7-ELEVEN Franchisee Tariq Khan: Villain or Victim? Are you familiar with long-time 7-Eleven franchise owner Tariq Khan? Please share a comment or opinion below.
Prior to June 21, 2013, Tariq Kahn was a prominent franchise success story, a Pakistani immigrant who came to America with $300 and built a profitable empire of 7-Eleven convenience stores and other businesses in Long Island, NY.
Before June 21, Mr. Kahn was celebrated in the press for his outspoken advocacy for his fellow 7-Eleven franchise owners, for his charity fundraising and support of such causes as a Long Island food bank, muscular dystrophy, and independent living for the developmentally disabled.
Most recently, Tariq Khan was credited with leading the effort to save and restore a golf course ravaged by superstorm Sandy.
On June 21, without warning (according to Khan), 7-Eleven pronounced that Tariq Khan was a thief who had been cheating them for years.
According to a Tariq Khan Declaration, 7-Eleven stormtroopers (aka 7-Eleven’s “Asset Protection” team), without any notice, warning, or discussion, turned Tariq Kahn’s life and his family’s life upside down.
They converged on Tariq Khan’s five 7-Eleven stores and “proceeded to remove, without any legal rights, all prepaid phone and gift cards, as well as the money order machines. Within a few more hours… lottery machines were also removed… despite the fact that they do not belong to 7-Eleven.”
That same day, 7-Eleven sent Khan a “a Non-Curable Notice of Material Breach and Termination.” Under this letter, 7-Eleven asserted that they had immediately terminated the franchise agreements for all of his stores… without citing any provision in their franchise agreements allowing them to do so.
Despite Khan’s “long-standing productive and mutually beneficial relationship with the 7-Eleven franchise since 1988,” 7-Eleven stated it was terminating the franchise agreements for “alleged misconduct including skimming profits, under-reporting sales and labor violations.”
The media instantly began reporting 7-Eleven’s allegations, leading with headlines that both sullied Tariq Khan’s business reputation and unavoidably blended allegations against Khan with unrelated immigration cases involving 7-Eleven franchisees being reported on in the same region:
“7-Eleven sues NY store owner, says siphoned money” Wall Street Journal
“7-Eleven Sues LI Store Owner For Siphoning Money” The Epoch Times
“7-11 sues NY store owner, says siphoned money” NewsWest9.com
“7-Eleven sues franchise owner of 5 NY stores, alleges siphoned money for years” Daily Journal
“7-Eleven Sues Long Island Franchisee for Siphoning Money” Convenience Store News
“7-Eleven Sued Franchisee, Says That He Hid ‘Hundreds Of Thousands Of Dollars’ Of Sales From The Chain” – FierceRetail
“Suit Claims Former 7-Eleven Franchisee Leader Khan Siphoned Off Funds” Brooklyn Roundup
Why would 7-Eleven take such drastic, irrevocable action against such a prominent, 25-year franchisee?
According to Khan’s declaration:
The underlying motivation for 7-Eleven to file this action clearly stems from my activity as a proponent of franchisees’ rights and my Pakistani descent. These allegations against me and my family are again simply baseless and shocking and I categorically deny any such wrongdoing. I am convinced that these allegations are being made in retaliation for my long time, active involvement in the various franchisees ‘ organizations, and my vocal criticism of various actions taken by 7-Eleven upper management to the detriment of 7-Eleven franchisee owners.
According to Khan, the personal attack on him is not an isolated incident, but rather part of a larger 7-Eleven campaign to oust outspoken franchisees.
He states:
This concept of vindictive and retaliatory conduct by 7-Eleven is supported further by their simultaneous suit against another vocal proponent of franchisee rights in New Jersey -making the instant suit far from unique. In an almost identical suit being prosecuted by Plaintiff in the District Court of New Jersey (filed only two weeks ago), 7-Eleven is trying to rid itself of another franchisee “troublemaker.” 7-Eleven, Inc. Karamjeet Sodhi, Docket No.: 3:13-cv- 03715…
In the above suit, Karamjeet Sodhi, the president of the Metro New Jersey Franchise Operators Association, an entity whose primary purpose is to advocate for 7-Eleven owners in their disputes with 7-Eleven corporate management, is being sued by 7-Eleven in their effort to take away his six 7- Eleven franchises that he has owned and operated for many years.
While some defendants in other recent 7-Eleven actions have been dismissed by our commenters as cheaters who deserved what they got (7-ELEVEN Franchise Lawsuit Against Franchisee Pursharth Kapoor), Tariq Khan is not so easily dismissed as a franchise cheater undeserving of prior notice or a chance to respond or cure, considering:
Also read:
7-ELEVEN: Is 7-Eleven a Good Franchise to Own?
7-ELEVEN Franchise Owners Complain, Allege Churning
7-ELEVEN Franchises Raided by DOJ, Homeland Security
7-ELEVEN Downplays Japanese Ownership
7-ELEVEN Franchise Lawsuits 2013
WHAT DO YOU THINK? ARE YOU FAMILIAR WITH THE TARIQ KHAN AND THE 7-ELEVEN ASSET PROTECTION PROGRAM? SHARE A COMMENT BELOW.
TAGS: 7-Eleven, 7-Eleven franchise, 7-Eleven lawsuit, 7-Eleven lawsuits, 7-11 franchise, 7-11 lawsuits, 7-11 complaints, Long Island 7-Elevens, Tariq Khan, Tarik Khan, Tariq Khan lawsuit, Tarik Khan lawsuit, convenience store franchise, 7-Eleven litigation, 7-eleven franchise complaints, Einbinder & Dunn, attorney Michael Einbinder, 7-Eleven Asset Protection
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View Comments
There is far more to the issues between Mr. Kahn and 7-Eleven Inc.
As a past multiple Franchisee i have seen much on both sides with merit. It seems that SEI is intent on "changing the 7-Eleven culture" by any means.
I was basically forced out of the 7-Eleven system for highlighting what I believe were (and still are) multiple trade violations being perpetrated by 7-Eleven upon Franchisees.
7-Eleven has in the past and is now violation IRS code by exercising EXTREME influence and control over franchisees, who are now in fact 7-Eleven employees rather than "independent contractors".
I have to agree with "Former 7-11 Franchisee", I know Tariq Khan, I served with him and under him in many of the activities for which he was awarded a place on 7-Eleven's "Wall of Fame". I did not always agree with Tariq, in fact he and I had our public and private differences, but I will never doubt his energy and commitment to franchisees and the franchise system. Do I think suddenly he is a pariah? Well the timing is interesting, first the federal government raids some east coast stores alleging some serious claims and in short order 7-11 is PRE-EMPTIVELY seizing franchised stores. It does make one go hmmmmmmmmmm. If he and Sodhi are such "bad guys" and as 7-11 claims this has been going on for years....what took so long? Could it be 7-11 had something to gain from "looking the other way?" In all of these allegations one has to ask "What did 7-Eleven know and when did they know it?" Why was 7-11 "hell bent" on influencing the last election of the National Coalition? Could the upcoming election in October have had a bearing this action? Inquiring minds need to know!
i do not support or condone the terrorist type actions of the S.E.I. police force.
All employees and franchisees deserve their day in court to dispute any charges brought against them. the foundation of our nation and the spirit of the ( partnership relation between the franchisees and S.E.I.) should demand the respect and consideration of S.E.I. to achieve that end.
I am very concerned and fearful that these kinds of actions be S.E.I. are a prelude to frivolous and groundless removals in the future purely for profitable reasons.
Well I have been reading all the 7-Eleven accusation against the FZ's and I have decided to atleast share our experience with this mafia's(7-Eleven) who not only threatens FZ's on a daily basis but also use the policy of divide and rule,and bribe individuals to attack on FZ's.If anyone takes or ask personally to any FZ's I bet you will get the real background of this SEI company.They are the biggest thiefs in this world yet they blames poor FZ's who works 7 days 16 hrs a day throughout the year.
I hope all the franchisees should unite against SEI wrong policys and forced tactics . I have one request to all 7-Eleven FZ's throughout USA to take a stand against this company otherwise they will treat you worse than what they treating you guys.They know all the immigrants who owns 7-eleven only relies on 7-eleven income only and they can not afford to hire attorney. But if all the franchisees unite toghether they can make and bring change and operate their business peacefully.
So request is UNITE and fight against wrongfull tactics.
DON'T BE COWARD IF YOU CANNOT UNITE YOU WILL BE NEXT VICTIM
Don’t tell me that 7-Eleven cares about it’s franchisee… Corporate is stealing from franchisee, just that they are smart at doing it'
Please encourage your fellow coward franchisees to get UNITED or else take shit from SEI and feel good and regret.
Request is only UNITE throughout USA
Show them the unity atleast and stand up for right things.
With Discovery Point franchise experience, I now know that churning is more profitable for the franchiser than the same franchisee continuing. Discovery Point made more than $500K in each churning, if not in Millions with each churning. That is not possible with collecting royalties from a franchisee. Churning is easy money and the way Franchise rules are setup, franchiser does not need to disclose churning. Franchiser can buy and sell the same franchised location with a different business name and that does not need to be disclosed in the FDD.
Not sure how much 7-11 will make from this churning, but to have a new franchisee with new franchise fee as well as new life savings of $200K from the new franchisee to the franchiser is lucrative enough to keep churning. Moreover, the new franchisee will be innocent and will buy expensive supplies from the franchiser making more profit for the franchiser.
I don't run a dishonest store and this do have hurt us enough
7-Eleven has ceased operating as a franchiser/Franchisee business partnership and is now seeking to turn all of it's franchisees into employees. Due to the financial strains that have been felt on both ends, 7-Eleven has chosen to scream Non curable breach on franchisees across the nation on issues that were never even brought up before or allowed to be given a chance to cure. Point in fact- all non curable breaches have been brought against multiple store owning franchisees. THIS allows 7-11 to STILL make money while spending on legal fees if they are able to cease the stores and sell them. Basically making a 2 for 1 profit. They are breaking their own contract terms, acting like the KGB and unlawfully interfering with a franchisee's day to day operations which is over reaching according to their own contract terms and soliciting people by bribing them with corporate jobs for false information. We must UNITE and put a stop to this... before the 7-11 culture completely changes and all franchisees are driven out of the system OR turned into EMPLOYEES of corporate!!! Don't sit back and let your self be bullied into losing a business you have put your blood, sweat and tears into to build and still made corporate money year after year. They have NO RIGHT to come and bamboozle ANY franchisee this way. EVER!.
7-Eleven has ceased operating as a franchiser/Franchisee business partnership and is now seeking to turn all of it's franchisees into employees. Due to the financial strains that have been felt on both ends, 7-Eleven has chosen to scream Non curable breach on franchisees across the nation on issues that were never even brought up before or allowed to be given a chance to cure. Point in fact- all non curable breaches have been brought against multiple store owning franchisees. THIS allows 7-11 to STILL make money while spending on legal fees if they are able to cease the stores and sell them. Basically making a 2 for 1 profit. They are breaking their own contract terms, acting like the KGB and unlawfully interfering with a franchisee's day to day operations which is over reaching according to their own contract terms and soliciting people by bribing them with corporate jobs for false information. We must UNITE and put a stop to this... before the 7-11 culture completely changes and all franchisees are driven out of the system OR turned into EMPLOYEES of corporate!!! Don't sit back and let your self be bullied into losing a business you have put your blood, sweat and tears into to build and still made corporate money year after year. They have NO RIGHT to come and bamboozle ANY franchisee this way.