How Much To Franchise in 7-Eleven

Last November 24, 2011, I received an e-mail from "Herbs Ibrahim" asking how much to franchise in 7-Eleven.

Well before I even received his letter, I already inquired to 7-Eleven how to franchise a 7-Eleven store and how much is the cost. This is in relation to the article I read in Manila Bulletin dated November 21, 2011.

7-Eleven is swift and has been very cordial to my request. Just to set the records straight, I am not affiliated in anyway whatsoever with 7-Eleven. You can visit their website http://www.7-eleven.com.ph/ for more info.

For a new store franchise, investment costs around 3.5M - 4.5M inclusive of construction cost, initial merchandise, franchise fee, store supplies and advance rent
and deposit.

For Service Agreement, total investment would be around 1M - 2M depending on
the sales of these existing stores.

You can check the detailed breakdown of the investment here, 7-Eleven.

Here is a part of the e-mail I received from their PR.

Our special OFW package offers qualified applicants a discount on franchise fees. Kindly refer to the attached summary of our franchise packages. You may also have a representative to attend our regular Franchise Briefing every Mon and Thurs at 10 AM and 2 PM, to know more about our franchise packages. We are located at the 7th floor, Columbia Tower, Ortigas Ave., Mandaluyong near POEA.
Our franchise offer is basically 2 packages:

(1) Applying for a NEW STORE FRANCHISE (code: FC1) -

As PSC continually expands in Manila and metro provinces around the
country, our franchise applicants are simultaneously offered these new
sites as potential locations for their franchise business. Even if you
have a preferred location, PSC will evaluate your site together with
your application (area would be ranging from 80-120 sqm). Total
investment would be around 3.5M - 4.5M inclusive of construction cost,
initial merchandise, franchise fee, store supplies and advance rent
and deposit.

(2) Applying under a MANAGEMENT AGREEMENT (Code: SA) -

Service Agreement, puts the operator in the front seat of the business
by allowing him to directly run the store as the designated Store
Manager. SA stores are our corporate stores that we award to
franchisees Total investment would be around 1M - 2M depending on
the sales of these existing stores.

Inclusive to the franchise terms of each of the above packages are the
use of 7-Eleven proprietary brands, use of 7-Eleven operations,
equipment and merchandise systems, a comprehensive 4 to 8
week training, involvement in national advertising and
promotions, start-up and bookkeeping assistance, and weekly visits by
our field consultants.

Presently our expansion and existing network of stores are
concentrated in island of Luzon covering Baguio, Pampanga, Bulacan, the
National Capitol Region, Cavite, Laguna, Batangas, Lucena down to
Bicol province.

**Timing would take a minimum of 90 up to 180 days for the entire franchise process.

7-Eleven launches OFW investment program

Source: Manila Bulletin

MANILA, Philippines — Returning overseas Filipino workers who yearn for long-term financial growth in their homeland now have the chance to finance their own small business investment and become successful entrepreneurs as world-renowned convenience store chain giant 7-Eleven launches a special franchise program for OFW applicants.

The special program, according to Francis Medina, Business Development Manager of Philippine Seven Corp. (PSC), allows OFWs to explore their own income-generating business option by using their remittances as significant “investment tools.”

“Studies have shown that OFWs nowadays no longer concentrate their remittances solely for their families’ basic consumption; in fact, most have used or saved up their remittances to finance other future pre-needs or necessities such as education, housing or land properties, health and small private businesses,” he noted.

“And with the population of migrant Filipino workers growing at 5% per year as they spread across various continents in the globe, imagine the overall buffering effect to the country’s economy, more importantly to the improvement of the quality of life of OFWs and their families, if their earnings or savings are channeled to finance potentially lucrative alternative business ventures such as a viable convenience store franchise,” said Medina.

Apart from the rewarding aspects of owning their own 7-Eleven franchise, like finally achieving a steady income or livelihood for them and their loved ones, Medina said that investing their earnings on a viable franchise investment option is one great way of helping the country spur local economic development and generate jobs back home.

“By becoming 7-Eleven franchisees through a special franchise program that is unique and proven reliable, OFWs can look forward to a brighter and stable future as the company will arm them with the necessary technical support, financial management, including knowledge and skills training for them to fully understand the trade as they make a successful career in entrepreneurship,” he added.
Medina noted that because OFWs are hardworking, resourceful, compliant, reliable and service-oriented, they make excellent candidates for the 7-Eleven business model just like their successful operators. He also added that because of these qualities, along with their flexibility, commitment, discipline, work ethics and sense of responsibility, OFW partners are sure to propel the growth of the franchise business.
“Being a 7-Eleven franchisee is an ideal way for OFWs to build their future right in their homeland. By investing their hard-earned money on a proven brand that works as hard as they do, they can be sure of a mutual partnership that works towards the achievement of a better, more secure future for themselves and their loved ones,” said Medina.

There is Wealth in Garbage

Have you read in a broadsheet about banks selling their foreclosed properties? What did you feel? You know my first feeling about this is, “who the hell cared about it!” I immediately flipped onto the next page and see the latest news in sports. If there are properties I normally looked at the classified sections of broadsheets are the rooms for rent or bed spaces. Those are the classified ads I can afford. Forget about the condos for sale or for rent, the apartments for sale or for rent, the townhouses for sale or for rent, the houses for sale or for rent and the land for sale or for rent. Forget about them because all could afford in buying a real estate in my 25,000 pesos salary is a bed space or even a small room if the landlord will give in to my plea of giving me a discount on rent. You see, I am not even in the buying level. I’m still in the renting level and in the renting level, all I could afford is a bed space or room for rent. Oftentimes, I feel pathetic. I feel sorry about myself. All I could muster when checking the classifieds section is how in the world I can buy those properties. Perhaps not in my lifetime, I guess.

Two years have passed and I bought my first real estate. It’s a small land in our province covered with lahar. Yes, my first real estate investment is a lahar covered agriculture land. It’s a deserted land who perhaps the only plants I can put on is sugarcane. Well, actually you can plant other trees and vegetables as well but in that area, the common plant being cultivated is sugarcane. Thus, we planted it with sugarcane and my father managed it. Every year, it is giving around 80,000 pesos in extra money to us.

How I was able to purchase my first real estate? My salary is only 25,000 and I have a small savings around 20,000.

The Opportunity

·         When our province was ravaged by lahar, the value of the land is almost zero. Yes, it’s almost worthless that some owners are selling it for 10 pesos per square meter. Since most of the livelihoods of the people were destroyed already, the people moved in to the resettlement area where concrete houses were provided by the government. In need of cash and nobody seems to care whether the town will ever get up again, some people tried to raise cash by selling whatever is left in their properties. And those properties include vast hectares of lands.

·         Everyone is down and nobody wants to buy the lands. Who in the world would buy a land covered with lahar? Nobody knows when will Mt. Pinatubo strikes again. It will be a crazy decision on those days.

There is Wealth in Garbage

·         I remember the chairman of the board of the Company I worked before. He said that there is wealth in trash, or in garbage. He is actually referring to the current location of our Company. In that place erects a two storey building filled with a number of companies. The environment was conducive to work and the building is a great place to rest as well.

·         A few years ago, the land of which our company is located is a garbage filled land. Flies are all over the place and the place is covered with bad smell. Dirty little water passages behind are not good to the eyes. I myself also would not dare live there! It’s just a filthy, bad smelling place with rotten leftovers from all city’s waste. But look at it now; it’s one of the beautiful structures along the main road with proud companies displaying their logo at the main entrance. What a transformation!

·          I got that idea from him. Thus, I asked my father if there are still people selling land. He said “yes”. Mang Pedro’s land which is located 100 meters from the road is being sold.

·          “Ok, tay. E kung bilhin kaya natin yung lupa. Down tayo ng 20,000 pesos and the rest hulugan nalang natin. At least may pera siya buwan buwan” I said to him. “Sige, sabihin ko sa kanya”, my father told me. On the next day my father went home bringing the good news. Mang Pedro is agreeing with the terms.

Transformation

·         For two years, I am giving 5,000 pesos to Mang Pedro until the payment is finished. While we are paying the monthly dues to Mang Pedro, my father started to cultivate the land. We hired tractor here and there and leveled the land so that vehicles can be accommodated.

·         After cultivating and cleaning the land after almost one month, we are now ready to put up the sugarcane.

 

Bottomline:

·         Dream big but start small. “Great things start from small beginnings” ika nga ng Milo.

·         Life is full of abundance. You just need to look for it or search for it. No, you don’t have to search for it actually. Just look around and recognize the millions of opportunities lying around.

·         Wealth is in every corner of our eyes, we are just being blinded with our own perspective of wealth.

·         The next time you look at garbage, there might be some wealth waiting for you to discover. 

How the Stock Market Works?

Simple laman po ang stock market. Dalawang bagay lang yan. Una, yung stocks mo lumalaki ang value, pangalawa tumtanggap ka ng dibidendo mula sa kita ng kumpanya. Opo, ganyan lang po yan.Pinaganda lang ang mga words and definitions kaya parang ang hirap intindihan. Kung kaya mong magtayo ng isang karinderya, sa tingin ko kaya mo ring intindihin ang stock market.

Sige po, kunwari magtatayo ka ng karinderya o fastfood restaurant ngayong taon. Buwan buwan bumibili ka ng mga gamit sa iyong planong karinderya. Inihahanda mo na ang mga gamit para next year, kapag umuwi ka sa Pinas for good, handing handa ka na sa iyong negosyo. Kumbaga ang kulang na lang ay ang iyong presensya. Bumili ka ng singkwentang upuan sa buwan ng Enero. Ipinadala mo ang pera sa iyong mahal na ina na siyang mamamahala sa iyong mga plano at bilihin habang ikaw ay nasa ibang bansa pa. Sa buwan ng Pebrero, Nagpabili ka uli ng gamit sa iyong karinderya ng mga mesa. Sampung mesa ang iyong ipinabili dahil sa tantiya mo ay instant success naman ang iyong kakanaing negosyo. Sa buwan ng Marso, nagpabili ka ng dalawang stove sa iyong nanay. Medyo kinakabahan ka na sa iyong plano dahil nabalitaan mo na ang iyong pinabiling mga upuan at mesa noong Enero at Pebrero ay pinahiram ng iyong nanay sa inyong kapitbahay dahil sa ipinakasal na ang kanilang bunso.

Kinausap mo ngayon ang iyong nanay sa iyong nabalitaan dahil baka mauwi lang sa wala ang lahat ng pinaghirapan mo. Tumawag ka sa iyong nanay, “Nay, musta po. Hindi po ba inaagiw ang mga upuan sa bodega?” “Hindi naman anak, wag kang mag-alala malinis pa rin ang mga iyon, Siyanga pala pinahiram ko muna kay Mareng Belen yung beinteng upuan at limang mesa noong ikinasal ang kanilang bunso. Nakiusap siya sa akin. Pagkatapos noon, balik uli sa bodega. Hindi ko mapahindian baka mamaya ay magkalat pa ng tsismis at madiskaril pa ang iyong planong karinderya”, sagot ng iyong ina. “Salamat nay”, iyong nasambit na lamang. Naisip mo ngayon na tama pala si Inay. Kumbaga may puntos na rin yon sa magiging customer mo.

Sa buwan ng Abril, nagpabili ka ng mga kawali, kaldero, at iba pang mga lutuan at ipinalagay mo sa inyong bodega. Sumunod na buwan ay mga kutsara, tinidor at plato naman ang iyong pinabili. Sa buwan ng Hunyo, hindi ka muna nagpabili dahil kailangan mong magbayad sa tuition ng anak mo na nag-aaral sa private school. Siya muna ang inuna mo siyempre dahil may motto ka na “Family First”.

Sa mga sumunod na buwan kinumpleto mo ang mga gamit na iyong kakailangin sa karinderya business. Nagtabi ka rin ng maliit na salapi upang may magamit ka kung may dumating na emergency. Kinwenta mo ngayon ang lahat ng iyong ginastos sa karinderya business at iyong nakuha ang total na 200,000 pesos. Hayan, nagsisimula ka pa lamang at 200,000 pesos na ang iyong ginastos.

Heto na, pauwi ka na. Excited na excited ka dahil alam mong makikita mo na ang pamilya mo at siyempre para simulan ang binabalak mong negosyo. Pagdating sa NAIA airport iba na ang pakiramdam mo at lalo kang sumigla nang makita mo ang iyong asawa na kumakaway kasama si Junior, ang iyong anak. Halos maiyak ka dahil naisip mo matagal mo silang makakasama ngayon. Yakap dito, yakap doon, halik dito, halik doon. Halos ganoon ang eksena nang mapalingon ka sa iyong paligid.

Pagkatapos ng isang linggo, nag-aplay ka ng business permit sa inyong munisipyo para maumpisahan na ang iyong karinderya business. Dahil handing handa na ang iyong karinderya business bago ka pa man dumating sa tulong ny iyong mahal na ina, kinabukasan lang pagkatapos mong makuha ang business permit ay binuksan mo na ang iyong karinderya business.

Halos malula ka sa dami ng mga taong kumain sa iyong karinderya. Yung singkwentang  upuang pinabili mo noon ay kulang pala kaya hayun nagpabili ka uli ng singkwentang upuan at sampung mesa para maacommodate lahat ng tao. Tumawag ka ngayon sa boss mo sa Saudi upang ipaalam sa kanya na hindi ka na babalik pa at masaya ka na sa Pinas.  Sa loob ng isang taon, hindi nabawasan ang iyong mga customer kung kaya’t ikaw ay tuwang tuwa sapagkat lumalaki ang pera mo sa bangko. Bago magpasko ay kinwenta mo ang iyong kinita sa loob ng isang taon. Halos umabot ito ng kalahating milyon. Sabi mo sa iyong sarili, sa 500,000 pesos na kinita ko, yung 100,000 pesos ay kukunin ko para sa personal na pangangailangan mo. Itong 100,000 pesos na ito, ang tawa sa stock market ay Dividends. Opo, kung magkano ang idineklarang pera na pwedeng kunin mula sa kinita ng kumpanya ang tawag diyan ay Dividends. Tulad mo, kumita ng 500,000 pesos ang iyong karinderya at ang kinuha mo lamang na pera para sa iyo ay 100,000 pesos, dapat magmula ngayon ang tawag mo sa kinuha mong pera ay dividends dahil papalapit ka na sa mundo ng stock market. Papaano naman iyong natitirang 400,000 pesos mong kita? Sapagkat nais mong lumago ang iyong negosyo, iyong inilaan ang 400,000 pesos para sa isa pang karinderya na iyong itatayo sa kabilang bayan, ang Bayan ng Magiliw. Hayan, para ka ng Jollibee, may branch ka na.

Nabalitaan ngayon ng iyong kapatid na si Kuya Alex na nasa Canada ang iyong lumalaking negosyo. Tinawagan ka niya kung pwede siyang makisosyo sa iyong karinderya business. Sabi niya “ Tol, para naman makasama ko rin ang pamilya ko jan baka naman pwedeng makisosyo ako sa negosyo mo.”

Sagot mo, “ Ok lang kuya kaya lang pati si Ate Berna ay gusto ring makisosyo. Pwede ko kayong isama sa aking negosyo kaya lang ang presyo ng iyong ipupuhunan ay 450,000 pesos bawat isa. 450,000 pesos mula sa iyo, 450,000 pesos mula kay Ate Berna.”

Nabigla ang iyong kuya sa iyong sinabi “Ha! Hindi ba 200,000 pesos lang puhunan mo jan? Bakit kailangan naming magbigay ng tig-450,000 pesos sa iyo.?”

“Kuya Alex, ako lang ang may-ari noon at sa akin lang ang tubong 500,000 pesos. Pangalawa, yung pangalawang branch na aking itinatayo ay nagkakahalaga ng 400,000 pesos. Ang tubo ng bawat karinderya sa isang taon ay nasa 500,000 pesos” sagot mo kay Kuya Alex mo. Sa stock market ang tawag dito ay Capital Appreciation. Yung 200,000 pesos na ipinihunan mo ay hindi na kasing-halaga dati bagkus ay tumaas na dahil sa lumalaking kita ng iyong negoyso.

“O sige sigepara wala ng problema magpapadala ako ng 450,000 pesos. Teka sa 500,000 pesos na kinita mo sa isang karinderya magkano ang akin?, tanong ni Kuya Alex.

“30% ang mapupunta sa iyo kuya at 30% naman kay Ate Berna. Yung 40% sa akin dahil ako naman ang nagtayo ng negosyo at nagpalaki,” iyong sagot kay Kuya Alex. Dahil may kasosyo ka na, ikaw pa rin ang nagmamando ng karinderya business ninyo dahil ikaw ang may pinakamalaking ambag sa puhunan. Ang tawag sa iyo ay Majority StockHolder sa stock market. Halimbawa sa Ayala Land, ang majority stockholder ay ang mga Ayala clan pero marami silang mga kasosyo tulad nina Ate Berna at Kuya Alex. Ang Ayala Family pa rin ang nagmamando ng Ayala Land kahit may mga kasosyo na sila dahil sila ang Majority StockHolder ng kumpanya.

Sa stock market, pwede kang kumita dahil sa Capital Appreciation at pangalawa dahil sa Dividends. Sa stock market, ikaw ay magiging katulad ni Kuya Alex at Ate Berna mo dahil makikisosyo ka sa mga negosyo ng mga mayayamang tao sa Pilipinas.

Halimbawa dahil paborito mong bangko ang Metro Bank, bumili ka ng shares nito. Sa loob ng isang taon ay kumita ang Metrobank ng limang bilyong piso at nagdeklara ang kumpanya ng isang bilyong  dibidendo. Katulad lang ito ng ginawa mo noon nang magdeklara ka ng 100,000 pesos na dibidendo para sa iyong personal na gastusin. Dahil ikaw lang ang may-ari ng karinderya mo noon kaya solong solo mo ang dibidendo mo. Pero sa Metrobank, dahil napakaraming mga nagmamay-ari nito, ang dibidendo ay ipapamahagi sa mga nagmamay-ari ng mga shares nito. Katulad mo, next year dahil kasosyo mo na si Kuya Alex at Ate Berna mo, kung magkano ang idineklara mong dibidendo ay paghahatian ninyong tatlo ayon sa laki ng inyong pagmamay-ari ng karinderya. Ang tawag dito ay Dividends.

Sa sumunod na taon, ang Metrobank ay kumita ng pitong bilyong piso at dahil lumaki ang kita nito ay dumami ang gustong bumili ng shares nito. Naging interesado pa nga ang kaibigan mong foreigner na bumili ng Metrobank shares dahil sa laki ng kita at potensyal ng bangko na ito. Dahil maraming gustong bumili ng Metrobank shares, tumaas ang presyo nito. Ang presyo nito na binili mo sa halagang 50 pesos per share ay nasa 70 pesos per share na. Ang tawag dito ay Capital Appreciation.