UNIVERSAL CITY, Texas -- 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 Inc. did not respond by posting time to a CSP Daily News request for comment on the group’s latest press release. But the company recently provided this statement concerning tensions between franchisees and 7-Eleven Inc.: “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.”
It continued, “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.”
NCASEF, Universal City, Texas, is the national trade association for 7-Eleven franchise owners. Founded in 1973, it includes 44 franchise association members that represent more than 4,600 7-Eleven owners in the United States.
Irving, Texas-based 7-Eleven operates, licenses or franchises more than 66,000 stores globally. The retailer is No. 1 on CSP's 2018 Top 202 ranking of c-store chains by number of company-owned retail outlets.