Biz Buzz: 7-Eleven seeks local owners for stores

The next time you spring for a Slurpee at a 7-Eleven, you could be buying it from a neighbor.

The Dallas-based convenience store chain is looking to sell its Richmond-area company-owned stores to franchisees.

It began the process here in 2007 but is making a bigger push now by reaching out to possible store owners.

Of the 96 stores in the Richmond/Petersburg market, the chain has sold about 11 to franchisees. In the Philadelphia market, only two of its 155 area stores remain company-owned. In the Baltimore market, all but nine of the 175 stores have been sold to franchisees. Both markets have been pushing to sell their stores to franchisees for several years.

According to 7-Eleven literature, the cost is about $185,000, which includes inventory, permits and supplies as well as licensing and franchise fees. The exact franchise fee varies and depends on gross profit over the previous 12 months. The chain retains ownership of the real estate.

Larry Draper, 7-Eleven franchise sales manager for the Richmond market, said that once the company-owned stores are sold, it could become more expensive to become a franchise owner.

"Once the area is 90 to 95 percent franchised, the possibility of acquiring a 7-Eleven store without paying what 7-Eleven calls a goodwill premium to [an existing] owner diminishes," he said.

The goodwill premium is what a buyer pays to an existing franchisee over and above the standard cost of $185,000.

To try to sell the stores, Draper is leading a series of three seminars this month highlighting the business model and franchise system. The first seminar was last week; the others are on July 23 and 25. For details, call (804) 353-7875, ext. 13.

The company is also offering military veterans a 10 percent discount on the franchise fee. The special is being offered by the company in 30 states, including Virginia.

Pearson shifts lineup

The Pearson auto group is shuffling its Midlothian Turnpike lineup of dealerships.

The chain, which was forced to close its Chesterfield County Dodge dealership last month, has renamed the dealership AutoMax. The store, next to CarMax, is at 11701 Midlothian Turnpike.

Frank Pearson, president of the dealer group, said the company already has an AutoMax store in Ocala, Fla., and had trademarked the name in Richmond several years ago.

"It's just an extension of that concept," he said.

Pearson is also moving its Mitsubishi franchise to that location.

It now sells Mitsubishis about 5 miles east at 9601 Midlothian Turnpike. That site will become Pearson Pre-Owned Vehicles and will partner with the group's Hyundai dealership across the road.

Alarm firm signs agency

Richmond Alarm Co. has hired Madison + Main to handle its marketing account.

The downtown Richmond advertising and new media agency will consult with and create marketing plans for the 62-year-old alarm company.

Richmond Alarm has offices in South Richmond off Midlothian Turnpike near Chippenham Parkway. The company also operates Lynchburg Alarm in western Virginia.

Josh Taylor at Madison + Main said the agency is doing market research for the alarm company that will be used in future ad campaigns.

The agency will begin working on creating campaigns that encompass new and traditional mediums, Taylor said.

Short Pump Kroger

Work has resumed on the Kroger at The Corner at Short Pump.

The store in the 41-acre residential and retail center at West Broad Street and Lauderdale Drive originally was scheduled to open in November, but it encountered construction delays.

The store is now scheduled to open in July 2010.

It will be The Kroger Co.'s 17th Richmond-area store.

Contact Louis Llovio at (804) 649-6348 or .