Market Overview

7-Eleven Franchise Owners Urge Corporation to Revise Terms of its New Agreement


The National
Coalition of Associations of 7-Eleven Franchisees
is urging 7-Eleven
to revise the 2019 Franchise Agreement it is pressuring store owners to
sign. The proposed agreement, which approximately 19 percent must sign
by next March and the majority within the following five years, would
not only reduce franchisee net income, it would also increase
store-level operating costs and force owners to stay open on Christmas

"Forcing stores to be open on Christmas is just another example of the
lack of respect this company has for its franchisees," said Jay Singh,
Chairman of the National Coalition.

Today, the Coalition sent a letter to CEO Joe DePinto 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.

Tensions have been mounting between 7-Eleven and its store owners for
years. CEO Joe DePinto, who took over in 2005, has cut off communication
with the National Coalition, an independent, franchisee-run association.
DePinto's predecessor, Jim
, recently addressed franchisees at the Coalition's national
convention in Orlando and reminded them how – even during tough times –
he found value in direct engagement with the franchisee community.

"I learned so much from those franchisees in those few days we were
together," said Keyes. "I learned that it wasn't personal. We had to
find a way to make money at each individual store because the company
was only going to be as successful as the success of each individual
franchisee," said Keyes, who also reminded the audience of the words
inscribed on the wall at 7-Eleven's company headquarters in Japan:
"Respect your stakeholders. Respect your customers. Respect your

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

"We urge DePinto to order his executive team to meet in good faith with
franchisees with the goal of making changes to this agreement and
demonstrating their respect for the hard-working men and women who
represent this brand," said Singh.

About the NCASEF: The
National Coalition of Associations of 7-Eleven Franchisees
the national trade association for 7-Eleven franchise owners.
founded in 1973, NCASEF is comprised of 44 Franchise Association members
who represent more than 4,600 7-Eleven owners in the U.S.

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