7-ELEVEN Franchise Lawsuits 2013

21 thoughts on “7-ELEVEN Franchise Lawsuits 2013”

• As a 7-Eleven franchisee of almost 24 years
  I can confirm that my franchisor has, in my opinion,
  Declared war on its franchisees.
  The company has hired many MBAs who are
  Of the opinion that its franchisees are corrupt
  and paint us all with this same broad brush.
  They’ve made it more Andorra difficult to
  Increase our income. Their philosophy is
  To gain multiplicity by forcing onerous contracts
  On new zees, forcing them to go multiple
  To make the same income as one store
  Under 2003 contract which mandated a 50-50
  Split. New agreements mandate a graduated
  GP% split. The more GP$$, the more they
  Take on their side of the ledger.
  There’s no incentive to grow your business.

  Furthermore, they have no regard for the
  Encroachment on existing store by building
  New stores within 1/2 mile distance and
  Closer.

  This is certainly not the same company I originally
  Signed with almost 24 years ago. Corporate
  Greed has taken the reigns and MBAs are
  Ruining my business!

  Jack Rugen
  7-Eleven Franchisee
  Editor Soundwave, published by UFOLI

• In the immortal words of the West Point chorus: If you don’t like it leave…..such shortsightedness by a desperate management crew in Dallas makes me wonder how much longer this once proud company can last. Rapid expansion with NO investment in a base of proven locations while the regional competitors methodically grow and engulf key markets causes me to believe that the future holds 12000-15000 below average performing “branded bodegas” with poor proprietary products and mega performers of Wawa and QT et. al. kicking butt all over the place…..all glued together by “stuck” franchisees with no hope.

• I will just reiterate what was said above:

  The franchisor has declared war on its franchisees and
  basically condemning the franchise system. They are not supporting their own franchisees and are, in fact, making intelligent investment by prospective franchisee impossible.

  There’s no incentive to grow your business.

  Furthermore 7-11 Inc. has no regard for the
  encroachment on an existing store by building
  New stores within 1/2 mile distance and
  Closer. They are not supporting their own franchisees

  This is certainly not the same company I originally
  Signed with almost 33 years ago. Corporate
  Greed has taken the reigns. My location is worth half
  what it was worth 5 years ago.

  No intelligent person would invest in a franchise built on the current
  principles.

• And all the franchise marketing (money provided by current franchisee’s) seems aimed at “professionals”. This proves that the 7-Eleven management see’s themselves as smarter and superior to others…..no half brained ‘professional’ after doing the numbers would buy into the current system. Adding further credence to the lawsuits claiming SEI has damaged the brand.

• Unfortunately, alotta prospective zees don’t
  Or are not willing to do the due diligence required toake an
  Informed decision. And, those existing zees
  Who wish to go multiple are certainly
  Contributing to the devolution of the 7-Eleven
  Franchise system.

• I know in my own case net income from a single store is dropping like a rock. My peak years were 1999-2001. Going multiple is NOT a solution. I know how to make $$$ butthe current system wwon’t allow that.

• There hasn’t been any good work to expand the customer base for at least 10 years…. The current management team seems content to follow the marketplace, rather than to lead it. Now grow the store base on top of a declining consumer base, and you put a big strain on the business model.

  The mgmt. team can buy time by transferring financial obligations to franchisees, and saving money on services provided to franchisees, and they are doing all of the above. Many challenges on the brand will ultimately impact franchising, and that will lead to change…… just hope that the enterprise is recoverable by the time they get to that point.

• My income has been dropped since 2008 also. The sales is up, profit is down. There is no way to verify the bill back amount, ATM money, etc because 7-11 is not allowing the down load of the store ring up transaction. Just they give me the result data only. NO VERIFY function is available. That’s why we are the employee.

• Falcon
  I agree with you, my income is down since 2009 and sales are up almost $205000.
  this does not make sense.
  I also feel like a employee, I guess it feels more like a 7-11 Manager.

• Falcon
  I agree with you, my income is down since 2009 and sales are up almost $205000.
  this does not make sense.
  I also feel like a employee, I guess it feels more like a 7-11 Manager.

• i own a 711 in new york .my fc was a crazy bitch all she was doing to hurt my business and all the time she was keep saying my store look like shit …she never help me to increase my sale and i and my empolyees were working hard days in days out ..yes you guys are right sales going up and profit going down ..because we deposit all money into their account they give us profit what ever they desided..

• This is the worst company i ever invested my money in to. i have two other franchisees and they at least appreciated what you do day in and out for making money and giving them royalties to earn their pay. but with 7-eleven the harder you work the less you make which is hard to believe and i been looking at my bottom line its going down especially after the gas commission split change back in 2010. now its shit commission of 1.5 cents a gallon i waste more money on landscaping, and garbage bags a month than i make its not worth doing any work for this Japaneses ass wholes. i don’t see any change coming to benefit franchisee its only going to get worst month after month the sooner you get out better it is. before they come to your doors to take the keys because they have a right to kick you out any time they want without any explanation you give them a keys back and says good luck staying a float for next five years. i think they going to go belly up with in five years after stealing franchises life savings. that’s how karma comes around and i hope all this top management gets prosecuted in US courts by misleading their franchisees when they were going to their company organized seminars and their Franchisees Directors who were cheering to get you the store and stole your money just to get their bones.

• Sorry Andy
  I know what you mean with gas commission and other issues going on. The more you work the less you make.
  Let’s make the Las Vegas Experience in late January the 7-11 Corporate only employees experience.
  Franchisees don’t go to Vegas.

• Maybe the National Coalition should re-elect Bruce and continue the good times!

• Never happen it again Dick, I thought that 7-11 will be paid back in the future on what they are doing now. If FZ doesn’t make enough money( – at least without reward on they invest money, effort, time, etc), they will start to quit the store. As I know, one of the store which taken back by 7-11 last year, they lost $130,000 over the 6 months.

• Hello everyone,

  We are a local community group here in NYC fighting a large wave of incoming 7-Elevens. We are currently working on a series blog posts about 7-Eleven franchisee experiences – what was promised vs what was delivered – and we’d love to hear your stories.

  If you’re interested in sharing your story please contact us at [redacted] and a writer will be in touch.

  Thank you!

  No 7-Eleven

• I wish I joined this club a while ago. Reading all these personal stories and experiances made me feel that I am not the only one going through these company’s abuse, mischiefs, and mistreatment. We can do something positive collectively.

• There are two real stake holders inside of this enterprise….shareholders and franchisees.

  I find it odd that employees who come and go, yield all of the decision making for how to build the consumer base and strengthen the brand. I guess what is odd is that the stake holders have allowed these guys to deteriorate the customer base for 6 consecutive years now….

• The stake holders and Military gang simply don’t give a rat ass about the Franchisees as long they are seeing the big $$$$ signs that are coming in at the expense of all those individuals who buy a job.

• Wow! Nice. Franchisees taking a stance. Unlike Discovery Point Franchisees. Other than Duttas and Millers, all went bankrupt without protesting. Perplexed- Discovery Point needs big money to get in and franchisees are professionals with Ph.D., MBA, and Masters degrees. A childcare business appeared to be an honest business to them and they were duped by a college rusticate. Cliff must have had immense pleasure in torturing the degree holders with family and kids, which he could not get himself.
  It was framed so nicely with bank involvement that no one suspected anything wrong. Most of them were successful immigrants and did not know that lie was allowed in the US marketing and sales. It is legal to lie and it is responsibility of the buyer to not to fall for it- ridiculous but that is what arbitrator Richard M. Asbill said and it cannot be contested.
  Banks in NC, please be careful about SBA guaranteeing the upcoming center in Raleigh- 1212 Heritage Links Drive, Wake Forest, NC 27587, 919-607-8512

  Discovery Point did not mark the SBA guaranteed loans as franchised loans to hide the failure rates. SBA should refuse guaranteeing these loans as there was fraud involved.

• Dear, 7-Eleven Employee’s
  Blowing the Whistle on Privacy Act/Data Breach
  7-Eleven failed to keep 7-Eleven Employees’, personal information safe
  A former female corporate employee at Dallas corporate office headquarters was fired due to retaliation and unlawful termination. During scope of her employment, her personal information was breached, by a contractor without her consent.
  Individual involved leaked her information and breach came down to harm her in many ways. Potentially responsible management did not pay attention to her concerns.
  Later on, former female corporate employee discovered that 7-Eleven (IT) information technology department was failing to secure ALL 7-Eleven employee’s (PII) personal private information like social security #, date of birth, pay, dependants information, which indeed violated many federal laws, like Privacy Act of 1974, Privacy Principles, data breach and their own security policies.
  Former female corporate employee raised her concerns ongoing, with respect to her privacy safety and security and respect to rest of ALL 7-Eleven employees’ security privacy.
  Former female corporate employee raised her concerns to management which she believed to be data breach. Months later, management Individual’s involved in wrong doing claimed to have done nothing wrong with keeping up with employee personal information. Dispute to the fact, former female corporate employee provided evidence of the violations.
  Disputes to her valid concerns, management individual’s involved in violating the federal laws of keeping employee’s information secured resulted in to covering up the situations with false statements.
  Former female corporate employee has struggled a lot mentally and emotionally due to retaliation and unlawful termination.
  Former female corporate employee recently was at Baylor emergency due to SUICIDE reason, caused by INVASION OF HER PRIVACY and also with emotional stress due to retaliation and unlawful termination.
  7-Eleven could do a better job with understanding the root cause of the issue, including protecting corporate employee victim from invasion of privacy harm caused by unfair work practice; rather than retaliating and terminating the employee who tried to blow the whistle.

  7-Eleven failed to follow federal privacy policies and their own security policies for securing all employees’ secured information.
  Necessary, legal action is being taken to protect former female corporate employee, who has and still facing many harms.
  At this time, when concerns about the privacy and security of electronic health records is a hot topic.
  We allege that 7-Eleven knowingly and repeatedly violated (PII) privacy personal information, HIPAA law and failed to take necessary action in protecting employee’s personal information
  ANY 7-Eleven former and or current employees’ who could be exposed to identity theft, lost of confidential financial information, may be due to un-protected information being stored in 7-Eleven systems AND may not be aware of what caused it.

  Feel free to leave your comments at : [redacted]