Hello just wondering if any members can give info on how for example a 7/11 franchise works.

I would be happy to know .

Someone buys from 7-11 the right to have one or more stores. They could buy the right to an entire province, an entire country, or just one store.

When they buy it they agree to build it and run it like any other 7-11, stock items that are 7-11 specific, so that when a customer visits he always gets the same 7-11 experience and products.

I think I read that some group bought the rights for all of Thailand. I could be wrong. If they did they were required to open a certain number of stores. It could also be that they are allowed to sell rights to other people to own a store, but that would vary with the parent company.

7-11 makes its money first on the per-store cash franchise fee, and then by selling certain 7-11 products, and then the franchisee has to pay the parent company a percentage of the gross receipts.

It varies somewhat from company to company, but that's the gist of it.

1) You buy the right to put a 7/11 store in Soi such-and-such

2) A month later someone else buys the right to put a 7/11 store two doors away from you.

3) CP* thank you both kindly

4) You reflect on your stupidity

*CP own the Thai rights to 7/11. And a lot of other things. http://en.wikipedia.org/wiki/CP_ALL

When you buy the right for a 7/11 store from CP, you agree that if the store turns a certain profit, I think it's 40.000 Baht a month but can be mistaken, that another store will be opened in your neighborhood.

You get first choice to buy the rights for that second store, but otherwise CP runs it by themselves or finds another candidate.

1) You buy the right to put a 7/11 store in Soi such-and-such

2) A month later someone else buys the right to put a 7/11 store two doors away from you.

3) CP* thank you both kindly

4) You reflect on your stupidity

*CP own the Thai rights to 7/11. And a lot of other things. http://en.wikipedia.org/wiki/CP_ALL

and surprisingly enough not many close down

and surprisingly enough not many close down

Indeed. I'm not sure why 7/11s are so popular in Thailand. Possibly because they are shiny upmarket versions of the formerly ubiquitous mom and pop grocery stores that have largely disappeared in areas where 7/11s have appeared.

But I do think that at some point Thais will realise that 7/11s are very expensive and so they will shop elsewhere.

Within 2 minutes walk of my condo there are three 7/11s and three Family Marts. All sell Chang beer for 35B/can. A few yards further away towards the beach there is a mom and pop store which sells the same can for 30B. Guess which shop I would use.

Be aware, staffing is regulated, if a member of staff dosnt turn up you are fined the equivelant of their daily pay. Expect calls 24hrs a day from incompetent staff. I know 2 people that have said it was the worst thing they ever done and the profits were minimal....they were lucky as both had good locations in Central Pattaya, most others have customers early morning and evenings. The worst I can think of is the Family Mart that has opened at the new Dutch style complex on Suk near Bang Saray.....just where are the customers supposed to come from

The worst I can think of is the Family Mart that has opened at the new Dutch style complex on Suk near Bang Saray.....just where are the customers supposed to come from

Kevin Costner knew the answer: "if you open it, they will come". (paraphr.)

It's a mystery why Thais like paying over the odds in these convenience chain stores for the same items they could get for less elsewhere, but they do.

and surprisingly enough not many close down

Indeed. I'm not sure why 7/11s are so popular in Thailand. Possibly because they are shiny upmarket versions of the formerly ubiquitous mom and pop grocery stores that have largely disappeared in areas where 7/11s have appeared.

But I do think that at some point Thais will realise that 7/11s are very expensive and so they will shop elsewhere.

Within 2 minutes walk of my condo there are three 7/11s and three Family Marts. All sell Chang beer for 35B/can. A few yards further away towards the beach there is a mom and pop store which sells the same can for 30B. Guess which shop I would use.

7/11 or Family Mart cos Mom n Pops Chang is 6 months out of date and tastes like horse piss.

My Thai friend & I attended a franchise opportunity exhibition in Bangkok last year...

Saw the 7-11 booth & we chatted briefly with their reps.

CP owns the Master Franchise for Thailand...

A very well run & experienced business organization.

7-11 has franchises available to the Thais...

You can chat with them briefly ...but if you are serious...

BEFORE 7-11 IS WILLING TO SET AN APPOINTMENT TO FFURTHER DISCUSS A FRANCHISE...

THE THAI PROSPECT MUST SHOW THEM A BANK BOOK BALANCE OF AT LEAST 1 MILLION THAI BAHT...

Then the Thai prospective franchisee is given two options:

1. Pay 1.5 Million Thai baht and they select the location and train the Thai to be owner/manager.

The Thai receives guaranteed salary of 27,000 Thai baht monthly.

IF at end of one year or more, the Thai is not happy with the franchise, 7-11 will buy it back and pay 1 million Thai baht.

2. Pay 2.4 million Thai baht and be co-owner with 7-11 and share in the store profits.

I believe the Thai can receive 53% of the store profits...but has added profit/loss responsibilities.

Staffing, utilities, shrinkage, stock.

Again, if not happy with the franchise, after one year can ask for 1 million Thai baht in cash back to sell back to 7-11.

I am sure there is more to know and learn. But it seems to work well for many Thais.

tj

Someone buys from 7-11 the right to have one or more stores. They could buy the right to an entire province, an entire country, or just one store.

When they buy it they agree to build it and run it like any other 7-11, stock items that are 7-11 specific, so that when a customer visits he always gets the same 7-11 experience and products.

I think I read that some group bought the rights for all of Thailand. I could be wrong. If they did they were required to open a certain number of stores. It could also be that they are allowed to sell rights to other people to own a store, but that would vary with the parent company.

7-11 makes its money first on the per-store cash franchise fee, and then by selling certain 7-11 products, and then the franchisee has to pay the parent company a percentage of the gross receipts.

It varies somewhat from company to company, but that's the gist of it.

All Co. Ltd. (Thai company) have the exclusive rights for 7-eleven in Thailand, one will franchise from All Co. Ltd. Furthermore they have obtained the franchise rights for Miranmar (Burma), Cambodia, and Vietnam plus China, exclsuding the few excisting about 100 shops (Source: news stories at Thai Visa).

Been to one of the franchise exhibition too.

Was so interested, walked out like a tired worker.

Basically you pay the upfront cost, depending on the size, there is 3 types, small, medium, big.

The structure and availability of the product will be different for each of the sizes. The earnings quota will be different for each too.

The guaranteed salary should be explained in more detail. It's not a mere fixed salary. It's only when your store fail to make the minimum amount of revenue/profit, CP will carry out an investigation, and compensate you for that. It's their way of saying, If you join us, you have a guarantee to make money. HOWEVER, if after 1 year, you continue to make losses, you are out, they wont keep paying you.

The manager on duty has to be you. You can't just invest and let someone else run it. They need to follow strict quality controls. That's the reason the applicant is sent on a one month training boot camp. You live cp, you eat cp. I think you are allowed to have holidays on weekends, not sure. You need to take classes, and pass the exam. If you fail the exam, you have to pay again. Not the whole amount, but for the training. Maybe about 100,000 to 300,000 baht. Keep in mind, they won't return your money if you fail. So applying does have a cost. Only apply if you are serious and capable of it.

All expired stuff, it's your problem. Give it to your neighbors or eat it yourself. CP will take no responsibility. However, CP will take responsibility for your earnings. They will take about half. You don't decide this half, CP takes ALL revenues, and all your paid costs, then they give you your income. You do not get it firsthand. Like the representative explained, even if the bottle of water costs 5 baht for CP to make it. You still have to pay 15baht from CP to display it on your fridge. Once it's sold for 20, 2.5 goes to you. 2.5 goes to CP.

You do all the work. CP wins in every situation.

I walked out not as a franchise applicant, but as a shareholder. I love how they exploit people and how well they earn money. The more people work hard, the more franchise are opened, the shareholder sits on his sofa drinking coffee with more money rolling in.

how does a 7/11or another franchise work ?

Slowly! Ta da!

Get a Gai Yang Hah Dao franchise and I'll be your best customer. I love that damn 5 Star Chicken!!

Their website has all the info. I checked it last week. Its very informative.

A not so simple question ,but some brilliant replies , and informative that s what I like about TV .

All Co. Ltd. (Thai company) have the exclusive rights for 7-eleven in Thailand, one will franchise from All Co. Ltd. Furthermore they have obtained the franchise rights for Miranmar (Burma), Cambodia, and Vietnam plus China, exclsuding the few excisting about 100 shops (Source: news stories at Thai Visa).

CP All Plc. own the rights in Thailand, not All Co.ltd.

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

All Co. Ltd. (Thai company) have the exclusive rights for 7-eleven in Thailand, one will franchise from All Co. Ltd. Furthermore they have obtained the franchise rights for Miranmar (Burma), Cambodia, and Vietnam plus China, exclsuding the few excisting about 100 shops (Source: news stories at Thai Visa).

CP All own the rights in Thailand, not All Co.ltd.

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

We talk about same company. CP All Plc, sorry I just "quote" from memory...

I have a Thai friend that owns 3 stores. They built from 1 and worked up. Right now they are doing very well thank You.

Both driving nice new cars owning a few houses and other businesses.

7-11 and CP are no different than any other franchise. Macdonalds and all North American companies are the same. You need to bust your assets in the beginning and put in a lot of hours until you get the right people to work the system for you. Then you just show up and check on things daily collect the cash pay the bills and carry on.

holidays are a bit of a b!tch as someone has to be around to look after the store all the time. Young son is getting a crash course LOL

Several years ago a friend who was a very successful businessman wanted to set his GF up in a 7-11 franchise. He paid for her to go through the training program but when he closely analyzed the financial terms as they became apparent, it did not look like a very good deal. For one thing, at least at that time, she would have no choice of store location, the company would assign it.

He checked out Family Mart as well and thought they gave a better deal but a Family Mart will never have the volume of a 7-11.

Ultimately, he gave up the mini-mart idea and set her up in a stall in Platinum where she sells hand made accessories made in the north...quite successfully, I understand.

I looked into getting a US franchised sandwich shop for bangkok (not subway) but was turned down even though I had the money I had no restaurant experience. I didn't think that was so Important for sandwich shop but there you go.

I also see that sunrise tacos has a franchise available now for mbk and other locations. I'm tempted because looks like their outlets do well (though personally I'm not overly impressed with their food myself ! )

Sent from my SM-N900 using Thaivisa Connect Thailand mobile app

1) You buy the right to put a 7/11 store in Soi such-and-such

2) A month later someone else buys the right to put a 7/11 store two doors away from you.

3) CP* thank you both kindly

4) You reflect on your stupidity

*CP own the Thai rights to 7/11. And a lot of other things. http://en.wikipedia.org/wiki/CP_ALL

If that's true then it's your own fault for allowing it in the agreement you signed. Why would someone agree to that? If they did agree to it, then of course it's likely to happen.

and surprisingly enough not many close down

Indeed. I'm not sure why 7/11s are so popular in Thailand. Possibly because they are shiny upmarket versions of the formerly ubiquitous mom and pop grocery stores that have largely disappeared in areas where 7/11s have appeared.

But I do think that at some point Thais will realise that 7/11s are very expensive and so they will shop elsewhere.

Within 2 minutes walk of my condo there are three 7/11s and three Family Marts. All sell Chang beer for 35B/can. A few yards further away towards the beach there is a mom and pop store which sells the same can for 30B. Guess which shop I would use.

7/11 or Family Mart cos Mom n Pops Chang is 6 months out of date and tastes like horse piss.

Personally, I have never drank horse piss, but I will bow to your expertise.... .however, there are sell by date on the cans, are there not?

7/11 or Family Mart cos Mom n Pops Chang is 6 months out of date and tastes like horse piss.

Indeed. I'm not sure why 7/11s are so popular in Thailand. Possibly because they are shiny upmarket versions of the formerly ubiquitous mom and pop grocery stores that have largely disappeared in areas where 7/11s have appeared.

But I do think that at some point Thais will realise that 7/11s are very expensive and so they will shop elsewhere.

Within 2 minutes walk of my condo there are three 7/11s and three Family Marts. All sell Chang beer for 35B/can. A few yards further away towards the beach there is a mom and pop store which sells the same can for 30B. Guess which shop I would use.

Personally, I have never drank horse piss, but I will bow to your expertise.... .however, there are sell by date on the cans, are there not?

Unfortunately I have downed horse piss a number of times. I think the bottle said "Budweiser."

Someone buys from 7-11 the right to have one or more stores. They could buy the right to an entire province, an entire country, or just one store.

When they buy it they agree to build it and run it like any other 7-11, stock items that are 7-11 specific, so that when a customer visits he always gets the same 7-11 experience and products.

I think I read that some group bought the rights for all of Thailand. I could be wrong. If they did they were required to open a certain number of stores. It could also be that they are allowed to sell rights to other people to own a store, but that would vary with the parent company.

7-11 makes its money first on the per-store cash franchise fee, and then by selling certain 7-11 products, and then the franchisee has to pay the parent company a percentage of the gross receipts.

It varies somewhat from company to company, but that's the gist of it.

The Master Franchisee has the rights to the country, and he is responsible for any Franchisee's below him to make sure they operate within the company policies.

I approached Nando's as a prospective master franchisee for Thailand and asked them for information, maybe because I used a yahoo email address I don't think they took me seriously judging by the reply I received, it was far from informative and assured me that I need to have the money to pull it off.

I could have been Warren Buffet for all they knew.

I am also curious about the details of these transactions. I am more interested in Mcdonalds.

Here is what I see (which drives me crazy, so bare with me, haha):

There is a line in Mcdonalds at the cashier. The cashier takes the order from the first guy in line, THEN the SAME cashier employee (even though they have 20 Thai people running around behind the counter) starts to pack and get the order ready while the next customer at the cashier waits for this. There is only one way to do this of course..... cashier is a cashier and only takes orders, and another employee packs the orders. I really don't think this is too hard too see as being terribly more efficient, so who knows what thought processes go on here in the land of smiles (of which you have to wait a long time for).

I personally don't think Mcdonalds would condone or even permit this type of inefficiency under it name. They just don't want people to associate Mcdonalds with this type of experience.

I have thusly deduced that Thailand had to buy the right to run Mcdonalds the way they see fit. I could be totally wrong of course. Any opinions.

I have also wondered about the ubiquitous Walmart, and their conspicuous absence here. They are a company based on efficiency, and my theory is they know the Thais will manage the stores in their own, very inefficient ways, no matter what they agree to in writing. So, walmart just wisely opts out.

Taken from a hostel franchise in Pattaya

“Franchising is an organised system of growth by which a business with a successful concept provides other people, in other locations, the rights and knowledge to copy exactly the success of the original.” Paul M Tessller II President Coca-Cola Corp. 1953-71

I have been reading up on the same subject prior to moving full time to Thailand in 2 years time, Franchise models vary from company to company on training, royalties, purchase costs, marketing, non Thai ventures, franchise fees etc etc. The issue for me was is the franchisee simply selling franchises as a way of providing income for them selves with the net result that the franchisee is left with no back up and ultimately no value in the business.

The following is quite a good site (if you look back at their December 2013 posts it explains more about what to look for in a franchise)

https://www.facebook.com/pages/Thailand-Franchise-Organisation/586975021372970?ref_type=bookmark

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I am also curious about the details of these transactions. I am more interested in Mcdonalds.

Here is what I see (which drives me crazy, so bare with me, haha):

There is a line in Mcdonalds at the cashier. The cashier takes the order from the first guy in line, THEN the SAME cashier employee (even though they have 20 Thai people running around behind the counter) starts to pack and get the order ready while the next customer at the cashier waits for this. There is only one way to do this of course..... cashier is a cashier and only takes orders, and another employee packs the orders. I really don't think this is too hard too see as being terribly more efficient, so who knows what thought processes go on here in the land of smiles (of which you have to wait a long time for).

I personally don't think Mcdonalds would condone or even permit this type of inefficiency under it name. They just don't want people to associate Mcdonalds with this type of experience.

I have thusly deduced that Thailand had to buy the right to run Mcdonalds the way they see fit. I could be totally wrong of course. Any opinions.

I have also wondered about the ubiquitous Walmart, and their conspicuous absence here. They are a company based on efficiency, and my theory is they know the Thais will manage the stores in their own, very inefficient ways, no matter what they agree to in writing. So, walmart just wisely opts out.

Mcdonalds is a much better franchise operation if you have the money for it. I have asked for it, some 10 years ago, and it was about 10-20 million baht, and the success rate is much higher than 7-11 stores. Basically if you have the money, it's basically 99% bulletproof investment.

About Walmart, I haven't really seen a walmart in Asian countries. Have you? The reason may not be in the efficiency, more in the market. Walmart just isn't targeting the international market? Or 70 year old Asians just don't want to work at hypermarkets, prefer to sit home and watch tv.

And of course, we have Makro here already, so not like there is a hole that needs filling. What I am aware of is, sometimes these companies may not open their own stores, but they will have a shareholding interest in other 'store brands', as long as it is the same business.

My Thai friend & I attended a franchise opportunity exhibition in Bangkok last year...

Saw the 7-11 booth & we chatted briefly with their reps.

CP owns the Master Franchise for Thailand...

A very well run & experienced business organization.

7-11 has franchises available to the Thais...

You can chat with them briefly ...but if you are serious...

BEFORE 7-11 IS WILLING TO SET AN APPOINTMENT TO FFURTHER DISCUSS A FRANCHISE...

THE THAI PROSPECT MUST SHOW THEM A BANK BOOK BALANCE OF AT LEAST 1 MILLION THAI BAHT...

Then the Thai prospective franchisee is given two options:

1. Pay 1.5 Million Thai baht and they select the location and train the Thai to be owner/manager.

The Thai receives guaranteed salary of 27,000 Thai baht monthly.

IF at end of one year or more, the Thai is not happy with the franchise, 7-11 will buy it back and pay 1 million Thai baht.

2. Pay 2.4 million Thai baht and be co-owner with 7-11 and share in the store profits.

I believe the Thai can receive 53% of the store profits...but has added profit/loss responsibilities.

Staffing, utilities, shrinkage, stock.

Again, if not happy with the franchise, after one year can ask for 1 million Thai baht in cash back to sell back to 7-11.

I am sure there is more to know and learn. But it seems to work well for many Thais.

tj

So I burn 1.5 million Bath and have to work my ass off and I won't make enough to pay a third of my bills

If I wanted to be exploited I would stay in my homeland...

There is a franchise and business opportunities exhibition at bitec , Bangna 24-27 July.