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"The company’s 2017 disclosure documents give the example of a store in Chicago with $1 million in annual sales. After all the fees and costs and taking into ac
by blakesterz 8y ago
"The company’s 2017 disclosure documents give the example of a store in Chicago with $1 million in annual sales. After all the fees and costs and taking into account that the company’s share of the take rises as revenue increases, the franchise owner took home $37,000 before taxes. “7-Eleven always sold its franchises as a gold mine,” says Hashim Syed, a former 7-Eleven franchisee and ex-president of the Chicago franchisee-owners association. “I say it’s more like a coal mine.”"
That sounds brutal!
- jefftk 8y ago$37k to the owner on $1M in revenue would be a profit margin of 3.7%. This looks higher than the average profit of ~2%. The $1M sales figure doesn't include the cost of what they're selling, their rent, or wages for their workers. [1] https://retailowner.com/Benchmarks/Food-and-Beverage-Stores/Convenience-Stores#ixzz3PiMI3QNo https://retailowner.com/Benchmarks/Food-and-Beverage-Stores/...
- lostmsu 8y agoIt does not until you know the operating margins. Why did not they name company's share of profits explicitly?
- winningcontinue 8y agoThat is brutal for all the stress & hours a franchise owner would have to work themselves to make the store profitable. I wonder who handles the money losing promotions financially, the corporate or small business owner?