Eleven Situation

The strategy developed and implemented by 7-Eleven is not common in the field of franchising. This strategy is based on allowing the franchisee to discontinue the franchising relationship with the company if the conditions are considered unsatisfactory or if the franchisee considers that this activity does not provide him the intended results. In such situations, the company is expected to refund the franchising fees except the training expenses.

Some could find this practice as inefficient for the company. But 7-Eleven is determined to continue its application. Although the company invests in training and assisting franchisees, it is more efficient to allow franchisees to back out of the business (Entrepreneur, 2011). There are several advantages that the company is focusing on when using this strategy. For example, 7-Eleven relies on service quality. This can be achieved by motivated people that are really interested in developing a 7-Eleven franchise. There...
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