7-Eleven Franchisees Are Concerned About Their Future
The relationship between 7-Eleven and its store owners has been deteriorating for years. 7-Eleven recently unveiled a new franchise agreement, which the company is applying heavy pressure for franchisees to sign by the end of the year. The new agreement will make it increasingly more difficult for franchisees to realize a profit for their hard work and dedication to the 7-Eleven system. Franchise owners are now facing an impossible decision regarding the future of their businesses and their livelihoods.
New Franchise Agreement Provisions
- $50,000 franchise renewal fee, among the highest franchise renewal fees known to exist in the U.S.
- Gross profit split now gives 7-Eleven as much as a 59% share off the top, even as franchisees must absorb higher operating costs.
- Franchisees are now responsible for maintaining aging store equipment they don’t own and which 7-Eleven won’t replace.
- No guarantees that the cost of goods franchisees receive from the 7-Eleven supply chain will be lower than what they could buy at a local big-box retailer.
- One-sided legal provisions that force franchisees to pay 7-Eleven’s court fees even if they win their case, give up their right to a jury trial and are subject to the governing laws of the state of Texas regardless of where they operate.
- Mandatory opening 7 days a week, 24 hours a day, 365 days a year. Franchisees no longer have the option to close on Christmas Day.
7-Eleven Franchisee Satisfaction Survey
A new survey of 7-Eleven franchise owners shows the growing divide between the franchisees who operate 7-Eleven stores and their corporate management. This Franchisee Satisfaction Survey was sent to over 5,300 franchised stores. Evident in the survey results is an overall sense of mistrust in 7-Eleven corporate management as well as the belief that those in power do not have the best interests of franchise owners at heart.
Following are the questions and results: