7-Eleven Malaysia (SEM) is now offering back its franchise programme for local entrepreneurs to become partners in managing its outlets.
SEM is offering its franchising package that requires only RM250,000 in investments from franchisees willing to operate and manage these stores on a full-time basis.
With this latest launch, SEM seeks suitable franchisee candidates that are looking for an exciting business opportunity that’s full of growth potential.
As 7-Eleven is a 24-hour, seven days a week retailer, aspiring franchisees need to be able to commit full time in managing their business.
In a statement, SEM suggested that the programme is mainly suited for unemployed graduates and strong entrepreneur minded millennials as one gets a hands-on learning experience in managing their own business.
“All fresh graduates should consider managing their own business and being a franchisee of 7-Eleven Malaysia as it has a proven track record business and achieving success is not difficult provided 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.
“There are a lot of financing options available to interested franchisees from various government agencies and one must take advantage of this and strive to fulfil one’s entrepreneurial spirit and desire,” said Tan Sri Vincent Tan, Berjaya Group founder.
This year, SEM plans to invest RM70 million to open around 200 new stores and renovate other stores.
The company ended last year with 2,225 stores of which less than 10 per cent are franchised.
As such, there are many existing stores that are suitable for potential franchisees to operate their own businesses and to earn more as they strive to grow sales.
“This programme is meant to address aspiring entrepreneurs, adding that this was also to support efforts towards financial independence and the idea of giving opportunities to people with desire, skills and willingness to work hard,” said Ho Meng, acting chief executive officer of 7-Eleven Malaysia.
Ho said that the RM250,000 outlay included a non-refundable initial franchise fee and refundable deposits for stocks and as security that the prospective franchisee would eventually get back.
“It’s just an assurance that the new franchisee would comply with the franchisee’s obligations and performance,” he noted.
“Our franchise model is based on profit-sharing whereby SEM is responsible for expenses such as leasing of real estate, store equipment, general insurance, inventory audit, merchandising and marketing services among others as well as providing full training and operational consultation support and as such, franchisees minimises the risks associated with going it 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, they will benefit more if they manage the businesses well,” he concluded.
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 this convenience store chain.
Moving forward, SEM would focus more on growing same store sales by improving its products and services through innovation and insights, while continuing to grow its store network.