7-Eleven franchisees have to pay up to stay in business


« Back

7-Eleven franchisees have to pay up to stay in business
 07.31.2018 20:38

Retailwire.com

 

7-Eleven Franchisee Baljeet Dhadwal opens his first store in Sunset Suisun City, CA. - Photo: 7-Eleven

   

Jul 26, 2018

by Matthew Stern

Matthew Stern

If 7-Eleven franchisees want to keep doing business under the chain’s moniker, it’s going to cost them, thanks to some controversial new stipulations in the company’s franchise agreement.

7-Eleven franchisees will be expected to pay a $50,000 renewal fee in accordance with the new deal, which goes into effect in 2019, according to the Orlando Sentinel. Stores will also be expected to share more revenue with corporate (up to 59 percent for higher-performing stores) and to stay open on Christmas.  The chain asserts that franchise owners made more money last year collectively than ever before. The conflict with corporate has caused concern and outrage at the National Coalition of Associations of 7-Eleven Franchisees convention in Florida.

The latest blowback against 7-Eleven corporate is not the first big disagreement between franchisees and the home office.

Late in 2017, the same 7-Eleven franchisee group holding the convention (which represents almost 7,000 U.S. stores total) sued the parent company, according to Convenience Store Decisions. The lawsuit alleged a power grab by management that was removing stores’ ability to hang on to money they generated, causing franchisees to take a hit on pricing and cover credit card processing costs among other complaints.

But the lawsuit, which hinged on the organization’s belief that franchisees were mischaracterized as independent contractors rather than employees, according to CSP Daily, was thrown out earlier this year. The court concluded that a franchisee agreement alone does not create an agency or employment relationship. 

The changes to the franchisee agreement come in the wake of some other unprecedented moves from the home of the Slurpee. In January, 7-Eleven announced the acquisition of 1,030 stores previously owned by Sunoco. This represented the largest acquisition in 7-Eleven’s history, boosting the total store count up to around 9,700 in the U.S. and Canada.

The chain has also been pursuing technological enhancements to keep pace with rising customer demands for convenience. Last year, 7-Eleven began testing a mobile app at 10 locations in Dallas, Texas that allowed for pickup and delivery.


- Это интересно
How much does consulting cost?
News
02.10.18
Venture and growth investors are doing a lot to speed up the rise of these worker-bots. So far this year, they’ve poured hundreds of millions into developers of robotic process automation technology, the term to describe software used for performing a series of tasks previously carried out by humans.
02.10.18

What if blockchain turned out to be just what emerging economies were after?

 

02.10.18

While Clinton certainly did not appear to be a Shingy-esque blockchain evangelist onstage, he delivered a targeted amount of enthusiasm about new technologies like blockchain and artificial intelligence in enhancing accessibility and shaping the country’s economic future.

02.10.18
It might be the only way we can break Facebook’s hold on our lives, it could cement Apple’s reputation as a privacy-minded service provider, and more importantly, it wouldn’t be that hard to get people to use it.
02.10.18
Instagram’s co-founders announced that Adam Mosseri, the platform’s vice president of product, is now in charge. Mosseri will oversee all functions of the business and recruit a new executive team, Kevin Systrom and Mike Krieger said in a statement. The co-founders announced their departure last week — more than six years after Facebook purchased the company for $1 billion. “We remain excited for the future of Instagram in the coming years as we transition from being leaders at Instagram to being just two users in a billion,” said Systrom and Krieger.
Address:
1288 East 19th Street Apt.
Suite # 7B Brooklyn NY 11230