Fashion
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.
