Seven Eleven, 2020 Franchise Win-Win Agreement... Increased Support Items for Waste Disposal

[Asia Economy Reporter Minyoung Cha] Seven Eleven announced on the 3rd that it signed the 2020 franchisee win-win agreement last month.

To alleviate the burden of store operation costs for franchisees, Seven Eleven decided that the headquarters will fully support the costs of about 30 facilities, equipment, and parts that were previously shared between existing franchisees and the headquarters according to the distribution rate, but only for existing stores.

The scope of disposal support has been expanded from existing food categories such as lunch boxes and sandwiches to convenience foods like cooked noodles and salads, as well as differentiated products like roasted sweet potatoes. Convenience foods such as cooked noodles and salads have increased support from the existing 20% to up to 40%, and roasted sweet potatoes will receive a constant 20% disposal support for stores with sales exceeding a certain level. However, the support range for food categories has been reduced from a maximum of 50% to a maximum of 40%.

In addition, the franchisee win-win support system established since 2018 will be continuously maintained and developed. Through a partnership with Woori Bank, Seven Eleven has created a 100 billion KRW franchisee win-win fund to provide interest support when franchisees in need of operating funds apply for loans.

Furthermore, a new 'Stable Investment Type' was introduced, raising the franchisee distribution rate from the existing 40% to 45%, an increase of 5 percentage points. For stores with prolonged sales slumps, an exit strategy is in place that reduces termination costs by 50%. Also, the disposal support amount for room temperature and refrigerated products has been expanded to 300,000 KRW per quarter (1.2 million KRW annually).

Additionally, various welfare programs are operated to enhance franchisee satisfaction, including a struggling store recovery program, special recruitment of outstanding mates, preferential hiring and vacation camps for franchisee children, and a welfare mall exclusively for franchisees.

This content was produced with the assistance of AI translation services.