7-Eleven Franchise Agreement in the Philippines: A Comprehensive Guide
7-Eleven is a leading convenience store brand in the Philippines, with over 3,000 stores across the country. The company has been in the Philippines for almost four decades and has established itself as a trusted brand in the retail industry. If you are considering franchising with 7-Eleven in the Philippines, it is important to understand the franchise agreement and its terms and conditions.
In this article, we will provide a comprehensive guide on the 7-Eleven franchise agreement in the Philippines.
1. Eligibility Requirements
To qualify for a 7-Eleven franchise, you must meet the following eligibility requirements:
– Must be a Filipino citizen or a Filipino corporation
– Must have a minimum net worth of Php5 million
– Must have a liquid asset of Php3 million
– Must have a minimum of three years of retail or business experience
2. Franchise Fee
The franchise fee for a 7-Eleven store in the Philippines is Php600,000. This fee covers the license to use the 7-Eleven trademark and brand, site evaluation, store design, construction, equipment, and initial inventory.
3. Royalty Fee
The royalty fee for a 7-Eleven store in the Philippines is 9% of the gross profit. This fee covers ongoing support and training, product development, brand marketing, and advertising.
4. Term of the Franchise Agreement
The franchise agreement for a 7-Eleven store in the Philippines is valid for ten years and is renewable for another ten years.
5. Store Ownership
7-Eleven requires that franchisees own and operate their stores. Franchisees are not allowed to lease or sublet their stores to third parties.
6. Training and Support
7-Eleven provides comprehensive training and support to franchisees, including:
– New store owner training
– Operations training
– Marketing and advertising support
– Ongoing training and development
7. Site Selection and Evaluation
7-Eleven conducts thorough site evaluation before approving a location for a new store. The company considers factors such as population density, foot traffic, and competition in the area.
In conclusion, franchising with 7-Eleven in the Philippines can be a profitable business venture for entrepreneurs who meet the eligibility requirements and are willing to invest in the franchise fee and ongoing royalty fee. The company provides extensive training and support to ensure that franchisees are equipped with the knowledge and skills necessary to succeed in the retail industry. It is important to carefully review and understand the terms and conditions of the franchise agreement before signing.