7-Eleven Stores Pty Ltd has restructured its business model as part of a package of initiatives to provide greater support for franchisees across Australia and incentivise ethical commercial activity and oversight.
The updated model will position franchisees to maximise opportunities to run their businesses effectively, efficiently and with the level of integrity expected of everyone involved in the 7-Eleven business.
The package of initiatives, including the updated model, will be progressively rolled out in cooperation with franchisees around Australia over the next few months and represents 7-Eleven’s commitment to continuous improvement across its business.
The updated model is built around:
- Ensuring a fair, equitable and sustainable outcome for all.
- Incentivising ethical and responsible business practices.
- Zero tolerance for unlawful and inappropriate activity.
At the heart of the changes to the model are a new profit-sharing arrangement and the lifting of the threshold at which company support to franchisees is paid, to help ensure sustainability.
To receive the benefits available under the updated model, franchisees will be required to meet certain conditions in relation to reporting, compliance and oversight.
7-Eleven Chairman Michael Smith said the updated business model will deliver a considerable shift in value to franchisees that is over and above what was contained in original franchise agreements.
“The updated model recognises the changing retail landscape and is part of a suite of measures that provide an appropriate and lasting remedy to the challenges being confronted by all of us,” he said.
“7-Eleven’s success has been founded on strong, deep and open relationships with franchisees and the initiatives will help ensure this remains the case into the future.”
The changes are intended to ensure that a 7-Eleven franchise continues to be an attractive investment option for individuals and families who want to be their own boss.
7-Eleven is focused on continuing to grow its business, provide employment and business opportunities for thousands of Australians and deliver products and services that all Australians enjoy.