Guy DePlacido
September 27,2011
Business And Society
Professor Fleury-Lawson
Homework #4
The franchise that I analyzed was 7-eleven. 7-eleven is the biggest convenience store franchise in the world. There are over 42,000 stores worldwide including approximately 7,600 stores just in the United States. They began franchising in 1964 and have grown very rapidly. 7-eleven also assists you in almost every aspect of business. They provide training for managers and employees in order to keep your business running smoothly. They have a business consultant to help maximize store efficiency and analyze sales data. They provide many bookkeeping and accounting services so you can spend more time worrying about the customers. The technology that 7-eleven provides makes it much easier to order items and they also provide you with the property and equipment needed to start your business. As you can see, 7-eleven is a very interactive franchise. They truly want all of their stores to succeed and that is the reason that they have so many stores worldwide.
The required capital to invest in this franchise is very high at $200,000. The reason that it is so high is that there is a lot of things that you would have to purchase to keep you store up and running. Another great perk of joining a huge franchise such as 7-eleven is that they do provide merchandising and advertising support in order to keep your customers coming back for more. This will make business a lot easier as well because you will never have to use your own money to advertise your business. They also will find a good location for you to build your business. They can help you find where the existing franchises are and where the demand for them is high. This is very important because location in some cases is just as important as what you are selling. Demand for most of the products sold in 7-elevens will remain high seeing as most convenience stores do. Everyone needs a store to go and get something “convenient” and that is why it is such a success. My search has been able to answer a lot of the questions posed in Figure 5.8, however, there are some that went unanswered. Some unanswered questions are ones about net profits, franchising fees and your investments but if you call their service hotline, they will most likely be able to answer these for you. I think this is a very good opportunity for businesspeople that are looking to join a big franchise and launch their career very soon.