Risk Score
Pending analysis
Investment Range
$142,150 - $1,627,710
Min Cash Required
$60,000
Total US Locations
8,254
Business Summary
7-Eleven operates extended-hour retail convenience stores under the tradename and service mark "7-Eleven®". These stores sell a broad array of products, including high-quality fresh food, hot food, proprietary beverage offerings, and private brand items. 7-Eleven stores generally operate every day of the year, usually 24 hours a day, in easily accessible locations like neighborhood areas, main thoroughfares, and shopping centers.
Corporate History
7-Eleven introduced the convenience store concept in 1927 when, as an ice company, its retail outlets began selling milk, bread, and eggs. The company was formally incorporated in Texas in 1961. 7-Eleven has operated its retail convenience stores under the service mark 7-Eleven® since 1946 and began offering franchises for 7-Eleven stores in 1964. Initially, all stores were corporate-owned until 1964 when a chain of 126 franchised stores in California was acquired. As of December 31, 2024, 7-Eleven also operated 3,801 other convenience store locations primarily under the "Speedway" and "Stripes" brands, some of which may be converted to 7-Eleven stores and franchised in the future. 7-Eleven's ultimate parent is Seven and i Holdings Co. Ltd. from Japan.
Financial Overview
Investment Range
$142,150 - $1,627,710
Franchise Fee (High)
$690,000
Minimum Cash Required
$60,000
Minimum Net Worth
$5,000
Royalty %
45%
Marketing %
1%
Working Capital
$120,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
7-Eleven, Inc. maintains a strong financial position, evidenced by an unqualified audit opinion for its consolidated financial statements. However, in July 2024, 7-Eleven recorded significant impairment and write-off expenses totaling $375 million. This was due to strategic plans to close or convert approximately 440 underperforming retail locations. The company also manages substantial debt and various contractual commitments, including distribution, IT, and fuel supply agreements. Additionally, 7-Eleven is currently defending against an FTC lawsuit that could result in a civil penalty of up to $77.5 million related to a prior acquisition. The company has environmental liabilities accrued for remediation activities at fuel stores, offset by probable state reimbursements.
Financing Details
7-Eleven may offer financing for a portion of the Franchise Fee and the Down Payment to qualified applicants who demonstrate a financial need. The Franchise Fee, if financed, is repayable in up to 60 monthly installments, with interest charged at an annual rate specified in a Promissory Note, which for March 2025 to February 2026 is 9.50%. 7-Eleven also finances any unpaid balances in a franchisee's Open Account, which is established to manage payments for inventory, operating expenses, and other amounts owed to 7-Eleven, with interest accruing monthly at a rate of 2% over the prime rate (9.50% for March 2025 to February 2026). This financing is secured by a security interest in the store's equipment, fixtures, inventory, sales receipts, and goodwill. Franchisees can prepay the financing without penalty, and principals of entity franchisees must personally guarantee the repayment.
Performance Metrics
Total US Locations
8,254
Franchised Units
7,229
Corporate Units
1,025
Franchising Since
1964
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
33
Litigation Summary
7-Eleven has a significant number of ongoing and recently concluded legal actions. As of April 1, 2025, there are 11 pending lawsuits against 7-Eleven. These cases include franchisees alleging wrongful termination, breach of contract, fraud, misclassification as independent contractors, or retaliatory actions by 7-Eleven. For example, in 2025, a franchisee claimed 7-Eleven delayed renovations, sent improper inventory, and coerced them into an agreement, alleging fraud and breach of contract. Other pending cases from 2023-2024 involve franchisees disputing termination for issues like fraudulent tobacco transactions, non-compliance, and alleged misclassification as employees. 7-Eleven has also initiated lawsuits against former franchisees for trademark infringement and failure to comply with post-termination obligations. Additionally, 7-Eleven faced a governmental action from the Federal Trade Commission in 2023 for allegedly violating a consent order by acquiring a fuel outlet without prior notice, with the FTC seeking a civil penalty of up to $77.5 million. One recent case concluded in February 2025 involved 7-Eleven settling with a former franchisee for $325,000 in a dispute over financial performance representations and wrongful termination.
Bankruptcy History
7-Eleven has no bankruptcy history required to be disclosed.
Agreement Terms
Initial Term
15 years
Renewal Conditions
To renew their 7-Eleven franchise agreement, franchisees must provide written notice 9 to 12 months before expiration, ensure their store is in compliance with 7-Eleven Foodservice Standards, and have maintained the minimum Net Worth for the year prior to expiration. They must also not be in material default, pay all money owed, complete any required additional training, and not have received four or more default notices in the two years preceding expiration. Additionally, 7-Eleven must decide to keep the store open, and the law must permit renewal. Franchisees are required to complete a review of their store operations, meet 7-Eleven's then-current qualification and financial requirements for new franchisees, and pay a renewal fee of $50,000. They must also sign 7-Eleven's then-current renewal franchise agreement and a mutual termination and general release of claims.
Training & Support Program
Franchisor Assistance
7-Eleven provides extensive assistance to its franchisees. Before opening, 7-Eleven designates the store location, provides all necessary equipment, fixtures, initial inventory, and supplies, and helps with obtaining licenses and permits. Franchisees receive a mandatory initial training program. During operation, 7-Eleven offers merchandising assistance, administers advertising for the 7-Eleven system, and covers fire and casualty losses for the store building and 7-Eleven equipment. The company also maintains certain store elements like repainting, major repairs (roof, foundation), utilities (except main phone line), and HVAC equipment. 7-Eleven provides bookkeeping services, access to a comprehensive Operations Manual, and continuous business advice through regular visits from area leaders. Franchisees also receive support for the proprietary 7-Eleven Store Information System (SIS) and digital technology, including upgrades and updates.
Initial Training Hours
300
Training Location
Store Support Center in Irving, TX and in a 7-Eleven Training store
Ongoing Support
7-Eleven provides ongoing support to its franchisees through various channels. Area leaders regularly visit stores to review operations and offer strategic recommendations. The company provides bookkeeping services and access to the 7-Eleven Operations Manual on its Intranet, which contains mandatory and suggested operating standards and procedures. 7-Eleven also offers ongoing upgrades and updates to its proprietary Store Information System (SIS) hardware and software, automating many store functions and providing access to item-by-item sales information. Furthermore, 7-Eleven offers additional training programs for franchisees and their employees, especially regarding age-restricted product sales or changes in the 7-Eleven System. The company also administers the advertising fund and is responsible for major maintenance items like repainting, equipment replacement, and HVAC maintenance.
Franchise Requirements
Ideal Candidate Profile
7-Eleven seeks franchisees who are committed to actively and substantially participating in the day-to-day operation of their convenience store. Ideal candidates are expected to devote their best efforts to the business and provide full-time supervision, as 7-Eleven believes this is essential for success. Franchisees must be proficient in English and committed to providing excellent, prompt, efficient, and courteous customer service. They need to be willing to comply with the 7-Eleven system's uniform operating standards and training requirements. If married, 7-Eleven prefers that both spouses actively participate. For entity franchisees, the designated Managing Principals must also actively participate and assume full management authority. Financial qualifications and successful completion of the initial training program are mandatory.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
The 7-Eleven franchise agreement covers a single store location, specifically identified by its street address. 7-Eleven franchisees do not receive any minimum or exclusive territory. 7-Eleven, Inc. retains the right to establish and operate, or grant others the right to establish and operate, other 7-Eleven stores or competitive brands at any site, including those next to or near the franchisee's location. 7-Eleven also reserves the right to offer and sell products and services through any other channel or method of distribution, such as the Internet, even if they are similar to those offered by the franchisee.
Staffing Notes
7-Eleven franchisees are solely responsible for ensuring their store employees are adequately trained in store operations and customer service according to the 7-Eleven System and franchise agreement. This includes training on the proper sale of age-restricted products and other regulated items. Franchisees must comply with all labor, wage, hour, and employment laws, including verifying employee eligibility to work in the United States through electronic verification systems. While 7-Eleven typically does not require a designated manager for single-unit franchisees, multi-unit franchisees must designate a manager for each additional store, and these managers must successfully complete the initial training program. Franchisees are also required to obtain agreements from their managers not to disclose confidential information.