No 7-Eleven

Resisting Chain Stores and Corporate Control


Former Corporate Supervisor: 7-Eleven Has A Covert Team To Eliminate “Pain In The Ass” Franchisees

7-ElevenKurt McCord , a former 7-Eleven Corporate Investigations Supervisor, says 7-Eleven has a covert team designed to to illegally seize franchisee stores for profit and to eliminate respected franchisee association leaders they deem to be a “pain in the ass.” The bombshell was recently dropped in the lawsuit of 7-Eleven, Inc. v. Karamjeet Sodhi. Read it here. [PDF]

Via Unhappy Franchisee:

Kurt McCord, who previously worked with Target and Burlington Coat Factory, is a loss prevention professional who served as 7-Eleven’s Corporate Investigations Supervisor in 2013.

According to Kurt McCord’s Certification, 7-Eleven has a covert department designed to implement its “unfair, illegal and predatory practices” against its own franchisees.

According to McCord:

7-Eleven, Inc. has designed and implemented a predatory program to increase corporate profits by unethically stealing the equity and goodwill of its franchisees. In some cases, these franchisees spent decades of hard work and financial investment building their businesses.

7-Eleven’s scheme was to use its superior financial, legal, and corporate strength to seize the stores of profitable franchisees without providing them fair compensation for the years of goodwill they accumulated. The 7-Eleven Corporation would then resell those stores at an enormous profit.

Using an internal team masquerading as an Asset Protection (Loss Prevention) Department, 7-Eleven set a yearly number of stores to take back, prioritizing locations in areas with the highest resale values or, in some cases, operated by respected franchisees who had spoken out about the corporate giant’s corrupt practices.

7-Eleven attempts to legitimize these teams and their activities by referring to them as an Asset Protection (Loss Prevention) department, going to far as to give them names like “Centralized Investigations Team” and “Profit Assurance Team.” In reality, they’re less military opps  and more like a scorned, stalkerish ex-girlfriend who drives by their former boyfriend’s house at all hours of the night, commonly profiled on the Investigative Discovery channel. The article, 7-ELEVEN Bombshell: Insider Accuses 7-11 of Predatory Franchise Practices, can be read in full at Unhappy Franchisee.

This isn’t the first time 7-Eleven has been accused of predatory tactics.

7-Eleven is harassing a franchisee in New Jersey, going so far as to turn off his lottery machine, his money order machine and preventing him from placing orders through the corporation.

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.

Related

7-Eleven Whistleblower Alleges Predatory Practices, Franchise Churning & Personal Vendettas [Blue Maumau]


7-Eleven Retaliates Against Outspoken Franchise Owner

7-Eleven RelatiatesJust one week after 7-Eleven franchisee Hashim Syed told WBEZ the corporation treats their franchisees like “glorified managers,” 7-Eleven retaliates with a surprise visit and list of violations.

One week after his interview on WBEZ, two Senior Vice Presidents from 7-Eleven came unannounced for a surprise inspection of his franchise. The very next day, Syed received a letter stating he was violating his franchise agreement by not using a hot dog grill as required and for several items being out of stock.

In the past such letters and violations have lead to 7-Eleven swooping in and taking over the location.

Jas Dhillon, a 7-Eleven franchisee in Los Angeles and vice chair of the National Coalition of Associations of 7-Eleven Franchisees says “This is nothing but retaliation. We carry over 2,500 items in our store, from soda pops to candies to hot dogs to magazines to lottery tickets. Being out of stock of 17 — that’s less than 1 percent. Any given day, not just at 7-Eleven, at any of the other stores, you’re going to have items that we run out of, especially when you just had a hot weekend.”

Dhillon said 7-Eleven was trying to silence Syed and pointed out that the Chicago franchisee once won a national award from the company because, Dhillon said, “he ran the best store in the country.”

When questioned about the incident, 7-Eleven spokesperson Margaret Chabris issued a written statement that said her company “does not discuss publicly matters concerning our relationships with individual 7-Eleven franchisees.” Asked whether the 7-Eleven letter to Syed came in response to his WBEZ interview, Chabris did not answer the question.

7-Eleven is known for intimidating their franchisees. Currently, 7-Eleven is harassing a franchisee in New Jersey, going so far as to turn off his lottery machine, his money order machine and preventing him from placing orders through the corporation.

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.

Outspoken 7-Eleven Franchisee Gets “Retaliatory” Visit [Unhappy Franchisee]
7-Eleven warns Chicago franchisee who criticized company [WBEZ]

Previously

7-Eleven Franchisee Tells NPR, We Are “Glorified Managers” [No 7-Eleven]


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

7-Eleven Franchisee Sues 7-ElevenAmid 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”

7-Eleven Franchisee

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]


Franchisee Sues 7-Eleven For Stalking, Harassment, Hit and Run

7-Eleven Staler Lawsuit7-Eleven Franchisee of 30+ years sues 7-Eleven for stalking, harassment and hit and run outside of a CVS.

Via Unhappy Franchisee

A successful, multi-unit franchise owner who was the 2008 Franchisee of the Year is suing 7-Eleven, Inc. for stalking, harassment, intentional infliction of emotional distress, and for running him down outside a CVS Pharmacy.

Adnan “Andy” Khan has been a well-respected 7-Eleven franchisee for nearly 34 years. He owns the rights to and operates five California 7-Eleven franchises in South El Monte, West Covina, Baldwin Park, El Monte, and Pomona.

Andy Khan’s accomplishments are impressive and numerous: Founding member and Past President of the 7-Eleven Political Action Committee. An active member and past board member of three Franchise Owners Associations (FOA). Franchisee of the Year. A Certificate of Achievement and Champion Retailer designation from 7-Eleven. A Certificate of Congressional Commendation.

However, the lawsuit filed on Andy Khan’s behalf in U.S. District Court for the Central District of California alleges that the profitability of Andy Khan’s high-volume stores, along with his active and influential role in the 7-Eleven franchisee community, has made him a target for forced expulsion from the 7-Eleven franchise system.

The lawsuit alleges that the Asset Protection division of 7-Eleven is actively trying to drive out franchisees like Andy Khan – influential leaders with valuable locations – so that they can seize and resell their franchise rights to third parties for millions of dollars in additional revenue.

Andy Khan maintains that he and his Operations Manager are being subjected to intense and terrifying surveillance, via GPS tracking through their cell phones and physical “tailing” of them by a mystery man who regularly switches vehicles.

Continue reading 7-ELEVEN Franchise Lawsuit Alleges Stalking and Harrassment of 7-11 Franchisee [Unhappy Franchisee]


Franchisee Lawsuit Alleges 7-Eleven “Storm Trooper” Tactics

Dev Patel - 7-Eleven Stole Our StoreVia Unhappy Franchisee

A lawsuit filed against 7-Eleven, Inc. yesterday in the U.S. District Court for the Central District of California alleges that 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.

The lawsuit, filed by Marks & Klein, LLP of Red Bank, NJ and Schindler Law Group on behalf of long-time 7-Eleven franchisees Dilip and Saroj Patel, alleges that 7-Eleven’s aggressive Asset Protection/Loss Prevention team seized the Patel’s Riverside, CA franchise without warning as “part of a wider, nationwide 7-Eleven scheme to improperly intimidate and terminate long-term franchisees, with the goal of acquiring their successful stores.”

According to the lawsuit (Dilip Patel, Saroj Patel, and Saroj Patel, Inc., v. 7-Eleven, Inc., a wholly-owned subsidiary of Seven Eleven Japan Co. LTD, a wholly-owned subsidiary of Seven and I Holding Co., LTD.), “the sole purpose of acquiring these stores – albeit through illegal means – is to ‘take back’ the stores, at no cost, with the intent to ultimately re-sell the store, for a fee, to a third-party purchaser.”

“7-Eleven’s efforts to terminate franchisees and take-back stores have been tremendously profitable for 7-Eleven,” the suit alleges.

“…the amount received by 7-Eleven in reselling taken-back stores is in excess of ten million dollars.”

Continue reading 7-ELEVEN Patel Franchise Lawsuit Alleges 7-11 “Storm Trooper” Tactics [Unhappy Franchisee]


PETITION: Joe DePinto, Return Our 7-Eleven Or Pay For It!

Joe DePinto - 7-Eleven
There’s a new petition going around demanding 7-Eleven CEO Joe DePinto either return the Patel family’s 7-Eleven franchise or pay for it.

The Patel family have owned and operated the 7-Eleven franchise in Riverside, California for 19 years. Recently, 7-Eleven seized the location from them claiming “excessive couponing” and forced the Patels to sign over the store despite asking for time to hire a qualified lawyer to represent them. The store seizure has sparked outrage in the community prompting public protests, a Facebook page and an appearance on the John & Ken Show on Los Angeles talk radio station KFI AM 640.

The petition can be found on Unhappy Franchisee.