Maybe 40k is for TYPE B which costs 1.5 million and at the end of the 6 years you get 500,000 back. When people give advice can they clarify if it is for type B or C. I know all the details because I just went to the meeting this week. The only missing piece of the puzzle is the money side. Can anybody out there shed some light. MY wife is a Uni graduate, with 6 years business experience, I have cash to get started.....everything is in place. I just need to know if it's a worthwhile investment???

[Khun Jean]

Missing information is easily filled. Talk to some owners of a 7/11. Some B/C type make 100.000 baht or more a month and some C type make a pittance.

Don't compare with western salaries. A Thai is willing to work very very hard for 20.000 baht a month. 40.000 baht is double of that.

My brother in law has a mini mart and did the whole 7/11 research before as did i.

The best locations are taken, look for new projects and try to get a good location. In that case you will find that the best are already planned for family, friends and/or business partners.

[poly36]

Does anyone have an idea on the margins on 7 eleven stock. For eg. how much does it cost to the owner the buy a bottle of pepsi from 7 eleven. If you sell it in store for 15 baht.......am I possibly buying it for 10 baht?? Is it roughly the same percentage all across the board?

[poly36]

Hey Khun Jean,

Seems like you've gone through what I'm going through now (mentally). You say what put you off is no exclusivity or protection for more than 50 metres. At the meeting I just went to they said if they open a 7 eleven next to your shop, they give you the money it costs you. So if you were making 40k and as a result of a new one opening you make 20k, 7 eleven will give you the 20k.

[Khun Jean]

Never heard about that. The story i heard is they will make you an offer for the shop.

But if you can get that in writing you at least have some protection.

Another reason i did not follow through was 'Lotus express'. They are superior to 7/11's in many ways. Unfortunately for us it is not a franchise.

50 meters however is about 6-7 shophouse further. I would consider it when it would be never within 1000 meter for suburbs and 200 meters within city center.

On big roads on opposite sites is not that big a deal, even within 100 meters as the serve their own sides of the road. On the same side however it is a must to get a guarantee.

Of course another can open, like familymart but that is another franchise and competition is expected.

The 7/11 franchise is ONLY interested in their own profit and they could care less about the 'owners'.

When i figured that out i choose not to be one of their potential 'victims'.

Sure many of the 7/11's run great, but they are the ones that are settled a long time on very good locations. And with very few locations coming free around them that is effectively protecting their area, i know one who rented shophouses that where free and subleased them exactly for that reason.

if you could get one of those superb locations i would give it a try, anything else i would skip.

[Surin2001]

Do your research on location and then brand your own shop suitable name 24/7

Your own franchise in the making

[barrella]

Hi, I am interested in speaking to a 7-11 franchise owner. I am not interested in owning one myself but I would like some info regarding the company from the view of a franchisee. Your help would be really appreciated and I may even buy you a few beers.

Please PM me.

Thanks All.