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Gross Income * Support Program 7-Eleven offers a Gross Income Support Program that was created to help Franchisees attain their minimum level of gross income. It’s one of the many ways we invest in our Franchisees’ opportunity for success. If you’re interested, here’s more on the program: The program provides financial support to Franchisees whose stores had gross income of less than $185,000 in the prior calendar year. Franchisees meeting the eligibility requirements will receive an allowance up to $60,000 annually ($30,000 for 2015). The allowance will be paid monthly in equal installments. Payment starts in the July 2015 Accounting Period for eligible Franchisees. 2016 allowance payments will be based on 2015 gross profit performance if the Program continues in 2016. Here’s a look at who qualifies for this program: You must be a current or future Franchisee. Your store must be open for at least 12 months. You are a Franchisee whose store had gross income of less than $185,000 during the prior calendar year. You must meet the Recommended Vendor Purchase Requirement (RVPR) of 85%. 7-Eleven reserves the right to disqualify for compliance. This program excludes our Business Conversion Program (BCP) stores and stores receiving benefits under the Store Development Program (SDP). Gross Income Support Program details: The program starts July 1. Stores will be evaluated for qualification based on 2014 financial results. Franchisees that qualify and sign the Amendment prior to July 1 will be on the program from July to December 2015. The maximum total allowance that a store would qualify for, based on 2014 results, will be $30,000. Formula: (2014 allowance support ÷ 12) × 6 months. Stores will be reviewed each January for qualification process. New allowance allocation will be paid starting in January of each qualifying year. The maximum yearly payout under this program will be the total amount calculated during the store’s first year in the program up to a maximum annual payment of $60,000 ($30,000 in 2015). Stores will graduate from this program when gross income surpasses $185,000. *The term “Gross Income” means gross profit less 7-Eleven charge. © 2015 7-Eleven, Inc. This is not an offer to sell a franchise. For complete details on any of these programs, please refer to the Gross Income Support or Franchise Assistance Amendments. 7-Eleven Inc., One Arts Plaza, 1722 Routh St., Suite 1000, Dallas, Texas 75201

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Page 1: Gross Income Support Program - Franchise a 7-Elevenfranchise.7-eleven.com/images/9770 FINAL 7-Eleven Gross Income... · Gross Income Support or Franchise ... Accounting Period,

Gross Income* Support Program7-Eleven offers a Gross Income Support Program that was created to help Franchisees attain their minimum level of gross income. It’s one of the many ways we invest in our Franchisees’ opportunity for success. If you’re interested, here’s more on the program:

• The program provides financial support to Franchisees whose stores had gross income of less than $185,000 in the prior calendar year.

• Franchisees meeting the eligibility requirements will receive an allowance up to $60,000 annually ($30,000 for 2015).

• The allowance will be paid monthly in equal installments.

• Payment starts in the July 2015 Accounting Period for eligible Franchisees.

• 2016 allowance payments will be based on 2015 gross profit performance if the Program continues in 2016.

Here’s a look at who qualifies for this program: • You must be a current or future Franchisee.

• Your store must be open for at least 12 months.

• You are a Franchisee whose store had gross income of less than $185,000 during the prior calendar year.

• You must meet the Recommended Vendor Purchase Requirement (RVPR) of 85%.

• 7-Eleven reserves the right to disqualify for compliance.

• This program excludes our Business Conversion Program (BCP) stores and stores receiving benefits under the Store Development Program (SDP).

Gross Income Support Program details:• The program starts July 1.

• Stores will be evaluated for qualification based on 2014 financial results.

• Franchisees that qualify and sign the Amendment prior to July 1 will be on the program from July to December 2015.

• The maximum total allowance that a store would qualify for, based on 2014 results, will be $30,000. Formula: (2014 allowance support ÷ 12) × 6 months.

• Stores will be reviewed each January for qualification process.

• New allowance allocation will be paid starting in January of each qualifying year.

• The maximum yearly payout under this program will be the total amount calculated during the store’s first year in the program up to a maximum annual payment of $60,000 ($30,000 in 2015).

• Stores will graduate from this program when gross income surpasses $185,000.

*The term “Gross Income” means gross profit less 7-Eleven charge.

© 2015 7-Eleven, Inc. This is not an offer to sell a franchise.

For complete details on any of these programs, please refer to the Gross Income Support or Franchise

Assistance Amendments. 7-Eleven Inc., One Arts Plaza, 1722 Routh St., Suite 1000,

Dallas, Texas 75201

Page 2: Gross Income Support Program - Franchise a 7-Elevenfranchise.7-eleven.com/images/9770 FINAL 7-Eleven Gross Income... · Gross Income Support or Franchise ... Accounting Period,

You must have questions! Here’s a list of FAQs that should help.

www.franchise.7-eleven.com

Q: How do I know if my store is on this program?A: Your local Franchise Sales Representative will be contacting you within the next few weeks to review the program in the event your store meets the qualifications. Please feel free to contact your local Franchise Sales Representative.

Q: When will Franchisees receive their first payment?A: The Gross Income Support Program will start with the July 2015 Accounting Period, and the first payment for eligible Franchisees who sign the Amendment before July 1, 2015 will show up on the Financial that prints on or around August 10. If you have questions regarding the Gross Income Support Amendment, please contact your local Franchise Sales Representative.

Q: How can I determine if a corporate store I am interested in franchising will benefit from the Gross Income Support Program?A: Corporate stores eligible for this program can be found on the Franchising website Franchise.7-Eleven.com. They are labeled as Gross Income Support (GIS) stores. A list of stores had been supplied at the 7-Eleven Experience or can be obtained from your local Franchise Sales Representative.

Q: Why is 7-Eleven offering Gross Income Support?A: Our intention is to provide support to Franchisees while they use the System to grow sales in lower volume locations.

Q: How long will the Gross Income Support Program be offered?A: 7-Eleven will review the Gross Income Support Program annually, to determine whether to continue this program.

Q: As a Franchisee, how do I find out if I qualify?A: Existing Franchisees will be notified by their local Franchise Sales Representatives if their store qualifies for GIS. You must also meet the other eligibility requirements in the GIS Amendment in order to receive benefits under the program. Your local Franchise Sales Representative will be contacting you within the next few weeks to review the program in the event your store meets the qualifications. Please feel free to contact your local Franchise Sales Representative.

Q: If I currently do not qualify, is there any possibility of being considered for the Gross Income Support?A: Possibly. Your store will be reviewed to determine if gross income is less than $185,000 in the prior calendar year. Additionally, the store will be reviewed for Recommended Vendor Purchase Requirement (RVPR) percentage greater than 85%, and for certain breach activity.

Q: What happens if my store exceeds $185,000 in Gross Income? A: Eligible Franchisees will continue to receive the Gross Income Support for the entire current calendar year in which the store qualifies for support, regardless of the current year’s gross income. Each January for as long as the Program continues, a review of the prior year’s financials will be completed. At that time eligible stores will be identified for the program, and support will be determined. Support will be discontinued if a store exceeds $185,000 in gross income in the prior calendar year.

Q: Will I still qualify for the Gross Income Support Program if my store operates just under the $185,000 threshold?A: Yes. If you and your store qualify for the Gross Income Support Program, your minimum annual allowance will be up to $6,000 ($3,000 in 2015).

Q: Will I still qualify for the Gross Income Support Program if my store operates just over the $185,000 threshold?A: Unfortunately, the threshold was defined at $185,000 gross income. Stores exceeding $185,000 in gross income would not qualify for the Gross Income Support.

Q: I franchised a store that currently benefits from the Store Development Program, would my store qualify for Gross Income Support?A: Unfortunately, no. These are two separate programs. If your store currently operates on the Store Development Program, then the store would not qualify for Gross Income Support.

Q: I currently operate a BCP store, could I qualify for Gross Income Support?A: Unfortunately, no. The Business Conversion Program is a separate program with different terms and would not qualify for Gross Income Support.

Q: Once my store qualifies for Gross Income Support, is the amount guaranteed?A: 7-Eleven is committed to provide a defined GIS payment each month based upon the prior year’s actual gross income. However, we reserve the right to revoke the GIS payment in certain situations.