The Patel family owned and operated this 7-Eleven franchise in Riverside, California for 19 years. Recently, 7-Eleven seized the location claiming “excessive couponing” and forced the Patels to sign over the store despite asking for time to hire a qualified lawyer to represent them.
Franchising Wars: Besieged Franchisor Fights Back Against Disgruntled Franchisees
More than a dozen franchisees are suing 7-Eleven, alleging that the franchisor overstepped its legal bounds and unfairly terminated their franchise contracts. 7-Eleven says it had the legal grounds to terminate the franchise contracts.
The convenience store industry relies on franchising as part of its core business model. And like any other franchised business, many convenience stores live and die according to the terms of their franchise contracts.
But what happens when the franchisor is alleged to be using the franchise contract to unfairly target its franchisees?
That’s a question that at least a dozen 7-Eleven storeowners want answered–and they have filed lawsuits to obtain legal remedies for what they believe are unfair business practices by the popular franchisor.
According to the Dallas Business Journal and other sources, Dallas-based 7-Eleven Inc. is the defendant in more than twelve lawsuits alleging that the company terminated franchise contracts without proper cause. Plaintiffs in the suits claim that 7-Eleven targeted stores in high-traffic locations, enabling the franchisor to offer the locations to new franchisees willing to pay higher fees.
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