NJ Franchisee Says 7-Eleven is Forcing Him Out of Business

Amid Haddad, a 7-Eleven franchise owner since 2001, says he is being “squeezed out” by 7-Eleven and is asking for his customers help to battle the corporate giant. Haddad says that 7-Eleven Inc. made recent business decisions to eliminate smaller franchisee owners. As a result, he is facing an uphill battle to keep his store.

They have disabled my lottery machine, my money-order business, and are preventing me from being able to order through the corporation,” said Haddad in a recent interview.

Haddad, an Egg Harbor Township resident, has a family and is trying to put one child through college.

To represent his business interests, Haddad has hired a lawyer: Jerry Marks of Marks & Klein, LLP in Red Bank, N.J.

They (7-Eleven) are in violation of the New Jersey Franchise Practices Act,” said Marks. “They have given him no written notices regarding any termination of services, and are preventing him from making a living.”

Marks said he is developing a lawsuit against 7-Eleven, and may join class-action suits being formed.

This isn’t the first time 7-Eleven has used intimidation tactics on their franchisees. Andy Kahn, a 7-Eleven franchisee of 34 years, is suing the company for stalking, harassment, intentional infliction of emotional distress and for running him down outside a CVS Pharmacy.

Franchisees Dilip and Saroj Patel are also suing 7-Eleven alleging the company the convenience store giant is using “storm trooper” tactics to illegally seize valuable franchise rights from its franchisees in order to resell them for millions of dollars.

Brigantine 7-Eleven owner feels company is trying to force him out of business [Brigantine Beachcomber]

7-Eleven Franchisee Tells NPR, We Are “Glorified Managers”

Via WBEZ

Bigger than burgers and fries, franchising blamed for low wages

Popular business model squeezes small business owners between corporations and workers.

When we asked what it is like to own a franchise of the world’s largest convenience-store chain, Hashim Syed took us to a cramped back room of his 7-Eleven store on Chicago’s North Side.

Sitting next to a wall of tubes filled with bright-colored syrup for the soda machine, Syed recalled a young man working the graveyard shift a few years back. This employee wanted to be with his father, who was gravely ill.

“Where we come from,” said Syed, 71, who was born in India, “it’s very important that you spend the final days with parents for the comfort.”

But the worker could not afford to take unpaid leave. And Syed could not afford to replace him. “I’d have had to have somebody else do his work,” Syed said, his voice becoming faint. “I would have ended up paying two wages.”

The employee kept most of his shifts and, to this day, Syed still regrets it. “I wish I would have given him some time off,” he said.

In Syed’s nearly quarter century as a 7-Eleven franchisee, he has worked brutally long hours, his profits have fallen far short of his expectations, and the Dallas-based chain has imposed tighter rules on how he runs the store.

Something else that steams Syed is his role as an employer. He says all of those 7-Eleven rules limit his ability to cut costs and free up resources to treat his workers better. “When I lived in Bombay,” Syed said, “this is not what I thought they meant by the American Dream.”

Continue reading Bigger than burgers and fries, franchising blamed for low wages [WBEZ]

Related

7-ELEVEN Franchise Owners are Glorified Managers, Franchisee Tells NPR [Unhappy Franchisee]

Two South Jersey Franchisees Sue 7-Eleven

Two South Jersey Franchisees Sue 7-Eleven

Claim chain not keeping up with competition in their markets

CHERRY HILL, N.J. — Two southern New Jersey 7-Eleven franchisees have sued the Dallas-based convenience store chain in federal court for allegedly failing to keep up with the competition–Wawa, reported The Courier-Post.

Sam Younes, of Cherry Hill, N.J., and Tamer Atalla, of Cape May, N.J., allege 7-Eleven has “failed to change its stores, products and marketing despite the ever-changing market and the expectations of consumers,” said the report, citing court documents.

They also allege that sales and profits have fallen “due to the competition, and the lack of a response by 7-Eleven.”

Continue reading Two South Jersey Franchisees Sue 7-Eleven [CSPnet]

7-Eleven’s Astronomical Franchise Start-Up Fees

Thinking of becoming a 7-Eleven franchsisee? Of course not. But if you were, be prepared to shell out BIG BUCKS to get your bland brand up and running!

Entrepreneur.com has a report on the costs of becoming a 7-Eleven franchisee and it ain’t cheap!

Startup Costs, Ongoing Fees and Financing

Total Investment: $30,800 – $1,500,000
Franchise Fee: $10,000 – $1,000,000
Ongoing Royalty Fee: Varies
Term of Franchise Agreement: 10years, renewable
FINANCIAL REQUIREMENTS
Net Worth: $127,000

Ouch! If the cost isn’t enough to deter the savvy business person, 7-Eleven will raid your store if you sell items your customers request.

You can read the full report here. [Entrepreneur.com]

Current 7-Eleven Franchise Controversies

Via UnhappyFranchisee.com

NY Franchisee Sues 7-Eleven Inc.; Lost $420K in 20 Months

Another franchisee lawsuit has been filed against 7-Eleven Inc.

NY franchisees Michael Governara and Stefanie Governara are suing 7-Eleven, Inc. claiming that they were deceptively sold into a franchise scheme that turned them into wrongly classified, uncompensated employees rather than business owners, that they were promised training and support they never received, and that they were terminated after investing nearly half a million dollars.

Read More: 7-ELEVEN Franchise: Franchisee Sues for Fraud, Labor Violations, Unfair Dealings

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Marks & Klein Standing Up for 7-Eleven Franchisees

Insider franchising news and views, uncensored NJ law firm contends 7-Eleven franchisees are misclassified employees

Red Bank, NJ franchisee law firm Marks & Klein is defending 7-Eleven franchisees from alleged unfair termination, and is spearheading class action lawsuits alleging that the 7-Eleven franchise program is, in actuality, an employment scam:

NJ Lawsuit Claims 7-Eleven Franchise Program is an Employment Scam

7-ELEVEN, INC. v. SODHI

MICHAEL GOVERNARA, STEFANIE GOVERNARA vs. 7-ELEVEN, INC.

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7-Eleven Franchisees Frustrated With FOA Leaders’ Silence, Inaction

7-Eleven franchisees are expressing disappointment, frustration and anger at FOA & NCASEF leaders who (they contend) remain silent as they are attacked in the media and, some believe, by their own franchisor.

Read More: 7-ELEVEN: UnhappyFranchisee.Com Invites Views of 7-11 Franchisee Groups

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Full 7-Eleven Franchisee Coverage at UnhappyFranchisee.com