7-Eleven franchise package targets budding entrepreneurs and early retirees
Philippine Seven Corp., the innovative licensor of world-renowned 7-Eleven, once again re-invents the franchising system that opens the door for early retirees and budding entrepreneurs and take part in the highly successful 24-hour convenience store business.
Dubbed the Service Agreement (SA) system, the revamped scheme introduces a more affordable way for interested franchisees to become part of the 7-Eleven family.
“With the Service Agreement, the operator functions as a store manager, overseeing the day-to-day operations of the store, aside from having a stake in the success of the business,” said Aimee Lim, PSC Franchise Division public relations spokesperson.
Lim explained that the investment requirement of the Service Agreement system ranges from a low of P700,000 to about P1.5 million, depending on the store’s historical performance. This makes the franchise option less costly than PSC’s full franchise packages, along with the advantage of acquiring a store that already has a historical track record of sales and performance.
“The Service Agreement model is more affordable since they only have to shell out a fraction of the cost of a full franchise, but they still get to operate a world-class brand coupled with support systems that made PSC number one in the convenience store industry for 25 years” Lim added.
Under the Service Agreement, franchisees will get almost 40 percent share of the profit with the rest of the pie going to PSC. Cost of store operations will also be shared between the two parties, with PSC handling merchandise cost, 60 percent of electricity and the monthly rent of the store while the franchisee takes care of operating expenses; which includes salary and wages, repairs and maintenance and inventory variations. The new system also features 5-year renewable contract duration for the franchise investment.
Lim also revealed that although the revamped Service Agreement system was opened to the public only this year, early retirees of PSC had already been availing of the franchise option since 2003.
“The Service Agreement made it possible for me to operate my own store with the money I received from my retirement. And I was able to make my money grow faster compared to just putting it in a bank, plus I am able to dictate the pace of its growth by ensuring that my SA store operates at maximum efficiency,” said Flora Dabu, one of the PSC retirees to avail of the new franchise system.
And just like regular franchisees, Service Agreement store operators will also get to enjoy full support from PSC’s Convenience Distribution Incorporated, the company’s centralized distribution system, as well as current brand building efforts, in-store improvements, store promotions, improved in-store media and product displays.
“The revamped Service Agreement allows us to welcome even more people into the highly successful 7-Eleven franchise family. And with retirees coming onboard to become our new partner SA operators, we can now proudly say that there truly is a future after retirement with 7-Eleven,” stated Lim.
With the entry of the Service Agreement franchise, the total franchise options offered by PSC has risen to four, which includes the regular new store franchise; the franchise conversion system, wherein businessmen can avail of a previously company-owned store converted into a franchise store; and the Property Conversion system, wherein entrepreneurs who opt to convert existing businesses or properties into a 7-Eleven franchise.
7-Eleven is available for franchise in the areas of La Union,
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