Bottom line
- Total investment $142K – $1.6M including a $0 franchise fee.
- Average unit revenue of $1.8M/year.
- Rated STRONG with a risk score of 37/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 29 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 7-Eleven unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 7-Eleven units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$358K
on $1.8M purchase
Total debt
$1.4M
SBA $0.9M + senior + seller note
Overview
About
7-Eleven franchisees operate 24/7 convenience stores selling gasoline, prepared food, beverages, snacks, and merchandise. Day-to-day responsibilities include inventory management, staff scheduling, customer service, fuel station maintenance, regulatory compliance, and point-of-sale operations across typical 2,000–3,000 sq ft retail footprints.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 32 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
32
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
7-Eleven presents moderate-to-high risk due to shrinking unit base, extensive litigation, opaque profitability metrics, unprotected territories, and unclear royalty calculations despite strong revenue averages.
Score breakdown · what drove the 37 / 100 rating
- 01MINORDeclining unit count (-0.2% YoY) signals system contraction despite massive franchise base
- 02MINORNo average net income disclosure prevents ROI validation; only $1.79M avg revenue provided without profitability context
- 03HIGHSignificant litigation history involving wrongful termination, breach of contract, fraudulent inducement, and FTC actions suggests systemic franchisor-franchisee relationship issues
- 04MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's sales in overlapping areas
- 05MEDVariable royalty structure tied to Gross Profit (not Net) is opaque and difficult to forecast; actual percentage rates not disclosed
- 06MEDHigh initial investment ceiling ($1.6M+) combined with undisclosed profitability creates severe ROI uncertainty
- 07MINOR15-year term is lengthy with no clear exit strategy articulated, locking franchisees into declining system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
7-Eleven · FDD (2025) PDF