No 7-Eleven

Resisting Chain Stores and Corporate Control

Franchisees Allege Hardball Tactics, Store Seizures by 7-Eleven

Franchisees allege hardball tactics, store seizures by 7-ElevenVia LA Times

7-Eleven relies on thousands of franchisees to sell millions of Slurpees, Big Bite hot dogs and other snacks.

But in the last two years, at least a dozen franchisees have sued the company, alleging it stripped them of their stores for bogus reasons. Some plaintiffs say 7-Eleven targeted successful stores in high-traffic areas, then flipped them to new franchisees willing to pay the company higher fees.

Dilip Patel and his wife, Saroj, said the company used “storm trooper interrogation and isolation tactics” in such sessions. The couple, who sued in March, ultimately gave up their Riverside store, which they had run since 1995, with no compensation from 7-Eleven.

Continue reading Franchisees allege hardball tactics, store seizures by 7-Eleven at LA Times.


Franchisees Allege 7-Eleven ‘Flipped’ Their Stores [CSPnet]
Franchisees sue 7-Eleven over loss of their stores [Dallas Business Journal]
Franchisees allege hardball tactics, store seizures by 7-Eleven [Columbia Daily Herald]

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.


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