No 7-Eleven

Resisting Chain Stores and Corporate Control


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.


7-Eleven Franchisee Takes To The Airwaves For Help

Dev Patel - 7-Eleven Stole Our StoreThis week, Dev Patel, the son of Riverside, CA 7-Eleven franchise owners Dilip & Saroj Patel, were guests on the John & Ken Show on Los Angeles talk radio station KFI AM 640 to discuss the recent seizure of their 7-Eleven franchise by 7-Eleven.

In the interview, Patel says last December, 7-Eleven called his parents and requested a sit-down meeting with the franchise owners the following day to discuss financials. Two men from 7-Eleven Asset Protection team sat them in a room and told the couple they had several options:

1. Sign over the store, lose the store, money, investment, equity, etc. or

2. Not give it back and 7-Eleven will sue and take everything any way.

What a deal! 7-Eleven gave them until the end of the day to decide. The corporation claimed the Patel’s were involved in “excessive couponing,” specifically, using 7-Eleven’s Slurpee coupons in a fraudulent manner, paying themselves $1.50 on every Slurpee the Patel’s gave away free via the coupons.

The evidence? A few pages of transactions and 10-15 seconds of video of the franchisees working behind the counter. (7-eleven installs their own camera in franchise locations to keep an eye on things.) According to Patel’s parents, the tape wasn’t clear and they asked to see it again, 7-Eleven denied their request. Patel says he and his family were not given ample time to consult with a qualified franchise attorney to protect their assets.

You can listen to excerpts from the show here at Unhappy Franchisee.

Previously

7-Eleven Stole Our Store