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Your New Day is Dawning At The Sign Of Opportunity

– 7-Eleven® Franchise Opportunities

Not Just Bigger…Better


With nearly 30,000 stores in 17 countries, including 5,800+ in the US and Canada, it’s easy to say we’re
the world’s largest convenience retailer. Our global scale gives us capabilities that directly impact and
improve store operations…and make 7-Eleven® a very different franchise opportunity.

The 7-Eleven brand is a global icon—instantly recognized, understood and trusted internationally. To
customers world-wide, we’re known for our products, quality, service, cleanliness and value. In the
convenience industry, we are the benchmark for innovation, technology and profitability.

Technology That Puts The Customer First


Our business model uses technology to put the customer at the center of all decisions. 7-Eleven’s
investment in information technology and ordering systems leads the industry. We’ve constructed
innovative processes to understand and respond to the immediate needs of convenience customers, and
have invested millions in the development of a proprietary Retail Information POS scanning system.

This revolutionary retail technology


ƒ enables the Franchisee to have the right product assortment in store to meet customers’ needs,
ƒ helps ensure adequate staffing,
ƒ helps simplify store operations and facilitate delegation,
ƒ tracks daily transactions to generate sales and inventory reports,
ƒ tracks employee payroll information and prepares daily cash reports, and
ƒ enables the Franchisee to spend less time in the backroom and more time on the sales floor,
analyzing product assortment, training store employees and interacting with customers.

Key Advantages In The 7-Eleven System


ƒ 7-Eleven obtains and bears the on going cost of the land, building and store equipment. When
we build a new site, we invest between one and two million dollars.
ƒ 7-Eleven and the Franchisee share in the store’s gross profit.
ƒ 7-Eleven pays water, sewer, gas and electric utilities.
ƒ 7-Eleven pays for any building rent and property taxes.
ƒ 7-Eleven provides financing for all store operating expenses.
ƒ 7-Eleven provides bookkeeping, bill paying and payroll services for store operations.
ƒ 7-Eleven provides a support structure and a business consultant who meets with the Franchisee
weekly to help maximize store performance.

Most franchisors either do not provide these services or require additional fees if these services
are available.

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In The Community…
7-Eleven is a good neighbor and a responsible corporate citizen. We take pride in several long-standing
programs through which we have served people in need, supported our communities and become an
example of Responsible Retailing in the convenience industry.

We developed our nationally acclaimed Come of Age® awareness and personnel-training program to
help ensure that age-restricted products such as alcohol, tobacco and lottery tickets are sold in a legal
and responsible manner.

Now in its 10th year, Operation Chill® provides Slurpee® coupons to law enforcement agencies
nationwide, which police officers use to “ticket” kids for good behavior. Since the program’s inception,
some eight million coupons have been distributed. Slurpee® coupons also are a popular reward for
academic effort and school attendance in our communities.

7-Eleven’s corporate contributions and employee and customer donations have combined to provide
more than $100 million over the past 30 years for disaster relief, humanitarian aid, education and health
services.

Convenience For All Means Business For You


7-Eleven sells the most USA Today newspapers, Sports Illustrated magazines, pre-paid phone cards, hot
dogs, cold beer and Gatorade, bottled water and money orders. Our “first, best or only” strategy has led
to the development of proprietary products that differentiate and define us, such as fresh foods, 7-Eleven
coffee®, Classic Selection® water and America’s favorite treat, Slurpee®.

In a four-week period, customers visit a 7-Eleven store an average of 17 times, 80 percent of their total
trips to any convenience store.

Nearly one-third of the six million people who stop by a US 7-Eleven store each day purchase
immediately consumable food.

7-Eleven is America’s favorite beverage destination. More than half the customers each day purchase a
beverage. A typical 7-Eleven store in the United States has between 2,400 and 3,000 square feet, and
carries about 2,500 different items.

7-Eleven was the first to…operate 24 hours a day…sell fresh-brewed coffee in to-go cups…have a self-
serve soda fountain…and offer super-size drinks.

7-Eleven customers sip and slurp more than 13 million Slurpee® beverages each month. Since its
introduction in 1966, some six billion Slurpee® drinks have been sold, just about enough for every
person on the planet to have slurped. 7-Eleven coined the term “brain freeze” in 1994 to communicate
the painful joy of drinking a frozen Slurpee® beverage.

7-Eleven has the largest ATM network of any retailer in the United States.

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Live The Dream
A 7-Eleven franchise is the chance to operate your own business, be your own boss and build something
you can be proud of. With a moderate investment, you can enjoy the longevity, stability and proven
results of a global company, and the satisfaction of serving your customers. We take an active role in
your business because we are successful when you are. No wonder thousands of families have decided
to go into business with 7-Eleven.

Fresh Ideas
7-Eleven has gourmet…to go! Today’s time-pressed consumers are health and taste conscious, and
we’re here for them with a great assortment of convenient, flavorful fresh foods. New sandwich
selections feature artisan breads with specialty meats, gourmet cheeses and spicy sauces. Open-air
display cases are brimming with fresh fruits and ready-to-eat vegetables, and customers will be tempted
by the smell of freshly baked cookies, doughnuts, muffins and brownies.

Our commitment to offering the very freshest foods is made possible by agreements with local
commissaries and bakeries, which every day produce quality food menu items to our rigorous standards.
Our proprietary product tracking and ordering technology, combined with our daily distribution
program, ensures that stores have the fresh foods customers want, just hours from the kitchen.

The result: customers can count on 7-Eleven for an assortment of fresh food items that are appealing,
appetizing and easy to purchase.

7-Eleven® is the Sign of Opportunity because a simple truth drives our business: people need
convenience…people need us. The pace of today’s society demands an accessible, clean location that is
always open and offers a wide assortment of the foods, products and services consumers want most. Or,
in the timeless words of 7-Eleven’s founder, “what the customers want, when and where they want it.”

Much has changed since we invented the convenience industry 80 years ago. The milk, bread and eggs
we sold when other retailers were closed on Sunday, at that first store in Dallas, Texas, have become the
2,500-strong product assortment that is monitored and replenished daily, and changes constantly. A
simple cash register has been replaced by a sophisticated POS system. And a neighborhood store has
evolved into a proven business model that empowers the Franchisee.

Your New Day is Dawning… At The Sign Of Opportunity

This is not an offer to sell, or solicitation of an offer to buy, a franchise. An offer is made by prospectus only. 7-Eleven, Inc.
is an equal opportunity organization.

New York – This advertisement is not an offering. An offering can only be made by a prospectus filed first with the
Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.

www.7-eleven.com
800-255-0711

3
A Financial Preview of the 7-Eleven® Franchise System

These materials are intended to answer your general questions about a 7-Eleven Store Franchise to enable you to
determine if you wish to continue learning more about our franchise opportunities. You will be given specific
details when you meet with your Area Franchise Sales Manager in one of our operating areas.

This information is not an offer or solicitation of an offer of a franchise. Our Uniform Franchise Offering Circular
(UFOC) will disclose all the material facts about a 7-Eleven franchise. We recommend that you review all
documents relating to a franchise with a certified financial advisor and/or your legal advisor.

Ownership
To make this business opportunity possible, 7-Eleven obtains and bears the ongoing cost of the land, building and
store equipment. The company then leases (or subleases) a fully equipped, ready-to-operate 7-Eleven Store
complete with inventory to a Franchisee. A 7-Eleven Store Franchisee does not obtain any ownership interest or
equity in the store or equipment.

Franchise Fee
The initial franchise fee for a 7-Eleven Store Franchise will vary by store due to the sales and gross profit
merchandise trends (excluding gasoline profits) of the individual stores. The current national average franchise fee
for a 7-Eleven Store is $128,000, but the actual fee may vary significantly depending on the store. The fee for a
new store or a store with less than 24 full months of sales history is based on a designated group of stores within
its demographic area.

Each 7-Eleven operating area can provide a current list of all stores available for franchise in that division
and the specific franchise fees for each store.

Initial Down Payment Toward the Inventory


One of the benefits of a 7-Eleven store franchise is that 7-Eleven purchases the initial inventory for the store on
behalf of the Franchisee and stocks the store of an incoming Franchisee. The Franchisee buys the inventory from
7-Eleven; the cost of the purchase is not included in the franchise fee. A fully stocked store generally needs
inventory costing about $54,000, but the actual amount may vary significantly depending on the store. At the time
the Franchisee enters into a franchise agreement, the Franchisee is required to either pay the inventory in full or
provide a $20,000 down payment on the initial inventory purchased by 7-Eleven for the store, and the remaining
cost of the inventory will be financed. For a store that sells gasoline, there is a gasoline franchise fee that
averages about $20,000, but could be as much as $40,000.

Business Licenses, Permits, Bonds, and Cash Register Fund


In addition to the franchise fee, gasoline fee (if applicable), and initial down payment, the Franchisee pays the cost
of all business licenses, permits and bonds required by governmental agencies or by 7-Eleven for the franchise
business. The average cost of licenses is $9,000 but the actual amount may vary by store. The Franchisee must
also initially invest in the cash register fund for the store to provide the change fund necessary to operate the
programs offered in that store. This amount will vary but generally begins at about $1,000.

So What is the Franchisee Investment?


The individual 7-Eleven Store Franchise provides a business person an opportunity to franchise a nationally known
convenience store for a moderate investment. An average up-front cost for a 7-Eleven franchise is approximately
$191,000 and includes the franchise fee, gasoline fee if a gasoline store, the store’s down payment on the opening
inventory, supplies, business licenses, permits, bonds, and cash register fund. It is paid in full to 7-Eleven upon
the signing of a franchise agreement. The actual investment may vary significantly depending on the store.
Premium Sale
The list of stores available for franchise that will be provided at your first meeting will include stores that are
currently operated by 7-Eleven and stores that are currently operated by a 7-Eleven Store Franchisee. In addition
to the payments to 7-Eleven of the franchise fee, gasoline fee, initial down payment, cash register fund and
licenses, permits and bonds, the purchase from a current 7-Eleven Store Franchisee may require a payment to the
selling Franchisee. The amount of the payment is determined through an agreement between the current
Franchisee and prospective Franchisee. The prospective Franchisee who offers to buy a 7-Eleven Store
Franchise from an existing Franchisee must be approved by 7-Eleven.

Contract
The term of the 7-Eleven Franchise Agreement is 15 years. Renewal and termination provisions are outlined in
detail in the UFOC.

Ongoing Financing
The Franchisee may obtain necessary financing for the operation of the business from any source the Franchisee
chooses. 7-Eleven can provide an “Open Account”, or financing, to qualified Franchisees for the inventory and
operating expenses of the store. The amount financed generally fluctuates from month to month based on sales,
inventory, purchases, operating expenses and withdrawals from a store’s “Open Account.” The annual interest
rate is generally two points over the prime rate as noted in the Uniform Franchise Offering Circular.

Ongoing Fees
In a 7-Eleven Store Franchise, 7-Eleven and the Franchisee both have a stake in the store’s profitability. Rather
than taking a percent of total sales receipts, the 7-Eleven Franchisee pays an ongoing royalty amount (7-Eleven
Charge) based upon the store’s gross profit. Each month the Franchisee pays this ongoing fee to 7-Eleven as
compensation for the license of the service mark and system, the lease of the facilities and continuing services.
Details on the gross profit split are outlined in the Uniform Franchise Offering Circular.

Sales Receipts minus the Cost of Goods Sold equals Gross Profit

7-Eleven pays for: Franchisee pays for:

ƒ Property & building rent or acquisition cost ƒ Payroll and payroll taxes
ƒ Equipment purchase or rent ƒ Worker’s compensation and employee
ƒ Property taxes group insurance
ƒ Some utilities (electric/gas/water/sewer) ƒ Business taxes and licenses
ƒ Building maintenance and equipment ƒ Cash and inventory shortage
replacement expenses ƒ Store supplies and miscellaneous store
ƒ 7-Eleven advertising expenses
ƒ Indemnification ƒ Equipment maintenance and general
ƒ Initial and on-going training programs and repairs
written or on-line material on store ƒ Outside property maintenance and
operations landscaping
ƒ Bookkeeping and back office support ƒ Telephone (store line only)
ƒ Financial summary reports ƒ Janitorial and laundry services
ƒ Inventory audits ƒ Security expenses
ƒ Product development and merchandising ƒ National advertising fee and local store
assistance advertising expenses
ƒ Ongoing business advisory assistance ƒ Interest expenses
ƒ Local and national Franchisee advisory
councils

Begin our franchise process by filling out the attached application and forwarding it to us.

7-Eleven, Inc.
The world’s #1 convenience store franchise.
Copyright© 2005

M10-42 3/08
Franchise Application
Confidential
This application does not obligate
either party in any manner.

7-Eleven, Inc., will use this application to help evaluate your qualifications for a franchise.
In addition, a retail credit check and a comprehensive criminal background check will
be made. The name and address of the retail credit agency supplying 7-Eleven, Inc.
with the report will be furnished within thirty days from written request for such
information. Periodically, additional retail credit checks may be requested. Applicants
will be required to provide a business plan. Applicants will be considered without
regard to age, sex, race, religion, color, or national origin.

California - In addition, TSC Lending Group, Inc. (“TSC Group”), a subsidiary of


7-Eleven, Inc. will use this report to help evaluate your qualifications for a loan. 7-Eleven,
Inc., and TSC Group may make a retail credit check. The name and address of the
retail credit agency supplying 7-Eleven, Inc., and TSC Group with the report will be
furnished within thirty days from written request for such information.

New York - This advertisement is not an offering. An offering can only be made by a
prospectus filed first with the Department of Law of the State of New York. Such
filing does not constitute approval by the Department of Law.

An Equal Opportunity Organization

The completed application should be mailed to:


7-Eleven, Inc.
Franchise Department
PO Box 711
Dallas, TX 75221-0711

Reference #____________________
INSTRUCTIONS: Answer every question in full. If married and the spouse wishes to be a part of the franchise, both applicant and spouse must fully
complete and sign the application. If married and spouse does not wish to be part of the franchise, spouse must complete Section 1: Spouse Information.
APPLICANT information is in the left column on all pages of this form. SPOUSE information is in the right column. This is confidential information.
This application is not a contract. All information must be provided for your application to be considered.

Section 1: Applicant Information Section 1: Spouse Information (If married, Section 1 must
be completed even if spouse will not be a part of the franchise)

Mr. Mrs. Ms. Mr. Mrs. Ms.


Legal Name_________________________________________ Legal Name__________________________________________
Last First Middle Last First Middle
Address____________________________________________ Address____________________________________________
City_________________________ State_______ Zip _______ City_________________________ State_______ Zip ________
How long have you lived at this address? ____yrs _____months How long have you lived at this address? ____yrs _____months
Date of Birth __________ Social Security #________________ Date of Birth __________ Social Security #________________
Best way to contact you work home cell e-mail Best way to contact you work home cell e-mail
Home Phone _______________ Cell Phone________________ Home Phone _______________ Cell Phone________________
Work Phone _______________ Best time to call ___________ Work Phone _______________ Best time to call ___________
E-mail Address______________________________________ E-mail Address______________________________________
Driver’s License Number _________________ State_________ Driver’s License Number _________________ State_________
If not a US citizen, what is your immigration status? If not a US citizen, what is your immigration status?
__________________________________________________ __________________________________________________
Immigration card # ___________________________________ Immigration card # ____________________________________
How long have you been in this country? __________________ How long have you been in this country? __________________

Section 2: Applicant Education Section 2: Spouse Education


Last High School attended______________________________ Last High School attended______________________________
City_______________________________ State____________ City_______________________________ State_____________
Highest grade completed (circle) 8 9 10 11 12 Highest grade completed (circle) 8 9 10 11 12
College Attended _____________________________________ College Attended _____________________________________
Major subject _______________________________________ Major subject _______________________________________
Years completed ________ Graduated? Yes No Years completed ________ Graduated? Yes No
If yes, what degree did you earn? ________________________ If yes, what degree did you earn? ________________________
__________________________________________________ __________________________________________________

Section 3: Applicant Work History Section 3: Spouse Work History


Name of Current Employer or Current Business Owned Name of Current Employer or Current Business Owned
(If not working, list Last Employer or /Last Business Owned) (If not working, list Last Employer or /Last Business Owned)
__________________________________________________ ___________________________________________________
Address____________________________________________ Address_____________________________________________
City_________________________ State_______ Zip _______ City_________________________ State_______ Zip _______
Business Phone number _______________________________ Business Phone number _______________________________
Are you an employee the owner Are you an employee the owner

If Employee, what is/was your Job Title____________________ If Employee, what is/was your Job Title_____________________
Date Started Employment / / Date Ended / / Date Started Employment / / Date Ended / /
Describe your responsibilities ___________________________ Describe your responsibilities ___________________________
__________________________________________________ __________________________________________________
Starting salary $____________ Ending salary $_____________ Starting salary $____________ Ending salary $______________
Supervisor’s name____________________________________ Supervisor’s name_____________________________________
May we contact? Yes No May we contact? Yes No
Will you be leaving this employment if you franchise a 7-Eleven Will you be leaving this employment if you franchise a 7-Eleven
store? Yes No store? Yes No

If Owner, what Percentage of the business do you own? _______ If Owner, what Percentage of the business do you own? _______
Date Business Opened / / Date Closed / / Date Business Opened / / Date Closed / /
Describe your responsibilities ___________________________ Describe your responsibilities ___________________________
__________________________________________________ __________________________________________________
Will you be selling this business if you franchise a 7-Eleven store? Will you be selling this business if you franchise a 7-Eleven store?
Yes No Yes No
2
Section 3: Applicant Work History (Continued) Section 3: Spouse Work History (Continued)
Name of Previous Employer or Previous Business Owned Name of Previous Employer or Previous Business Owned
____________________________________________________ ____________________________________________________
Address___________________________________________ Address___________________________________________
City_________________________ State_______ Zip _______ City_________________________ State_______ Zip _______
Business Phone number _______________________________ Business Phone number _______________________________
Were you an employee the owner Were you an employee the owner

If Employee, what was your Job Title______________________ If Employee, what was your Job Title______________________
Date Started Employment / / Date Ended / / Date Started Employment / / Date Ended / /
Describe your responsibilities ___________________________ Describe your responsibilities ___________________________
__________________________________________________ __________________________________________________
Starting salary $___________ Ending salary $______________ Starting salary $___________ Ending salary $______________
Supervisor’s name ___________________________________ Supervisor’s name ___________________________________
Reason for Leaving __________________________________ Reason for Leaving __________________________________

If Owner, what Percentage of the business did you own? ____ If Owner, what Percentage of the business did you own? ____
Date Business Opened / / Date Closed / / Date Business Opened / / Date Closed / /
Describe your responsibilities ___________________________ Describe your responsibilities ___________________________
__________________________________________________ __________________________________________________
Reason for selling/leaving this business ___________________ Reason for selling/leaving this business ___________________
__________________________________________________ __________________________________________________

Have you ever had management responsibilities which included Have you ever had management responsibilities which included
the hiring and/or firing of employees? Yes No the hiring and/or firing of employees? Yes No
Do you have any retail experience? Yes No Do you have any retail experience? Yes No
Why do you feel qualified to be a 7-Eleven franchisee? ________ Why do you feel qualified to be a 7-Eleven franchisee? ________
__________________________________________________ __________________________________________________
__________________________________________________ __________________________________________________
Please attach a resume or additional sheet of paper showing any Please attach a resume or additional sheet of paper showing any
additional work history or information 7-Eleven should consider. additional work history or information 7-Eleven should consider.

Which of the following best describes your intended day-to-day management in the store in the event that you franchise a 7-Eleven?
Applicant: Full-time Part-time None Spouse: Full-time Part-time None
List any other business(es) that you or your spouse currently own or have a partnership in:
_________________________________________ ______________ ______ Do you plan to sell if you franchise a 7-Eleven?
Business Name Type of Business % you own Yes No Possibly
_________________________________________ ______________ ______ Do you plan to sell if you franchise a 7-Eleven?
Business Name Type of Business % you own Yes No Possibly

How did you first find out that 7-Eleven offers franchise opportunities? Convention/Trade Show Sign at store
Franchisee Friend Magazine Newspaper Internet Other? (explain) __________________________
Name or what publication? __________________________________________________________________________________

Have you or your spouse ever filed for bankruptcy or had an involuntary petition of bankruptcy filed against you?
Applicant Yes No Spouse Yes No
(explain)________________________________________________________________________________________________
Have you or your spouse ever been charged or convicted of something other than a minor traffic violation?
Applicant Yes No Spouse Yes No
(explain – including dates, location, and charge)__________________________________________________________________
Have you or your spouse ever applied for a 7-Eleven franchise before? Applicant Yes No Spouse Yes No
Where?________________________________________________________________________________________________
Have you or your spouse ever been a 7-Eleven employee? Applicant Yes No Spouse Yes No
(explain – including dates and location)________________________________________________________________________

References Character references we can contact: (not family members)


Name _____________________________________________ Name _____________________________________________
Address ___________________________________________ Address __________________________________________
Phone number _______________________________________ Phone number ______________________________________
Occupation _________________________________________ Occupation ________________________________________
3
Please be specific and list the city and/or state where you are interested in obtaining a franchise?
1st Choice ____________________________________________________________________________________________
2nd Choice ____________________________________________________________________________________________
3rd Choice ____________________________________________________________________________________________

Financial Information
ASSETS LIABILITIES
1. Cash on hand and in banks $____________ 12. Outstanding Loans (car loan, etc.) $____________
(checking, savings, etc.) 13. Credit Cards - total balance payable $____________
2. Stocks and bonds $____________ 14. Total Mortgage - Primary Residence $____________
3. Value of Real Estate, Primary Residence $____________ 15. Mortgages due on other Real Estate $____________
4. Value of other Real Estate $____________ 16. Other Liabilities - Attach list $____________
5. Other assets $____________ (student loans, 2nd mortgage etc.)
Attach list (i.e. IRA, 401k, CD, etc.) 17. Total Liabilities (add lines 12 through 16) $____________
6. Total Assets (add lines 1 through 5) $____________

MONTHLY INCOME NET WORTH


7. Salary(ies), Wages or Commissions $____________ 18. Net Worth (subtract line 17 from line 6) $____________
8. Real Estate Income (Rental Property) $____________ (Note: A complete financial statement
9. Other Income - Attach list $____________ will be required prior to qualifying for a
(i.e. annuity, child support, etc.) 7-Eleven franchise)
10. Total Current Monthly Income $____________
(add lines 7 through 9)
INVESTMENT
MONTHLY EXPENSES What is the TOTAL amount of money you
11. Total Monthly Expenses $____________ will use to purchase a 7-Eleven Franchise? $____________
(including alimony, child support, etc.)

Where are you getting the money to invest? (loan, gift, savings, stocks, sale of property, 2nd mortgage, etc.) ___________________
__________________________________________________________________________________________________________
What is the least amount of money that you NEED for your personal monthly expenses for your first year in business? ____________
__________________________________________________________________________________________________________
Where will you get other income, if any, if you franchise a 7-Eleven store? (spouse’s income, rental property, etc.) ________________
__________________________________________________________________________________________________________

I/We do hereby represent that all of the above answers are true and complete to the best of my/our knowledge and
belief. I/We recognize that 7-Eleven, Inc., is not in any way obligated to franchise a 7-Eleven store to me/us because of my/
our execution of this document. I/We acknowledge that any false statement on this application shall be considered
sufficient cause to deny any further consideration or cause revocation of any signed agreement with 7-Eleven,
Inc. I/We understand that an inquiry regarding my/our character, general reputation, personal characteristics, financial background
and general fitness for being a 7-Eleven franchisee may be made as a result of this application.
In addition, by signing below I/We release any and all former and/or present employers, and any other personal or
business references, from any liability whatsoever in connection with 7-Eleven’s attempt to investigate my/our background
and determine my/our fitness to become a 7-Eleven franchisee. I/We hereby authorize the release of any and all documents
and records, including any privileged and confidential information pertaining to me/us to 7-Eleven, Inc. I/We specifically
authorize 7-Eleven, and/or TSC Group, to obtain a credit report on me/us. A copy of this authorization may be used in place of
and shall be valid as the original. I/We understand that this application is considered active for 180 days from the date below.

__________________________________________ ___________________________________________
Applicant Signature Spouse Signature

__________________________________________ ___________________________________________
Date Date

4 FORM 4250014 6/08

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