Franchise 7-11 - Any Thought?

[vertigo4u]

I am planning to run a 7-11 Franchise, but I have no Experience in running a Business in Thailand

I have found the right Spot and a well sized Shop with a long Term Rental for 10 Years

How is the best Way to proceed?

I will have to open - or overtake an existing - Company!

I got the Information, that there is a "B" Franchise for 1,5 Mio Baht and a "C" for 2,7 Mio Baht

I have the Money for the "B" and for 2 Years Rent, but I would prefer the "C" - its seems to get a better Participation of the "Income"

Would any Thai Bank give me a Loan?

As I stated:

I am a Newbee in running a Biz in Thailand and I am searching for Advices for the "Start-Up"

Thanks in Advance for any Posting to this Thread

Cheers

[pauleddy]

I guess that you must have a Thai spouse or partner---just as you must have the same if u open a school. One director must be Thai?

I would not open a business as a single farang with no prior exp. U r asking for probs.

I think that there is also a law that says that u must employ a number of local staff.

You need to check all of this stuff.

P Eddy

[Vertigotogo]

I do not profess to be a business expert but I spent a large part of my adult life running (successful) businesses, including franchises.

What you are saying rings alarm bells for me. If anything, I would first gain some business experience elsewhere before getting into a franchise deal (they can be extremely frustrating). Hire a good lawyer who is experienced in Franchise contracts and listen to their advice.

Best wishes and good luck.

[antony77]

I guess that you must have a Thai spouse or partner---just as you must have the same if u open a school. One director must be Thai?

I would not open a business as a single farang with no prior exp. U r asking for probs.

I think that there is also a law that says that u must employ a number of local staff.

You need to check all of this stuff.

P Eddy

If you are a foreigner you must employ 7 or 8 Thais to get a work permit. The business must be 51% Thai owned.

If you have a Thai wife no problem. You wife can be counted as 1 Thai. About another 6 Thais would be what you would require to Manage a 7-11 open 16 hours a day. If you can fulfill all these requirements I think it is a very good and profitable business.

[up-country_sinclair]

^

I think I remember reading somewhere on this forum that family members of the franchise owner are not allowed to work in that 7-11.

[Sparkles]

Tread carefully you are entering a land mine area. Position is everything in this type of business. Do your homework very catefully,try to find a falang who has a 7/11 franchise and learn from his experinces and good luck.

[thrilled]

If you can afford to lose 3-4 million baht,and still live comfortable then go for it.If you need this money to live,you might want to think about it really hard.Worst case

scenario have to go back to work for A living.Oh one other thing,you won't be able to work in the store yourself.You would be taking work from A thai national.

[RAZZELL]

Personally, I think a 7-11 in the right area is an excellent business.

But you have to be Thai and preferably a graduate with retail experience to get a franchise from CP company (not sure if it can be 51-49% company?)

http://www.7eleven.co.th/corp/franching_how_to_be_a_franchise.php

I remember a debate on here somewhere about whether 7-11 had achieved some sort of "Veblen" status?

http://en.wikipedia.org/wiki/Veblen_good

RAZZ

Edited July 11, 2010 by RAZZELL

[TPI]

A good friend of mine (a Thai lady) has just taken her redundency money and invested in a 7/11....she was very happy with the support she was given and is making money from the first day she was open. Contact 7/11 at their HQ in Sala Deng (I think?) And they will give you all the information you will need to make a decision...in English! Best of luck!

[djayz]

I guess that you must have a Thai spouse or partner---just as you must have the same if u open a school. One director must be Thai?

I would not open a business as a single farang with no prior exp. U r asking for probs.

I think that there is also a law that says that u must employ a number of local staff.

You need to check all of this stuff.

P Eddy

If you are a foreigner you must employ 7 or 8 Thais to get a work permit. The business must be 51% Thai owned.

If you have a Thai wife no problem. You wife can be counted as 1 Thai. About another 6 Thais would be what you would require to Manage a 7-11 open 16 hours a day. If you can fulfill all these requirements I think it is a very good and profitable business.

I'm not trying to contradict you, but I was informed earlier this year that the law was changed. Apparently every business set up by a foreigner (49% falang, 51% Thai) is legally required to employ 4 Thai employees (as apposed to the 7 or 8 you mentioned above - I think this is the old figure). The 51% Thai ownership is divided between 2 Thais (of your choice), one of them will be registered as the director of the business. Approximately 2 weeks afterwards, you can be registered as being the sole director.

My advice to you is to go to one of the "accounting firms", they practically set the whole thing up for you and guide you through the process.

[FarangCravings]

I guess that you must have a Thai spouse or partner---just as you must have the same if u open a school. One director must be Thai?

I would not open a business as a single farang with no prior exp. U r asking for probs.

I think that there is also a law that says that u must employ a number of local staff.

You need to check all of this stuff.

P Eddy

If you are a foreigner you must employ 7 or 8 Thais to get a work permit. The business must be 51% Thai owned.

If you have a Thai wife no problem. You wife can be counted as 1 Thai. About another 6 Thais would be what you would require to Manage a 7-11 open 16 hours a day. If you can fulfill all these requirements I think it is a very good and profitable business.

From what I understand that is not exactly correct, if you open a thai limited partnership and ensure you have a thai 51% partner you then need to capitalize the company for 2 million (does not mean you have to have 2 mil in cash) you can then actually employ yourself in your company there is no requirement to employ x amount of locals.

You must ensure you trust your 51% thai partner

After re reading the entire thread my post refers to a small business or if you need to get a work permit and not for a 7-11

Edited July 12, 2010 by FarangCravings

[RAZZELL]

From what I understand that is not exactly correct, if you open a thai limited partnership and ensure you have a thai 51% partner you then need to capitalize the company for 2 million (does not mean you have to have 2 mil in cash) you can then actually employ yourself in your company there is no requirement to employ x amount of locals.

You must ensure you trust your 51% thai partner

After re reading the entire thread my post refers to a small business or if you need to get a work permit and not for a 7-11

And can you own a 7-11 Franchise with one of these companies?

RAZZ

[hhgz]

Sunbelt Asia posted, in minute detail, the travails of running a franchised operation. I suggest that you search for the post.