Going Into Negotiations To Open A 7-11 Franchise - Help Needed

[Trembly]

I hang out in the Century Mall on Rangnaam which is near where I live and there's a bunch of stalls, mostly selling make-up, run by cute gals with farang sponsors. I doubt they make anywhere close to what a successful 7-11 does but it's a pleasant environment, the gals seem happy so they must be doing reasonably, and the investment/headache seem a lot less than would be for running a franchise.

If I were the OP I would get my feet wet first in a mall stall.

็Having said that, 7-11 do all that they can to make their franchises are as fool proof as possible. If the franchisee is unwilling or incapable of undergoing manager training by 7-11 in order to personally oversee the franchise then they can simply request a manager to be assigned to them from 7-11, with wages paid by the franchisee. The role of the franchisee is then reduced to making sure that the manager isn't doing anything untoward . . .

Edited November 25, 2012 by Trembly

[noob7]

I hang out in the Century Mall on Rangnaam which is near where I live and there's a bunch of stalls, mostly selling make-up, run by cute gals with farang sponsors. I doubt they make anywhere close to what a successful 7-11 does but it's a pleasant environment, the gals seem happy so they must be doing reasonably, and the investment/headache seem a lot less than would be for running a franchise.

If I were the OP I would get my feet wet first in a mall stall.

You can satisfy a gal with a lot less investing, for sure. Even renting a small shop, near a bar area (with all the girls she may know), so that the gf can sell shoes and dresses, is a better investment. it may cost the lad the rent, maybe the initial fitting out, and every now and then, a ticket to Bangkok for merchandise purchases, but:

The gal is proud, to earn a living. And after a while, she will even have the idea, that she's doing it alone. Means: Not asking for extra money. the rent and minor support shouldn't count.

[noob7]

I hang out in the Century Mall on Rangnaam which is near where I live and there's a bunch of stalls, mostly selling make-up, run by cute gals with farang sponsors. I doubt they make anywhere close to what a successful 7-11 does but it's a pleasant environment, the gals seem happy so they must be doing reasonably, and the investment/headache seem a lot less than would be for running a franchise.

If I were the OP I would get my feet wet first in a mall stall.

็Having said that, 7-11 do all that they can to make their franchises are as fool proof as possible. If the franchisee is unwilling or incapable of undergoing manager training by 7-11 in order to personally oversee the franchise then they can simply request a manager to be assigned to them from 7-11, with wages paid by the franchisee. The role of the franchisee is then reduced to making sure that the manager isn't doing anything untoward . . .

And because it is a Farang (in this example) he need to hire another Thai , 'to make sure', Because he won't have anything to say, as long he has no wp, that let him do a job, that usually a Thai can/have to do.

[Khun Jean]

I would check with Lotus Express or another FamilyMart.

Dealing with the #1 on the market, 7-11, may prove very hard in terms of negotiations, conditions... Even more difficult to manage if you're a foreigner.

Other brands may be more flexible/attractive.

But globally, yes, first priority is prudence and anticipating the worst (in all fields) before making the final decision. A reliable lawyer would be a big plus (not a relative's cousin).

Lotus express is not a franchise.

Another topic for the op to read:

[Humbugged]

NOTE- not to op but others- dont do business with people you see nude!

.......I actually oppose this advice, but thats just me.

I once took a possible business partner to a sauna and spa bath for negotiations, just to see what he was packing.

[MyFriend You]

Dont do it!!!!!!!!!!!!!!!!

until you convince us of your GFs qualifications. 7-11s are not toys like beauty saloons, and bars are.........................lol.

i pray you didnt meet in a drinking establishment knid of place.

ONE WORD "LAWYER" PREFERABLY OF YOUR OWN CHOOSING, ASSOCIATED WITH AN EX-PAT FRIENDLY COMPANY.

[MyFriend You]

Don't do it. You're not ready for it.

I TOTALLY AGREE - IF YOU HAVE TO ASK THE THAI VISA FORUM ON A SUBJECT AS IMPORTANT AS THIS - YOU AIN'T READY FOR A BUSINESS IN THAILAND. nothing against any of the advice we get here - but just asking tells me you have reservations - reservations that can only be answered by a Law Firm, or you will be wqriting the forum in five years or so how the Family took control of your store and keft you broke.

[Spoonman]

One of the things that made me decide to never ever open a 7-11 is that they control where a shop will be opened. We had a good location and it would probably work, except 7-11 does not guarantee that another one will be opened right across the street. There is no zoning. If 7-11 finds the location good enough for 2 stores, there goes half of your sales and up to 75% of your profit.

108 or family mart are other options, but i not investigated those.

Trying to get my head round this but if you lose 50% of your sales how do you lose up to 75% of your profit ?

[noob7]

Don't do it. You're not ready for it.

I TOTALLY AGREE - IF YOU HAVE TO ASK THE THAI VISA FORUM ON A SUBJECT AS IMPORTANT AS THIS - YOU AIN'T READY FOR A BUSINESS IN THAILAND. nothing against any of the advice we get here - but just asking tells me you have reservations - reservations that can only be answered by a Law Firm, or you will be wqriting the forum in five years or so how the Family took control of your store and keft you broke.

That will happen with a law Firm 'answer', too. Lawyers in Thailand suggesting simple that, what thy can arrange and has the biggest revenue (for them).

It will not give a foreign investor more options, to control his investment. Only a different description, about his options.

Anyway, he will have to sign contracts in Thai. These are the only valid contracts here. doesn't matter, what the englisch translation is telling him.

[noob7]

One of the things that made me decide to never ever open a 7-11 is that they control where a shop will be opened. We had a good location and it would probably work, except 7-11 does not guarantee that another one will be opened right across the street. There is no zoning. If 7-11 finds the location good enough for 2 stores, there goes half of your sales and up to 75% of your profit.

108 or family mart are other options, but i not investigated those.

Trying to get my head round this but if you lose 50% of your sales how do you lose up to 75% of your profit ?

The costs are still the same, but a higher percentage of the revenue.

Edited November 25, 2012 by noob7

[Spoonman]

One of the things that made me decide to never ever open a 7-11 is that they control where a shop will be opened. We had a good location and it would probably work, except 7-11 does not guarantee that another one will be opened right across the street. There is no zoning. If 7-11 finds the location good enough for 2 stores, there goes half of your sales and up to 75% of your profit.

108 or family mart are other options, but i not investigated those.

Trying to get my head round this but if you lose 50% of your sales how do you lose up to 75% of your profit ?

The costs are still the same, but a higher percentage of the revenue.

25% margin on goods, nice.

[noob7]

You still should try harder!

"Trying to get my head round this"

[Khun Jean]

A calculator can help.

And it was "up to" not exactly 75%.

The "up to" depends on which products run the best in a location.

[Fgis]

Interesting. How much does it cost and what is negotiable ?

[Spoonman]

A calculator can help.

And it was "up to" not exactly 75%.

The "up to" depends on which products run the best in a location.

did you note that I also mentioned up to ?

[SICHONSTEVE]

Dont do it!!!!!!!!!!!!!!!!

until you convince us of your GFs qualifications. 7-11s are not toys like beauty saloons, and bars are.........................lol.

i pray you didnt meet in a drinking establishment knid of place.

My Girlfriend is working in a 5 Star Hotel Spa - and I am very well aware about your mentoned Concerns

I will let 7-11 decide, if she has the Qualification to be the Franchise Manager - if not, I will find someone else

thanks anyway..

Check out the benefits.

If it is not your property, and not your Gf doing the manager job, what will be your interest?

How much would it be, in case, you put the money on a fixed deposit account?

Afaik, it's a good deal, for the owner of the property, and for the franchiser, in case, his family is in the manager position. Plus the one or the other brother (???) or sister is employed, too. So it is the best deal, if the franchiser is owning the property, and the family runs the 7/11.

I don't want to comment on the GF aspect as I don't know the situation regards this.

I believe that you have to put up 1.0 million baht - that buys you stock and they set it up for you.

If you position it wisely then they are real money-spinners and will give you a good income but get this aspect wrong and you might come a cropper. I have also heard that a majority of the good sites (in BKK anyway) have been taken already so this would need some thorough researching.

Don't jump into it too hastily (especially due to the precarious nature of installing a girl-friend as manager). Also, I think the business is actually owned by 7/11 and not you, plus she would need to undergo a certain amount of training so it is probably more involved than you think it is. I hope this helps.

Good luck if you go for it!!

[cheechoo]

Girl friend works in a 5 star massage joint. Shouldnt dude be asking about massage shops!!!!!!!!!!!!!!!!!!!!!!!

[Trembly]

Dont do it!!!!!!!!!!!!!!!!

until you convince us of your GFs qualifications. 7-11s are not toys like beauty saloons, and bars are.........................lol.

i pray you didnt meet in a drinking establishment knid of place.

My Girlfriend is working in a 5 Star Hotel Spa - and I am very well aware about your mentoned Concerns

I will let 7-11 decide, if she has the Qualification to be the Franchise Manager - if not, I will find someone else

thanks anyway..

Check out the benefits.

If it is not your property, and not your Gf doing the manager job, what will be your interest?

How much would it be, in case, you put the money on a fixed deposit account?

Afaik, it's a good deal, for the owner of the property, and for the franchiser, in case, his family is in the manager position. Plus the one or the other brother (???) or sister is employed, too. So it is the best deal, if the franchiser is owning the property, and the family runs the 7/11.

I don't want to comment on the GF aspect as I don't know the situation regards this.

I believe that you have to put up 1.0 million baht - that buys you stock and they set it up for you.

If you position it wisely then they are real money-spinners and will give you a good income but get this aspect wrong and you might come a cropper. I have also heard that a majority of the good sites (in BKK anyway) have been taken already so this would need some thorough researching.

Don't jump into it too hastily (especially due to the precarious nature of installing a girl-friend as manager). Also, I think the business is actually owned by 7/11 and not you, plus she would need to undergo a certain amount of training so it is probably more involved than you think it is. I hope this helps.

Good luck if you go for it!!

There are loads of untapped locations in Bang-Nowhere on the outskirts of Bangkok, or potentially even more lucratively, in the countryside. I've seen a 7-11 land in a town of about 10'000 in the middle of Isan and from then on I've hardly ever seen it empty (and I do visit it at odd hours). Shortly afterwards Tesco moved in next door and judging purely by appearances the 7-11 just shrugged and laughed! Far be from it for me to be a 7-11 fan boy but I have to admit that their business and marketing strategy seems to be very effective indeed, making it a very likely investment. I've heard that if 7-11 hasn't got a location on their list they may be willing to assess it for suitability.

Edited November 27, 2012 by Trembly