Franchising: Pathway to Wealth Creation

Chapter 11. International Franchising

Franchising in a Foreign Country from a U.S. Base

The Southland Ice Company opened its first convenience store in 1927 and called it a Tote’m. In 1946 the company changed its store name to 7-Eleven to reflect its operating hours. The company entered franchising in 1964, signed its first United States area licensing agreement in 1968, and signed the first international licensing agreement with Mexico in 1971. In 1991 Southland Corporation, the quintessential American company was purchased by its Japanese franchisee. In 2003 almost 80% of 7-Eleven’s 24,400 stores are located outside of the United States.

Because franchising is a vehicle for growth, many franchisors ask, “Why stop at U.S. national borders?” Here ...