Franchisees Key to 7-Eleven’s Plans
The nation’s largest convenience store operator is looking to get out of running its own stores and turn them over to franchisees instead.
7-Eleven Inc. has targeted 2013 as the year it will have its stores almost all operated by franchisees. Today, about 3,650 of 7-Eleven’s 5,600 U.S. stores are franchised.
"We’ve been franchising stores since 1964; this isn’t a new thing for us," Jeff Schenck, senior vice president of franchise and development for 7-Eleven, told The Dallas Morning News. "Now we’re ready to convert to 100 percent."
Last week, the company offered to sell all its stores in the north of Texas to franchisees. That state and Florida have the most company-owned and operated locations.
Store managers are given first shot at become franchisees at company-owned locations.
According to Mr. Schenck, it’s a good investment. "Franchise stores outperform company stores. It’s the difference between owning your home and renting a house. When an individual has invested in it and is adding sweat equity, he’s also becoming involved in the community."
Discussion Questions: What do you see as the pros and cons for 7-Eleven in its plan to go 100 percent franchisee operated? Do you see this becoming a trend in the convenience store sector?