Company News

Franchisee Group Files Lawsuit Against 7-Eleven Inc.

Claims retailer did not treat store owners as independent contractors and business owners

SANTA CRUZ, Calif. -- The National Coalition of Associations of 7-Eleven Franchisees (NCASEF), which represents the owners of nearly 7,000 franchised convenience stores in the United States, has filed a lawsuit against 7-Eleven Inc. claiming that the franchisor has not fulfilled its promise of treating franchisees as independent contractors and business owners.

Members cite increasing management control by 7-Eleven Inc., including:

  • Taking away the opportunity of franchisees to possess or control monies generated from franchised stores.
  • Directing franchisees to sell any good or service for less than the cost of acquiring and selling it.
  • Requiring franchisees to use equipment 7-Eleven specifies to operate franchise stores.
  • Imposing a regressive royalty structure that penalizes franchisees for increasing sales.
  • Transferring responsibility for paying credit-card processing fees directly to franchisees.

The lawsuit, filed Oct. 12 in U.S. District Court for the Central District of California, challenges certain provisions of the 7-Eleven franchise agreement and seeks monetary damages, attorney’s fees and costs and other relief for claims relating to unpaid overtime wages and unreimbursed expenses.

Irving, Texas-based 7-Eleven Inc. operates, franchises or licenses 10,900 c-stores in North America, including nearly 9,000 in the United States.

NCASEF is the national trade association for 7-Eleven franchisees. Founded in 1973, it includes 46 franchise association members that represent more than 4,700 7-Eleven owners in 33 states. Its national office is in Santa Cruz, Calif.

Watch for more details in CSP Daily News.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Here’s the Foodservice Tech Convenience Stores Are Embracing

Features include helping maximize and forecast sales, aiding with production planning, automating tasks and more

Foodservice

Consider Challenges of a Dispensed Beverage Subscription Program

Profit margins, operational strain and program cannibalization are all concerns, says Richard Poye of Food Trends Think Tank

Tobacco

The Power of OTP Rises in Convenience Stores

Modern oral nicotine pouches continue to stand out as a key driver for 'other tobacco product' segment

Trending

More from our partners