VF Franchise Consulting

Finance plan for Indonesia 7-Eleven

Sep 25, 2015


Modern Internasional, the master franchisee for Indonesia 7-Eleven, has partnered with Credit Saison of Japan to create a fund to help finance new franchisees.

The two companies have created a joint venture called PT Saison Modern Finance (SMF) in Indonesia. MI will take a 30 per cent stake in the business, which will have a paid-up share capital of Rp100 billion.

The JV will support the expansion of Indonesia 7-Eleven franchise business. In the initial phase of the business, it will provide finance leases at an attractive cost for equipment installed at 7-Eleven stores, particularly for the new sub-franchisees to be secured in the future.

“MI believes that this will reduce cost of capital for a new store opening and hence enhance the attraction of its 7-Eleven sub-franchising model. The JV also aims to develop payment products such as pre-paid cards for the customers of 7-Eleven by leveraging on CS’ strength as the third largest credit card issuer in Japan,” the companies said in a statement.

The JV is committed to provide attractive IDR denominated leasing terms.

“MI expects the JV will contribute positively to the development of the 7-Eleven sub-franchising business as well as improvement in 7-Eleven’s customer relationship management through its prepaid card and loyalty programs.”

In Japan, CS has a joint venture with 7-Eleven global brand parent Seven & I Holdings for the issuance of Saison Card. The finance company also operates overseas offices in China, Vietnam and Singapore, and is seeking to further expand its business in the rapidly-growing Asian market.

Source: insideretail.asia

Related news:

Matahari makes it 140

Lulu Group plans Indonesia store this year

Indonesian retailers prepare for inflation shock

Indonesia retail sales growth falters

Beauty Community to open stores in Indonesia

Courts Indonesia plans fast expansion

Indonesia retail sales surge in June

Matahari has strong half

Dairy Farm Indonesia reviews struggling Starmart

[ Go back ]

Franchise Opportunities