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[george]

Three banks offer financing for 7-Eleven franchise

BANGKOK: -- Entrepreneurs wanting to jump on the 7-Eleven franchise bandwagon can now access financing from Siam City Bank, Kasikornbank and Siam Commercial Bank.

"We will allow individual investors to select successful outlets from the list of our 7-Eleven stores and turn them into their franchised outlets," Korsak Chairasamisak, CEO of CP All, the rights holder for Thailand, said yesterday.

"We want to increase the proportion of franchised outlets to about 50 per cent by the end of this year," he said at the signing of the agreement with the three banks.

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

"We will invest about Bt4 billion this year to open about 500 7-Elevens locally. So far 30-40 have been opened this year," he said.

The company expects to grow its sales by 10-15 per cent this year from about Bt90 billion last year.

A 7-Eleven serves about 1,200 customers a day on average, or about 6 million people across the country.

The company opened its first store in 1989 and took about one and a half years before franchising store No 28 on New Phetchaburi Road between Soi 5 and 7.

Kasikornbank president Prasarn Trairatvorakul said the franchise system could solve all the major concerns faced by entrepreneurs - lack of financial support, professional management and know-how - and reduce the risk of operating a business.

"We have launched a new loan service for 7-Eleven franchisees, who can borrow up to Bt2.5 million," he said.

Siam City Bank president Chaiwat Uthaiwan said his bank was the first to grant loans to 7-Eleven franchisees back in 2007.

About 20 per cent of 7-Eleven franchisees had used the loan service from Siam City Bank, with outstanding loans reaching Bt500 million.

Kannikar Chalitaporn, president of Siam Commercial Bank, said the weak point of running a small business was the lack of a good management system.

"7-Eleven can provide a strong system to franchisees, who can combine them with their good entrepreneurship into a complete retail solution," she said.

-- The Nation 2010-02-04

[newsfooter][/newsfooter]

[Boater]

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

and where will they fit these stores ?, in some locations there is a 7-11 every 100 metres, with 2 family marts in between them !

what is the yearly profit of one of these stores anyway?

[SeanMoran]

Okay then. What the heck! Where do I sign?

[arkom]

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

and where will they fit these stores ?, in some locations there is a 7-11 every 100 metres, with 2 family marts in between them !

what is the yearly profit of one of these stores anyway?

agree with you on that, in phuket i saw a 7-11 that was next to a vacant store and a 7-11 next to that, less than 20 feet away!

Edited February 4, 2010 by arkom

[SeanMoran]

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

and where will they fit these stores ?, in some locations there is a 7-11 every 100 metres, with 2 family marts in between them !

what is the yearly profit of one of these stores anyway?

agree with you on that, i phuket i a 7-11 that was next to a vacant store and a 7-11 next to that, less than 20 feet away!

Still surely it's more tangible than teaching English for a crust, isn't it?

[arkom]

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

and where will they fit these stores ?, in some locations there is a 7-11 every 100 metres, with 2 family marts in between them !

what is the yearly profit of one of these stores anyway?

agree with you on that, i phuket i a 7-11 that was next to a vacant store and a 7-11 next to that, less than 20 feet away!

Still surely it's more tangible than teaching English for a crust, isn't it?

haha, i just re-read my post and...wow i gotta proofread first!

[Crushdepth]

Thailand needs more 7-11s. God forbid anyone would have to move more than 15 metres to get their mama noodles.

[SeanMoran]

Thailand needs more 7-11s. God forbid anyone would have to move more than 15 metres to get their mama noodles.

KFC delivers to your door. That's what we need from 711 now. HOME DELIVERY!

(save that 15 metre walk)

[Gary A]

It does appear that some areas have a 7-11 on every corner. Then again, where I live the nearest 7-11 is 30 kilometers away. Our area is ripe for a 7-11.

[nakachalet]

the reporting of the article is very lacking in many respect.

for example, as a reader or even an investor, surely i would like to know what is the amount expected from banks before it would granted the 2.5mil baht load to open up a 7-11....?

the reporter and the editor are really not doing their job in informing consumers who might be remotely interested....

from my personal opinion, the banks appear to be in trouble in trying to find viable potential investors on their own, therefore they are seeking potential investors thru this poorly worked out ad campaign.... trying to lure customers....

essential info that investors need to digest before committing is much lacking.

i personally came to the conclusion that if the deal is really sweet indeed.... their own friends and relatives would have gobbled up this deal long time ago.... LOL

it is very much like NPL, the choicest location and property have already been divided and subdivided among the directorial, managerial and secretarial circles, and among their friends and relatives; before the rest of the properties would be placed on the market....

how do i know, well.... i used to pick from the basket before the basket was even formed.... LOL

[bushwacker]

It does appear that some areas have a 7-11 on every corner. Then again, where I live the nearest 7-11 is 30 kilometers away. Our area is ripe for a 7-11.

Hey Gary ... I totally agree with you. I was starting to get depressed reading the comments before I got to yours. Good to know that there are others out there with a little foresight and imagination. I am in a city with many 7/11's but there could be easily 100 more. BUT really the money would be made in moving to a small city or village that does not have one or any thing else like it. It seems the 7/11 draws people and kids like flies to sh_t. It is really funny to see hordes of people to walk into a store and buy processed crappy food for 2 times what they could buy from a good street vender. Hmmm should I buy a good healthy meal or donut??? A lot of profit to be made for the right people.

[Damaz6052]

Franchised stores make up 49 per cent of the 5,300 7-Elevens in the country and the company wants to take that to 58 per cent of 7,000 stores in 2013.

and where will they fit these stores ?, in some locations there is a 7-11 every 100 metres, with 2 family marts in between them !

what is the yearly profit of one of these stores anyway?

agree with you on that, in phuket i saw a 7-11 that was next to a vacant store and a 7-11 next to that, less than 20 feet away!

And now it's Tesco Express next to 7-11!!

Edited February 5, 2010 by Damaz6052

[filingaccount]

I need at least 2 more 7-11's in my area... The closest one is quite far away at 180 paces.

There is only 4 within my line of sight, plus one family mart. That is not nearly enough.

Funny thing is that they still try to sell stale bread and bakery left over from previous days/weeks.

It seems to be a great business for CP group, but a terrible one for franchisees.

Thailand needs more 7-11s. God forbid anyone would have to move more than 15 metres to get their mama noodles.

KFC delivers to your door. That's what we need from 711 now. HOME DELIVERY!

(save that 15 metre walk)

[gilbreth]

Hi, I am also evaluating this opportunity. I developed the attached model based on what information I learned from CP group, and what I could read in the papers. Seems to be a good opportunity (Type C only though). Would appreciate if somebody could review this and let me know if I am heading in the right direction? Thank you very much, I will send the soft copy to anyone who can contribute some analysis. I am assuming you can keep all profits since you're already paid the franchise fee and "management fee?"

[nakachalet]

gilbreth

if u r really serious about this, u should go direct to 7-11 franchize office and get something solid for your worksheet....

good calculation for your future profits....

[quiksilva]

Curious to see how applications for these loans from foreigners will be treated, these banks are not exactly well known for their farang friendly financing policies!

Edited February 8, 2010 by quiksilva