7/11 Franchise Cost in the Philippines and Other Profitable Franchise Opportunities

In the Philippines, franchising is a well-liked business strategy, particularly for people looking to launch their own company without having to start from scratch. One of the top franchises in the nation is 7/11, a network of convenience stores with a broad selection of goods and services. In the Philippines, how much does it cost to franchise a 7/11 store?

Depending on the size and location of the store, the total franchise price for a single site might range from Php 1 million to Php 5 million, according to 7/11 Philippines. This covers store construction, the franchise fee, and the initial stock. The 10-year tenure of the franchise is extendable for another 10-year period. The franchisee must also pay a 0.5% advertising fee and a 0.5% payment to the National Advertising Fund in addition to a 3% royalty fee based on gross sales.

In the Philippines, there are additional lucrative franchise options outside 7/11. For instance, one of the most well-known franchises in the globe is McDonald’s, with a total franchise fee in the Philippines ranging from Php 45 million to Php 60 million. This covers store building and equipment, as well as the franchise fee. The 10-year tenure of the franchise is extendable for another 10-year period. In addition, McDonald’s charges a 4% advertising fee and a 5% royalty fee based on gross sales to its franchisees.

A gas station business is another well-liked franchise option. A gas station can be a profitable business in the long run, even though the initial investment is high, particularly in high-traffic areas or along major roads. Depending on the location and size of the station, a franchise for a gas station in the Philippines might cost anywhere from Php 15 million and Php 25 million. This covers the franchise fee, the land leasing, the building of the store, and the equipment. The typical length of a franchise is 10 to 15 years, extendable for a further 10 to 15 years. Additionally, a portion of the gross profit on fuel sales—typically around 1%—must be paid by the franchisee.

What amount of gasoline does a gas station sell each month? Depending on where the station is located and how big it is, the answer changes. However, the average Philippine gas station can sell between 100,000 and 150,000 gallons of fuel per month. This amounts to monthly total sales of between Php 5 million and Php 7.5 million. Convenience stores, vehicle wash services, and other goods and services are other revenue sources for gas stations.

In the USA, are gas stations a successful industry? In the United States, the gas station industry is predicted to earn about $249 billion in sales in 2021, according to a report by IBISWorld. While gas stations can make money from their convenience stores, car wash services, and other goods and services, the profit margin on fuel sales is very low. The success of a gas station, however, depends on a number of variables, such as location, competition, and operational costs, just like any other type of business.

In conclusion, for people looking to launch a business in the Philippines, franchising may be a wise choice. Franchises offer a tested business strategy and a well-known brand, despite the hefty initial investment cost. Before choosing to franchise a 7/11 shop, a McDonald’s restaurant, or a gas station, it’s crucial to conduct thorough study and carefully weigh the costs and advantages.