I have trouble seeing a 7/11 or Mc Donalds failing, though it probably happens from time to time. I’ve never seen a Mc Donalds close in my life (here and in the US.)
[quote=“US 7/11 Site”]Fees and Expenses:
[ul][li]The Franchisee pays a one-time initial franchise fee to 7-Eleven (averaging approximately $70,000, depending on the store's gross profit, but that may vary significantly depending upon the area).
[/li][li]A Franchisee is required to make an initial cash payment to 7-Eleven in an amount equal to the cost of the store's initial inventory, supplies, business licenses, permits, bonds and cash register fund. 7-Eleven will finance the Franchisee's continuing operating expenses. A typical initial cash payment to 7-Eleven for a franchise is about $89,000, but again, that may vary significantly depending upon the area.
[/li][li]A prospective Franchisee may wish to purchase an existing 7-Eleven Franchisee's interest in his or her store for which the prospective Franchisee must negotiate a price with the current Franchisee. This is called a "goodwill" sale. The "goodwill" price is paid to the existing Franchisee and would be over and above the typical initial cash payment made to 7-Eleven.[/li][/ul][/quote]
[quote=“US Mc Donald’s Site”]Financial Requirements/Down Payment
An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.
Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $200,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.[/quote]
The bolded parts are the reasons I imagine most people don’t open a Mc Donalds (if they wanted to.) Other reasons might include being anti-McD’s etc., but whateva. I think the bolded part is why most people don’t/can’t open a bigger name franchise (me included for now .)
I read a lot about opening a Mc Donald’s (a long long time ago), and I memory tells me that the McD corparation will not let you open a restaraunt in a location they think will fail (they help with finding a location, doing that marketing research stuff, ekcetra.)
7/11s here seem like something that just can’t fail (from where I sit anyway.) I’ve seen spots with stores directly across the street from each other. 2 new convenience stores popped up in Yonghe with in the last couple months. I’m sure that’s bad news for the 7/11 around the corner, but I also bet business is still steady and profitable.
I’ve seen 3 stores come and go in the location of one of the stores. The new one is a 全家 or something and seems to be doing well (I still go to 7/11, gotta get those Doraemon magnets.)
That’s exactly what I plan on doing starting next week. After this school semester I plan on keeping part time hours and spending the other half of my time being a businessman. I already have a couple of things going that sort of break even (which is the best I’ve done businesswise in my life so far .) I hope to spend more time on those things and make them profitable.