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DALLAS -- Continuing its plans to transition its company-operated stores to franchises, convenience chain 7-Eleven Inc. is franchising 32 of its 34 Volusia County, Fla., area stores, the Daytona Beach News Journal reported.
The plan allows owner-operators a bigger stake in the business, but still keeps the real estate in the hands of the parent corporation, according to the report. After profits from sales are determined, excluding labor costs, the franchisee and franchisor split the earnings "around 50-50," but can vary based on factors such as the store's overall performance, 7-Eleven spokeswoman, Margaret Chabris, told the paper.
Franchise owners are more committed to a store's success than employee managers, making the stores more profitable for franchisee and franchiser alike, while becoming more involved in their communities and knowing customers better, Chabris said.
"They work harder, have family members work in the store," she said.
About 72 percent of 7-Eleven stores in the U.S. are franchised. In December, 7-Eleven began offering franchises for sale at 76 stores in western Seminole County and all of Volusia and Brevard counties, according to Michael Da Re, 7-Eleven franchise sales manager for Florida. The 76 stores exclude six units in the territory that are being withheld for use as "training stores," short leases or other reasons, Da Re told the paper.
Offers were made to store managers first, than were extended to others in January, Da Re told the paper. Potential buyers are evaluated in a four-month process and the company expects the sale of all its stores in the territory to take as long as four years, the report stated.
Don Hennessy, a 61-year-old manager of a 7-Eleven store in Daytona Beach Shores, Fla., has run 7-Eleven stores for more than six years, and could be the first buyer of a 7-Eleven franchise in the area, according to the report. Hennessy would pay approximately $250,000 in cash for the business located in Port Orange, Fla., the report stated.
It would be a great opportunity to get into a bigger store with a trusted company, and to share the profits of a proven performer more directly, according to Hennessy.
Hennessy expects to recover his 7-Eleven investment within five to seven years, he said. In the meantime, "I will be able to pay myself a salary and drag some profits out of it," he told the News Journal.
Area 7-Elevens for sale:
-- Daytona Beach 12
-- Daytona Beach Shores 3
-- DeLand 2
-- Deltona 2
-- Holly Hill 2
-- New Smyrna Beach 3
-- Ormond Beach 5
-- Orange City 1
-- Ponce Inlet 1
-- Port Orange 2
In other 7-Eleven news, participating stores with Vcom kiosks will be able to offer financial services to Service Credit Union members through the institution's partnership with Financial Service Centers Cooperative, the Foster's Daily Democrat reported.
Participating stores will display the CU Service Centers logo, the report stated. Members can find more information at www.cuswirl.com or www.servicecu.org.
Vcom units are available at more than 1,700 7-Eleven stores across the country, according to the report. Services include check depositing, cash withdrawals, cash loan advances, loan payments by check, transfers within member's credit union accounts, balances and recent transaction history, the report stated. In addition, members will have access to courtesy phones available at all units for assistance, the newspaper reported.