As of7-Eleven had stores in Hong Kong, of which were operated by franchisees. All 7-Eleven stores in Hong Kong accept the ubiquitous Octopus card as a method of payment. The chain's 84 shops, located mainly in MTR and Kowloon—Canton Railway stations as well as shopping centres and housing estateswere converted to 7-Eleven stores. Indonesia[ edit ] In7-Eleven announced plans to expand its business in Indonesia through a master franchise agreement with Modern Sevel Indonesia and Media Nusantara Citra.
Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors, who retained a percentage of the money they collected and turned the rest over.
There was little growth in franchising, though, until the midth century, when it appeared in the United States for the first time. One of the first successful American franchising operations was started by an enterprising druggist named John S.
Inhe concocted a beverage comprising sugar, molasses, spices, and cocaine. Pemberton licensed selected people to bottle and sell the drink, which was an early version of what is now known as Coca-Cola.
His was one of the earliest—and most successful—franchising operations in the United States. The Singer Company implemented a franchising plan in the s to distribute its sewing machines. The operation failed, though, because the company did not earn much money even though the machines sold well.
The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts. Some failed to push Singer products, so competitors were able to outsell the company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives.
So, the company started repurchasing the rights it had sold. The experiment proved to be a failure.
That may have been one of the first times a franchisor failed, but it was by no means the last. Still, the Singer venture did not put an end to franchising. Other companies tried franchising in one form or another after the Singer experience.
For example, several decades later, General Motors Corporation established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern franchising, though, is Louis K.
InLiggett invited a group of druggists to join a "drug cooperative. His idea was to market private label products. Sales soared, and Rexall became a franchisor. The chain's success set a pattern for other franchisors to follow.
Although many business owners did affiliate with cooperative ventures of one type or another, there was little growth in franchising until the early 20th century, and what franchising there was did not take the same form as it does today.
As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products.
The franchisees did little more than sell the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to any great extent. Consequently, franchising was not a growth industry in the United States. It was not until the s and s that people began to take a close look at the attractiveness of franchising.
The concept intrigued people with entrepreneurial spirit. However, there were serious pitfalls for investors, which almost ended the practice before it became truly popular. This amounts to 11 million jobs, and 4.
There are also large franchises like hotels, spas and hospitals, which are discussed further under technological alliances. Fees and contract arrangement[ edit ] Three important payments are made to a franchisor: These three fees may be combined in a single 'management' fee.
A fee for "disclosure" is separate and is always a "front-end fee". A franchise usually lasts for a fixed time period broken down into shorter periods, which each require renewaland serves a specific territory or geographical area surrounding its location.
One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees.
A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership.
It is classified as a wasting asset due to the finite term of the license. Franchise fees are on average 6. A franchise can be exclusive, non-exclusive or "sole and exclusive".
Although franchisor revenues and profit may be listed in a franchise disclosure document FDDno laws require an estimate of franchisee profitability, which depends on how intensively the franchisee "works" the franchise.
Therefore, franchisor fees are typically based on "gross revenue from sales" and not on profits realized.Franchising has been around for a while – most likely because it’s a system that’s been successful.
It works when an individual or group (the franchisee) establishes a relationship with a business (the franchisor) to help grow that business and distribute its product.
The franchisee pays a. Learn more about franchise opportunities from H&R Block. Read more about H&R Block franchise benefits, financing options, and get the support you need to become a business owner. The financing you need to make it all work for you.
Financing options are also available at 7‑Eleven. As a qualified candidate, you can get up to 65 percent financing toward your initial franchise fee or a business line of credit. How to Franchise 7-Eleven: Total Investment Costs. The total investment to starting a 7-Eleven Franchise is Million pesos, including the franchise fee.
Take a quick look at what your journey to 7‑Eleven franchise ownership looks like. Step 1. Past business ownership experience (multi-unit ownership and/or franchise business ownership preferred) the application process is easy.
Our 7‑Eleven team will review the information you submit, along with your credit report. If everything. 7-Eleven Business Plan. Writing a 7-Eleven business plan can be more difficult than creating your standard business plan.
That is because 7-Eleven requires that your business plan seeking a franchise location follow a very specific format.