USA: Franchisees Urge 7-Eleven to Revise Terms of New Agreement

USA: Franchisees Urge 7-Eleven to Revise Terms of New Agreement

The National Coalition of Associations of 7-Eleven Franchisees (NCASEF) is urging 7-Eleven Inc. to revise its 2019 franchise agreement.

Tensions have been mounting between the convenience-store retailer and its store owners over the agreement and other issues.

The proposed agreement, which approximately 19% must sign by next March and the majority within the following five years, would not only reduce franchisee net income, the group said in a press release. It would also increase store-level operating costs and force owners to stay open on Christmas Day, NCASEF said.

The new agreement “further enhances the pervasive control 7-Eleven already exercises over its operators,” the group said in a previous statement. For years, the company has been eroding franchisee profitability by increasing operating costs. Now, 7-Eleven is aggressively advising franchisees to sign the new deal immediately before its terms get worse.”

The coalition has sent a letter to Joe DePinto, CEO of 7-Eleven Inc., formally requesting all deadlines to sign the agreement by Dec. 31 be removed, and terms be revised to create a more favorable outcome for all parties.

NCASEF has highlighted 45 areas of concern in the agreement, which it said would have a negative effect on franchisee profitability, independent contractor status and legal recourse in the event an owner makes a claim against the company.

“7-Eleven enjoys a strong, productive relationship with independent franchisees, which is one reason why Entrepreneur magazine selected 7-Eleven as the 2017 Franchisor of the Year.” “The national coalition is clearly out of touch with the majority of 7-Eleven franchisees. Less than 1,300 franchisees attended the national coalition’s recent meeting, which is not representative of the almost 4,800 franchisees in the 7-Eleven system. During the past 10 years, the 7-Eleven brand has generated over $15 billion in earnings for franchisees across the country. In fact, last year 7-Eleven franchisees collectively earned more money in a single year than ever before. We believe the 7-Eleven 2019 agreement allows franchisees to continue to grow their independent businesses. 7-Eleven franchisees clearly agree, as a large number are already in the application process.” Source: CSP PWKD09082018

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Last modified onSunday, 26 August 2018 15:23
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