7-Eleven Named One of Top Starter Franchises
NEW YORK -- Convenience store chain 7-Eleven Inc. placed third on Forbes Top 20 Franchises to Start, a list of the best business concepts for aspiring entrepreneurs to consider.
"Many people don't have the stomach to be an entrepreneur," Robert Bond, publisher of Bond's Franchising Guides and chief executive of the World Franchising Network (WFN), a franchise database, said in the report. "Franchising isn't doing it completely on your own. It's buying initial training and ongoing support to stay abreast of what's going on."
Forbes and Bond's compared 400 franchises that require less than $100,000 to open a new location, have been in business for at least five years and are opening new units now. From that group, the top 20 were selected based on a weighted formula.
At No. 1 is math and reading tutelage provider Kumon North America, based in Teaneck, N.J., with 1,282 franchisees. New franchisees pay $1,000 in initial fees,
7-Eleven, at No. 3, was noted for its relatively small initial fee of $31,000 for a location, compared to other national brands such as McDonald's, which requires a $45,000 fee and requires new franchisees have $300,000 in cash or liquid securities as a cushion, according to the report. Forbes also noted the convenience store retailer's strength of 4,330 current locations, a 1,000-strong support staff, and only 175 closures over the last five years, the report stated.
The methodology took into account four variables: initial franchise fee; total locations; survival rates; and the ratio of the number of corporate support staffers to the total number of locations.
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"Many people don't have the stomach to be an entrepreneur," Robert Bond, publisher of Bond's Franchising Guides and chief executive of the World Franchising Network (WFN), a franchise database, said in the report. "Franchising isn't doing it completely on your own. It's buying initial training and ongoing support to stay abreast of what's going on."
Forbes and Bond's compared 400 franchises that require less than $100,000 to open a new location, have been in business for at least five years and are opening new units now. From that group, the top 20 were selected based on a weighted formula.
At No. 1 is math and reading tutelage provider Kumon North America, based in Teaneck, N.J., with 1,282 franchisees. New franchisees pay $1,000 in initial fees,
7-Eleven, at No. 3, was noted for its relatively small initial fee of $31,000 for a location, compared to other national brands such as McDonald's, which requires a $45,000 fee and requires new franchisees have $300,000 in cash or liquid securities as a cushion, according to the report. Forbes also noted the convenience store retailer's strength of 4,330 current locations, a 1,000-strong support staff, and only 175 closures over the last five years, the report stated.
The methodology took into account four variables: initial franchise fee; total locations; survival rates; and the ratio of the number of corporate support staffers to the total number of locations.
Related News:
7-Eleven Stores Turn Over a New Leaf
7-Eleven CEO Appears in Ads for Army Recruits