There are hundreds of 7-Eleven outlets across the country and this is one brand which Malaysians will not get enough of. While the initial franchise fees are quite high, venturing into this business can be quite profitable as it is an international brand. Furthermore, you will have help and assistance in terms of marketing and interior design as well as other areas like inventory and such.
More about 7-Eleven
7-Eleven is perhaps one of the most recognized brands in convenience stores around the world today. In Malaysia, it is owned by the Berjaya Group where entrepreneurs are encouraged to join this network through a franchise business model.
The 7-Eleven store started operations in Malaysia in 1984 and it was only in 2009 when the franchising program started. This was at a time when the brand opened its 1,000th branch in the country. Since then, 7-Eleven has continued to grow by leaps and bounds through this unique program and to date, it has about 1,500 stores around Malaysia where it serves close to a million customers every day.
To be eligible for the franchise program with 7-Eleven, the standard term is 10 years. This will be renewable for an additional 10 years when it expires. The initial franchise fee is at RM100,000 which is not refundable. There is a RM50,000 refundable security deposit while the entrepreneur will need to allocate about RM100,000 for stock purchases in the first round.
After that, there is a 50:50 profit sharing ratio between the franchiser and franchisee while a 2% monthly sales turnover will be given to the franchisee who will be responsible for the cost of employing staff, shortages, store maintenance and miscellaneous expenses. On top of that, from the sixth year onwards, the franchisee will have to pay RM1,000 monthly in terms of royalties.
It must be noted that the franchisee is allowed to choose their own locations for the operation of the store although there is a certain restriction in terms of proximity with the closest 7-Eleven store within the same vicinity.
