Convenience store 7-Eleven Malaysia (SEM) has rolled out its latest franchising package, now offering local entrepreneurs to become partners in managing its outlets. It requires only RM250,000 in investment from franchisees willing to operate and manage these stores on a full-time basis.
According to Ho Meng, acting CEO, 7-Eleven Malaysia, the RM250,000 outlay included a non-refundable initial franchise fee and refundable deposit for stocks as a security measure in which the prospective franchisee would eventually get back. This acts as an assurance that the new franchisee would comply with the franchisee’s obligations and performance.
As 7-Eleven is a 24-hour, seven-day a week retailer, aspiring franchisees are required to be able to commit full-time in managing the business. According to the brand,
The programme will be especially suited for unemployed graduates and strong entrepreneur minded Millennials.
Franchisees will thus be able to gain an invaluable hands-on learning experience in managing an own business.
In a press statement, Tan Sri Vincent Tan, founder, Berjaya Group urges all fresh graduates to consider managing their own business and being a franchisee of 7-Eleven Malaysia as it has “a proven track record business”. He also said that achieving success is not difficult as long as one is willing to work hard and put in long hours.
“Once a franchisee has learned to manage a store well and is successful, they will be viewed favourably to operate more stores so eventually one can be a multi-store operator thus generating more revenue for oneself,” Tan added.
This year, SEM plans to invest RM70 million to open around 200 new stores and renovate existing stores. The company ended last year with 2,225 stores, with less than 10% as franchised. As such, there are many existing stores with potential for aspiring franchisees to operate their own business, the press statement read.
“This programme is meant to address aspiring entrepreneurs, and also support efforts towards financial independence and the idea of giving opportunities to people with desire, skills and willingness to work hard,” Ho Meng said.
He also added that the franchise model is based on profit-sharing whereby SEM is responsible for expenses such as leasing of real estate, store equipment, general insurance and marketing services among others as well as providing full training and operational consultation support. Thus, franchisees are able to minimise the risks associated with operating alone and incurring even more prohibitive capital outlay.
“As franchisees are responsible for those direct store operating expenses like labour cost, cash and inventory shortages, and other direct operating expenses that are controllable by them, franchisees will benefit more if they manage the businesses well,” Ho Meng said.
SEM believes that when franchisees are actively involved in running their stores, revenues per store will be higher, in turn boosting overall profitability for both the franchisees and the convenience store chain. Moving forward, SEM would be focusing more on growing same store sales by improving its products and services through innovation and insights, while continuing to grow its store network.