7-Eleven Franchise Complaints

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• SEI (corporate) absolutely knew franchisees are under paying their employees.
  I personally had this issue come up when I worked at the corporate office.
  7-Eleven corp doesn't audit the franchisee employee paperwork, and have NO internal controls in place to monitor minimum wage, SS#'s, or I-9 compliance for hiring. SEI merely stated that employment -HR issues "are an independent contractor responsibility" and that releases them from any liability.

• How SEI doesn't know ? When SEI handles all the payroll taxes. When SEI must be filing withholding taxes with states and with IRS. So no authority have raised that these are dead people's ssn.
  5 employees look after whole east coast's franchisee accounting.
  7-11 is joke.
  Questions for 7-11
  Who gave Baig that many stores ?
  Why 7-11 was failed to see where the money was coming from ?
  Why Baig group obtained that many stores in that many states with their employee's name. 7-11 is directly involved. But poor franchisee are on stake.

• If all franchisee will start complaining federal trade commission, There is possibility in next 10 years, they and their policies/contract get investigated.

• I am currently Franchisee from last 3 years.
  I can tell my frustration in 2 sentences.
  If i won the lottery, i will make class law suit against 7-11 practices, which will benefit to all franchisee.
  If some one can/will return my 40% franchisee fee of 310k , i have paid.. i will sell my store without looking.
  I rather sell hot dog on cart in downtown than owning a seven eleven franchisee.

• Today 7-11 went to franchisee in NJ who was franchisee owner association president, and asked him to surrender his 5 stores as his licence is cancelled.
  The person went to court to get injunction.
  Another store 7-11 are asking to surrender in long island( nothing t do with feds)
  his owner is Ex chairman of National Coaltion of franchisee owners association.
  7-11 is after franchisee owners association and they want to take their stores back.
  How weaken the contract is- that 7-11 can come to any franchisee store and ask him his store back..
  NEVER EVER buy 7-11

• It is sad and unfortunate, but the franchise community has no one to blame but themselves. Their "elected leaders/representatives" were forewarned this type of activity would happen, and they collectively did nothing to prevent it. They continue to select "representatives" who themselves exhibit questionable personal and business practices or who have personal agendas which are not necessarily in the best interest of the entire franchise community. Right now they have an "elected" chairman of their National Coalition who has a direct and distinct "conflict of interest", "pretending" to represent Franchisee interests and rights, while acting as a financially compensated broker of product and services, directly to SEI.
  These "targeted" Franchisees have no more guilt than those at the helm of 7-Eleven and SEI. There is NO WAY that 7-Eleven officials did not know the manner in which these Franchisees were conducting their business. SEI has not ONE, but TWO, West Point Graduates at the helm of this "international" corporation. You want us to believe they are that "unintelligent"??? NO WAY, JOSE!!!!
  And those "friendly" field consultant visits are used to place undue force and pressure on Franchisees to give up their status as "Independent Contractors", not to "help them be successful".. In this case, complicity and guilt is a two sided street and Mr. DiPinto and Mr. Rebelez are riding right next to the Franchisees they are pursuing. Shame on all of you!!!

• To ALL 7-Eleven Franchisees: IT IS TIME TO UNITE, TO PUT A STOP TO THE ABUSES. SEI and it's leaders are only going to intrude more and more if you do not take steps, NOW, to stop them. The abuses your are currently suffering under began in earnest when the Japanese gained control of the company and got worse when they put Joe DiPinto at the helm. 7&I has an exact agenda and Joe and Darren intend to see it completed, unless you take the steps to hold SEI to the same degree of accountability and performance as they do you. THEY ARE NOT YOUR FRIEND!!!

  Your current elected National Coalition leadership, under the guidance of Bruce Maples, are not inclined nor motivated to take the actions necessary to truly protect your interests and investments. You need to find leaders who are not afraid of SEI, 7&I, 7-Eleven Inc., nor Joe and his goonies.

  I believe it is time for a class action complaint to the IRS demonstrating why you are employees of 7-Eleven and no longer Independent Contractors. There is sufficient case history and testimony by past 7-Eleven employees to support such a filing.

  I believe it is time for a class complaint to the Federal Trade Commission, demonstrating complicity between Coke, Pepsi, McLane, and any other provider which is supporting the "Business Transformation" Model, in interference and restriction of trade.

  So long as you allow your current "leaders" to sit in their nice rooms and Suites in AAA facilities, on you dime, and you don't give them SPECIFIC goals to accomplish, you will suffer from their collective inaction. Find new leaders who will take action over convenience. If you do nothing more, you will also reap more nothing!

  ALL OF US, are guilty for what is happening now. Guilty for having a dream or a better life for our families; Guilty for saving to make that dream come true; Guilty for working so hard to make success happen that we did not see what was beginning to happen to us and our dream; Guilty for believing that everything 7-Eleven was telling us could be trusted, guilty in believing Bruce and others really were representing us. Now it is time for us to represent ourselves. Stand up and Act, now!!!

• 7-Eleven franchisees may want to contact franchisee attorney Jerry Marks at Marks & Klein because he is interested in possibly pursuing a class action on behalf of 7-Eleven franchisees. He is representing franchisee Sodhi but speaking to many others.

  His contact info is in our franchise attorney directory:

  https://unhappyfranchisee.mystagingwebsite.com/resource-directory/franchise-attorney/jerry-marks/

• Independent Contractor. You and we agree that this Agreement creates an arm’s-length business relationship and does not create any fiduciary, special or other similar relationship. You agree: (a) to hold yourself out to the public as an independent contractor; (b) to control the manner and means of the operation of the Store; and (c) to exercise complete control over and responsibility for all labor relations and the conduct of your agents and employees, including the day-to-day operations of the Store and all Store employees. You and your agents and employees may not: (i) be considered or held out to be our agents or employees or (ii) negotiate or enter any agreement or incur any liability in our name, on our behalf, or purporting to bind us or any of our or your successors-in-interest. Without in any way limiting the preceding statements, we do not exercise any discretion or control over your employment policies or employment decisions. All employees of the Store are solely your employees and you will control the manner and means of the operation of the Store. No actions you, your agents or employees take will be attributable to us or be considered to be actions obligating us

• 26. Termination.

  (a) Termination by Us. We may terminate this Agreement (subject to your right to cure where stated below) for the occurrence of any one (1) or more of the following events (each of which you acknowledge is a Material Breach and constitutes good cause for termination):

  (1) Upon forty-five (45) calendar days’ notice to you, subject to your right to cure during such forty-five (45) calendar day period, if:

  (a) you do not operate the Store as a 24-Hour Operation or for a different number of hours of operation which we have agreed to in writing before the reduction in hours of

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  operation, unless the reduction (1) is the result of governmental regulation and (2) is not directly or indirectly caused by your acts or omissions;

  (b) you do not comply with any agreement to which you and we or our Affiliate are a party or with a master lease pertaining to the Store or 7-Eleven Equipment if a copy of the pertinent provisions of such agreement or lease has been provided to you, or with the usual and normal terms of any lease transaction we may enter into with respect to the Store or 7-Eleven Equipment;

  (c) you do not use the Store or 7-Eleven Equipment solely in connection with your operation of the Store under the 7-Eleven System;

  (d) you do not properly maintain the Store and 7-Eleven Equipment;

  (e) you do not obtain our advance written consent for making any additions to the Store or 7-Eleven Equipment or discontinuing using any of the 7-Eleven Equipment;

  (f) you do not remit insurance proceeds to us which are due and owing to us under the terms of this Agreement;

  (g) you do not indemnify us as required under Paragraph 18;

  (h) you do not comply with any provisions of Paragraph 31(f), except if you encumber, transfer or assign any ownership in the franchise in violation of Paragraph 25, for which we may terminate this Agreement on thirty (30) calendar days’ notice without an opportunity to cure pursuant to Paragraph 26(a)(3)(b); or

  (2) Upon thirty (30) calendar days’ notice to you, subject to your right to cure during such thirty (30) calendar day period, if:

  (a) you improperly use or jeopardize (through advertising or otherwise) the Store, the Service Mark, the Related Trademarks (or the goodwill represented by any of them), copyrights or advertising owned or licensed by us, the 7-Eleven System, or the 7-Eleven Image;

  (b) you offer or sell any Proprietary Product or other product bearing the Service Mark or any of the Related Trademarks that you have purchased from a source not authorized to produce or offer such products, and you have duly reported your purchase of such product(s) to us;

  (c) you do not pay in a timely manner any taxes or debts with respect to the Store or 7-Eleven Equipment which you are obligated to pay, or a tax lien is imposed on you which affects the Store, so long as such failure to pay or the imposition of such tax lien is not caused by us;

  (d) you do not maintain workers’ compensation coverage as required by Paragraph 18;

  (e) you fail to comply with Paragraph 15 regarding the merchandising and Inventory, Proprietary Products, product packaging and display, nationally and regionally promoted and exclusive products, retail selling prices, and designated service vendors;

  (f) you do not comply with the 7-Eleven Foodservice Standards that we establish from time to time (including the requirement to wear uniforms), except for your failure to comply with any 7-Eleven Foodservice Standards for the Foodservice Facility, with respect to which we

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  may terminate this Agreement on three (3) calendar days’ notice and opportunity to cure pursuant to Paragraph 26(a)(6) below;

  (g) you do not notify us in an accurate and timely manner of discounts, allowances or premiums you receive or of your retail selling prices;

  (h) you do not obtain or maintain all licenses, permits, or bonds necessary, in our opinion, for your operation of the Store, so long as such failure to obtain or maintain the licenses, permits, or bonds is not caused by us;

  (i) you violate or fail to comply with any applicable law, rule, regulation, ordinance or order relating to the operation of the Store, including those relating to the sale of alcoholic beverages;

  (j) the unpaid balance in the Open Account becomes immediately due and payable, but you do not repay our loan to you in accordance with this Agreement;

  (k) you fail to comply with Paragraph 12(f) regarding the use of the 7-Eleven Store Information System and data;

  (l) you do not provide records or reports we require, as provided herein, or do not cooperate with us in obtaining information from any of your vendors or state agencies, except for your failure to provide the records and reports listed in Paragraph 26(a)(4)(b) below for which we may terminate on three (3) Business Days’ notice and opportunity to cure; or

  (m) except as provided in Paragraphs 26(a)(1), (3), (4), (5), or (6), you otherwise commit a default under this Agreement which is susceptible of being cured or a default under any amendment which is capable of being cured and for which the amendment does not specify a notice and cure provision.

  (3) Upon thirty (30) calendar days’ notice to you, and with no right to cure, if:

  (a) a voluntary or involuntary petition in bankruptcy is filed by or against you, you make an assignment for the benefit of creditors, or a receiver or trustee is appointed;

  (b) you attempt to encumber, transfer or assign any interest under this Agreement or the assets of the franchised business in violation of Paragraph 25;

  (c) you are convicted of, or plead nolo contendere to, a felony not involving moral turpitude;

  (d) you do not maintain an independent contractor relationship with us;

  (e) you offer or sell any Proprietary Product or other product bearing the Service Mark or any of the Related Trademarks which you have obtained from a source not authorized to produce or offer such products, and you have not duly reported your purchase of such product(s) to us; or

  (f) you misrepresent, misstate, or fail or omit to provide material information required as a part of the qualification process.

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  (4) Upon three (3) Business Days’ notice to you, subject to your right to cure during such three (3) Business Day period, if:

  (a) your Net Worth is less than the Minimum Net Worth required by Paragraph 13(d);

  (b) you do not properly record, deposit, deliver, or expend and report Receipts or deliver deposit slips, cash reports, and all supporting documents, receipts for cash Purchases, and invoices or other reports of Purchases as required by Paragraph 12; or

  (c) during the times in which you are required to be open, you do not permit any Audit provided for in Paragraph 14 or you deny access to any part of the Store, 7-Eleven Equipment, Inventory, Receipts, Cash Register Fund, cash register receipts or readings, amusement machine, banking and other equipment readings, money order blanks, bank drafts, or Store supplies.

  (5) Upon three (3) Business Days’ notice to you, and with no right to cure, if:

  (a) you vacate, desert or otherwise abandon the Store (and, immediately after we determine that you have abandoned the Store, we may take possession of the Store pursuant to the provisions of Paragraph 26(f), operate the Store for your benefit during such notice period, and charge your Open Account for Operating Expenses and other costs that we incur in connection with the operation of the Store on your behalf);

  (b) you are convicted of, or plead nolo contendere to, any charge which involves moral turpitude;

  (c) you disclose Confidential Information in violation of Paragraph 5 (provided, however, that we will not deem you in Material Breach of this Agreement as a result of isolated incidents of disclosure of Confidential Information by one of your employees if you have taken reasonable steps to prevent such disclosure, including the steps a reasonable and prudent owner of confidential and proprietary information would take to prevent disclosure of such information by its employees, and further provided that you pursue all reasonable legal and equitable remedies against such employee for such disclosure of such Confidential Information); or

  (6) Upon three (3) calendar days’ notice to you, subject to your right to cure during such three (3) calendar day period, if you fail to comply with any of the 7-Eleven Foodservice Standards related to Foodservice Facilities or you fail to allow a quality assurance inspector into the Store when requested.

  (7) Immediately upon notice to you with no right to cure, if you violate any of the Anti-Terrorism Laws.

  (8) Upon forty-five (45) calendar days’ notice to you and with no right to cure, if a provision of this Agreement (including all or any part of Paragraphs 15, 16, or 22), which we, in our sole discretion, determine to be material, is declared invalid by a court of competent jurisdiction, as set forth in Paragraph 31(e).

  (b) Curing Breaches; Multiple Defaults. If a Material Breach is curable, as specified above, and if you have not previously been served with three (3) separate notices of Material Breach within the two (2) years prior to the occurrence of a fourth (4th) Material Breach, you shall have the right to cure any Material Breach set forth above prior to the expiration of the notice period for that Material Breach (or such other period as may be imposed by law or by any agreement to which we are a party), by

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  taking such actions (or allowing us to take such actions on your behalf) as we may reasonably determine to be necessary to restore us to substantially the same condition we would have held but for your breach. We will not use any notice of Material Breach as a basis for terminating this Agreement if: (i) such notice of Material Breach has been determined by a court not to have been validly issued, or (ii) if we agree that such notice of Material Breach was not validly issued.

  If you have been served with three (3) separate notices of any Material Breach within the two (2) years before a fourth (4th) Material Breach, we may terminate this Agreement immediately upon notice to you of the fourth (4th) Material Breach in such two (2) year period without any opportunity to cure, whether or not such Material Breaches are of the same or different nature and whether or not such Material Breaches have been cured by you after notice by us. Following the fifth (5th) anniversary of our notice to you of any Material Breach, such Material Breach will not be used as a basis for termination under this Paragraph 26(b), provided that such Material Breach has been cured.

  (c) Termination on Death or Incapacitation. We may terminate this Agreement upon thirty (30) days’ notice (or such longer period that we may determine or as required by applicable law) if you die or become incapacitated. However, if you are more than one (1) individual and only one (1) individual dies or becomes incapacitated, we may, at our option, (1) continue this Agreement with the survivor or non-incapacitated individual or (2) require the survivor or non-incapacitated individual to execute our then-current form of Store Franchise Agreement, which contains the same financial terms as this Agreement, for the remainder of the Term of this Agreement.

  (d) Market Withdrawal. We may terminate this Agreement upon not less than thirty (30) days’ Withdrawal Notice (or such longer time that we determine or as required by applicable law), if we determine, in good faith and in a normal course of business, to cease the operation of all 7-Eleven Stores in the relevant geographic market area (being the state or metropolitan statistical area (“MSA”) or similar designation as periodically established by the Office of Management and Budget or any replacement governmental office), or in a geographically separate area outside of a MSA in which the Store is located. You acknowledge that such determination and action will be “good cause” for termination. In the event of a sale, transfer or assignment of all of our right in the Stores in the area, or a decision by us to close the Stores in your area, you will have the right of first refusal, or of purchase, as the case may be, to be exercised within the first ten (10) days after you receive the Withdrawal Notice, to acquire and receive assignment of all of our non-proprietary rights in and to the Store, the equipment (specifically excluding, without limitation, the 7-Eleven Store Information System) and real property. Such right will be exercisable upon the same terms as agreed upon between us and a bona fide third party transferee, or in the absence of such an agreement, at a purchase price determined by an appraiser appointed by us and upon terms acceptable to us. If the purchase price is to be determined by an appraiser appointed by us, the decision of the appraiser will be final. All costs of appraisal will be shared equally by you and us. This Paragraph 26(d) does not apply if our agreement to sell, transfer or assign to a third-party our rights in the Store(s) in your area and/or the Franchise Agreement(s) related to such Store(s) contemplates that the Store(s) will continue to be operated as 7-Eleven Stores.

  (e) Transfer and Refund Rights.

  (1) In addition to the other grounds for termination set forth in this Agreement, this Agreement will terminate before the Expiration Date:

  (a) thirty (30) days before the loss of our Leasehold Rights;

  (b) if there is a condemnation (or transfer instead of condemnation) which results in our decision to discontinue operations of the Store as a 7-Eleven Store;

  (c) if there is casualty damage to the Store or 7-Eleven Equipment which we determine cannot reasonably be repaired or replaced within thirty (30) days; or

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  (d) the Store permanently closes because applicable law requires permanent closure of the Store, provided that the required closure is not the result of our or your acts or omissions.

  If this Agreement is terminated pursuant to this Paragraph 26(e), then for one hundred eighty (180) days following the date of such termination, you will have the right to choose either to transfer to another 7-Eleven Store available as a franchise (a “Transfer”) or to receive a refund of a portion of the Franchise Fee paid by you (a “Refund”), on the terms and conditions stated below, but you will not have the right to both a Refund and a Transfer. If, upon the expiration of such one hundred eighty day (180) day period, you have not elected to Transfer as provided below, you will be deemed to have elected to receive the Refund.

  (2) In order to elect to Transfer, you agree to either sign the then-current 7-Eleven Store Franchise Agreement for the new Store or complete a “Transfer Election Form”. If you elect to Transfer, and you meet the conditions set forth below, the Transfer will be completed within a reasonable time after you elect to Transfer, but in no event later than six (6) months after you elect to Transfer. If you are otherwise eligible for a Transfer, you also agree to meet all of the following conditions:

  (a) you are not selling or assigning your interest in the Store or transferring your interest to a third party pursuant to Paragraph 25;

  (b) you are not in Material Breach of this Agreement at the time of your election to Transfer;

  (c) you have had a Net Worth in an amount greater than or equal to the Minimum Net Worth required by Paragraph 13(d) for the one (1) year immediately before your election;

  (d) you execute and deliver to us the then-current 7-Eleven Store Franchise Agreement available for 7-Eleven Stores in the area in which the Store to which you wish to Transfer is located and a mutual termination of this Agreement and general release of claims, in a form substantially similar in all material respects to Exhibit H. You will not be required to pay a Franchise Fee under the new Store Franchise Agreement that you execute, and the term of such new Store Franchise Agreement will be equal to the term then remaining under this Agreement;

  (e) you have not been served with four (4) or more notices of Material Breach within the two (2) years before your election; and

  (f) you complete any additional training we request, but we agree to bear the costs for the training as provided in Exhibit D.

  If you have satisfied these conditions and you choose a Transfer, then the Transfer may be to any 7-Eleven Store you select (i) which is available for franchise, (ii) which has been open for business as a 7-Eleven Store for at least twelve (12) months, and (iii) for which you meet our then-current qualifications as we determine in our sole discretion. We will not be responsible for your moving or relocation expenses or any premium amount, broker’s fee or any other payment to a third party arising in connection with the Transfer.

  (3) If you elect the Refund, the Refund will be calculated by deducting twenty thousand dollars ($20,000) from the Franchise Fee you paid when you signed this Agreement; dividing the remainder thereof by one hundred eighty (180); and multiplying the result by the number of calendar months from the first day of the next month following the date you notify us of your election to receive the Refund through the month of the scheduled Expiration Date. If you are otherwise eligible for a Refund, you also agree to meet all the following conditions:

  (a) you are not selling or assigning your interest in the Store for a premium, or transferring your interest to a third party pursuant to Paragraph 25;

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  (b) you are not in Material Breach of this Agreement at the time you elect to receive the Refund;

  (c) you have had a Net Worth in an amount greater than or equal to the Minimum Net Worth required by Paragraph 13(d) for the one (1) year immediately before your election; and

  (d) you execute and deliver to us a mutual termination of this Agreement and general release of claims, in a form substantially similar in all material respects to Exhibit H; and (E) you have not been served with four (4) or more notices of Material Breach within the two (2) years before your election.

  (4) You will not have the right to a Transfer or Refund if (i) we terminate this Agreement for cause; (ii) you voluntarily terminate this Agreement; (iii) there has been a condemnation which results in our deciding to discontinue 7-Eleven operations at the Store and if you received any portion of a condemnation award as provided in Paragraph 8(d); or (iv) our Leasehold Rights expire and are not renewed or otherwise extended, or if our Leasehold Rights are terminated, as a result of your or your employees’ acts or omissions.

  (5) You agree that if one of the events giving you the right to elect a Transfer or Refund occurs, you will have no right to receive any damages from us, and the Transfer or Refund will be your only remedy.

  (f) Our Right to Assume Operation of the Store. We may enter the Store premises and take possession of the Store, 7-Eleven Equipment, Inventory, Receipts, Cash Register Fund, money order blanks, bank drafts and Store supplies and continue the operation of the Store for your (or your heirs’ or legal representatives’) benefit and account pending the expiration or termination of this Agreement or resolution of any dispute under this Agreement if: (1) the Store is not open for operation as provided in Exhibit D; (2) you die or become incapacitated, except as otherwise provided in Exhibit F (“Survivorship”); or, (3) in our opinion, a divorce, dissolution of marriage, or felony proceeding in which you are involved jeopardizes the operation of the Store or the 7-Eleven Image. On behalf of yourself, your heirs, and your legal representatives, you hereby consent to our operating the Store pursuant to the terms of this Paragraph 26(f) and agree to release and indemnify us from and against any liability arising in connection with our operation of the Store pursuant to this Paragraph 26(f).

  27. Mutual Termination; Termination by You.

  (a) Mutual Termination. This Agreement may be terminated at any time by written agreement between you and us.

  (b) Termination by You.

  (1) You may terminate this Agreement upon at least seventy-two (72) hours written notice to us (or shorter notice, if we accept it). If you elect to terminate this Agreement and provide us less than thirty (30) days prior written notice, you agree to pay us a termination fee in an amount equal to two thousand five hundred dollars ($2,500). We have the right to debit such termination fee to your Open Account.

  (2) Provided that you are not transferring your interest under this Agreement to a third party, then, on or before the ninetieth (90th) day following the Effective Date, you may terminate this Agreement upon ten (10) days prior written notice to us, and, if you execute a mutual termination and general release acceptable to us and comply with all other terms of this Agreement, we agree to refund, without interest, an amount equal to the Franchise Fee minus the training expenses stated in Exhibit D which we have reimbursed you for or paid on your behalf; provided, however, that you are not eligible for

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  this termination right and refund of the Franchise Fee if you are (a) a previous or renewing franchisee, (b) a franchisee who has a 7-Eleven Store Franchise Agreement with us other than under this Agreement, or (c) our former employee. This right to a refund of the Franchise Fee is in no way related to the Refund right described in Paragraph 26(e).

  28. Close Out Procedure.