7-Eleven Franchise Owner Salary, Revenue & Failure Rate 2023 (2024)

7-Eleven is one of the biggest names in convenience retail stores, and if you wish to learn about how much does a 7-Eleven franchise owner make, then you are on the right page!

In this guide, we have revealed the investment you will need, the profit that you can make, the payback period, the pros and cons of owning this franchise, etc.

So make sure you do not skip anything.

About 7-Eleven

7-Eleven is a chain of retail convenience stores that was founded by Joe. C Thompson in 1927, in Dallas, Texas.

7-Eleven was called Tote’m Stores earlier, but later they renamed it to 7-Eleven, which reflected the extended hours from 7 am to 11 pm a week.

The concept of a retail store was new at that time. Hence, the company started to grow rapidly and soon started opening franchise stores nationally and internationally.

Today 7-Eleven has made its name in the top 10 best franchises, and it currently has more than 71,000 stores in 17 countries.

If you wish to own a 7-Eleven franchise, then you should know that the franchisor offers candidates three different types of franchise models to choose from: A traditional store, a Business Conversion program, and a Micro market Franchise.

Keep digging in to find out how much investment you will need and how much a 7-Elven franchise owner makes.

((https://franchise.7-eleven.com/franchise/the-brand))

How Much Does A 7-Eleven Franchise Owner Make?

The sales that a 7-Eleven franchise owner makes differ from location to location, day-to-day expenses, operating costs, etc.

However, it is estimated that 7-Eleven franchise owners make $1.4 million in sales each year on average.

Also, the 7-Eleven company made$2.94 Billionin the year 2022, which shows an increase of 4.82% from the previous year’s performance of $2.81 Billion.

How Much Does 7-Eleven Employee Earn?

The salary of a 7-Eleven employee may be different based on their level of experience, department, location, skills, etc.

However, according to Indeed, the average pay for a 7-Eleven employee ranges from$9.79 per hourfor someone working as a Guest Service Agent to$35.99 per hourfor someone working as an Accounting Supervisor.

In yearly terms, the average pay for a 7-Eleven employee ranges from approximately $25,446 per year someone working as a for Retail Sales Associate to $144,914 per year for someone working as a Senior Tax Manager.

Pros & Cons Of 7-Eleven Franchise

Pros Of 7-Eleven Franchise

• Multiple models to choose from.
• Offers 65% financing on their initial franchise fee.
• One of the top-performing convenience store brands.
• Provides support and training.
• Profitable.
• Offers discounts to eligible veterans.

Cons Of 7-Eleven Franchise

• 24/7 business.
• Most of the decisions are taken by franchisors.
• High-cost Investment.

7-Eleven Average Revenue & Profit

As already mentioned 7-Eleven franchise owner makes $365,300 in revenueand if we assume a profit margin of 20% on average, then we can say that they make $73,060 in annual profits.

This is how we calcuated the net profit of 7-Eleven franchise:

Note:The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

The revenue and profit earned can vary depending on the type of franchise model you choose and the amount of investment you make to open your 7-Eleven franchise store.

However, the typical range of profit usually lies between $40,000 – $180,000 a year.

7-Eleven Franchise Failure Rate

There is not enough data available to determine the total number of 7-Eleven Franchise outlets that opened and closed in the last three years to determine its failure rate.

However, we compiled the data from 2012-2014 to understand the trend of the failure rate of the company.

Franchised Outlets:

For theFranchisedoutlets:

• In 2012, the growth rate was (432)/5438×100≈7.94%
• In 2013, the growth rate was (349)/5870×100≈5.94%
• In 2014, the growth rate was (171)/6219×100≈2.74%

Company-Owned Outlets:

For theCompany-Ownedoutlets:

• In 2012, the growth rate was (469)/1063×100≈44.12%
• In 2013, the growth rate was (55)/1532×100≈3.59%
• In 2014, the failure rate was (174)/1587×100≈10.96%

Total Outlets:

ForTotaloutlets:

• In 2012, the growth rate was (901)/6501×100≈13.85%
• In 2013, the growth rate was (404)/7402×100≈5.45%
• In 2014, the failure rate was (3)/7806×100≈0.038%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for 7-Eleven grew from 2012-2014, showing a growth rate between 7.94% and 2.74%.

On the other hand, for company-owned outlets, the growth rate of 7-Eleven was lying in the range between 44.12% and 3.59% for the same period of time. The company then started declining in 2014, showing a failure rate of 10.96%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the 7-Eleven franchise has expanded in the years 2012-2013 showing a total growth rate between 13.85% and 5.45%. And the failure rate in the year 2014 was 0.038%.

7-Eleven Franchise Payback Period

To find out the payback period of the 7-Eleven Franchise, let us do some calculations:

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 608300/73060 = 8.3 = 8 based on median

The average investment for a 7-Eleven Franchise is $608,300.

With an average profit percentage of 20%, the average profit per year is $73,060.

This means that the average payback period for a 7-Eleven Franchise is8 years, and the total investment of $608,300 would be recouped within this period.

7-Eleven Might Be The Hardest Franchise To Get

It is not quite easy to be eligible to own a 7-Eleven franchise. Here are all the qualification you must meet in order to get this franchise.

• Willingness to open Multi-unit franchising.
• 5-10 years of experience in managing multi-unit businesses.
• Have a U.S. citizenship or permanent residency.
• Not have any other business.
• Pass a background check.

Financial requirements:

• Have a minimum net worth of$150,000.
• Have minimum liquid capital of$50,000to$250,000.
• Investment of$53,600 – $1,163,000.

Facts About 7-Eleven

• Initially 7-Eleven didn’t plan on remaining open 24×7, but one night they saw a rush of university students and had to extend hours that day, which led them to come up with the idea of remaining open 24×7.
• 7-Eleven is one of the largest and leading franchise companies in the world.
• The famous Slurpee was actually invented accidentally at Dairy Queen.
• 7-Eleven has been giving free Slurpees since 2002 on the occasion of its birthday.
• Once, a 6-foot lizard visited the 7-Eleven store near Bangkok.
• Winnipeg, Canada, has been the Slurpee capital of the world for 20 years now.
• 7-Eleven menus are slightly different in different parts of the world.
• 7-Eleven was initially known as Tote’m.
• There are twice as many 7-Eleven stores in the world as McDonald’s.
• 7-Eleven is the first convenience store to remain open for 24 hours.
• The term ‘Brain Freeze’ was invented by 7-Eleven.
• 7-Eleven has quite a few private brand wines.
• It sells over 1 million cups of coffee each day.
• IRS partnered with 7-Eleven in recent years, so you can pay taxes in cash at 7-Eleven.

((https://www.eatthis.com/secrets-about-7-eleven/))

What Is 7-Eleven Best Known For?

7-Eleven is a convenience store that is known for offering various products like baked goods, snacks, on-the-go hot meals, Slurpees, and so on.

It is a kind of retail store; where you will find all the basic items that are used in our daily lives.

They also offer e-service, home delivery, and bill payment facilities for their customers and are focused on providing high-quality services.

Is 7-Eleven Franchise Profitable?

Usually, convenience stores are profitable business ventures, and 7-Eleven happens to be one of the most successful and well-known convenience store franchises in the world.

So is the 7-Eleven franchise profitable? Yes, it is profitable, and franchise owners can expect to make $75,000 annually on average.

However, the profitability varies based on the kind of franchise model you choose, your initial investment amount, etc. So do not forget to calculate and consider all these factors.

7-Eleven Franchise Earning Potential

7-Eleven has good earning potential. Franchise owners can make as much as $125,000 in net profits a year.

However, because of the high cost of investment, you might have to wait for 8 years on average to recover your initial investment amount, and only then will you be able to enjoy larger parts of the profit earned.

Wrap Up

After looking at the franchise details of the 7-Eleven franchise, this is what we can conclude.

7-Eleven requires a high cost of investment, but since the company offers financing opportunities, this could be of great help to you.

This franchise is profitable, but the average payback period is 8 years, which is a lot. Also, you should be willing to open multi-unit franchises to be eligible, among other things.

So it is upto you if you think this franchise is suitable for you or not.

Frequently Asked Question

Amit Gupta

Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.