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NEW YORK -- Being your own boss is just about every worker's dream and a good avenue to make that a reality is through franchising. 7-Eleven has just been named among the best franchise opportunities.
Forbes magazine joined with Robert Bond, chief executive of the World Franchising Network and publisher of the Bond's Franchise Guide, to comb through data on 110 of the most established franchise names and select the 20 that deliver the "biggest bang for a competent operator's investment buck." 7-Eleven, the Dallas-based convenience store giant, landed at No. 2 on the "Top 20 Franchises for the Buck" list.
The methodology was based on five variables: average initial investment (franchise fees plus equipment costs); total locations (the more the better); closure rate (the number of closings in the last three reported fiscal years divided by the total number of existing locations); growth in the number of U.S. outlets in the last three years; and the number of training hours as a percentage of startup costs (the more support from the home office, the better). Overall footprint and survival rates carried the most weight, but the news outlet did not include royalties paid to franchisors because they ranged in a tight band and thus barely affected the overall rankings.
According to the results, 7-Eleven is the largest franchiser (by outlets) in the world. In addition, U.S. military veterans get a 10-percent discount on the initial franchise fee. By the numbers, the average initial investment is $393,800. As of Dec. 31, 2010, there were 6,142 U.S. 7-Eleven locations with 90 closings in the last three fiscal years. The hours of training offered stood at 304.