Clashes between the franchisees and the company 7-Eleven have been growing from the past of a couple of days. The National Coalition of Associations of 7-Eleven Franchisees is advocating 7-Eleven to revise the 2019 Franchise Agreement. The pressure is to sign the proposed by next March and the majority would not only reduce franchisee net income, it would also increase store-level operating costs and force owners to stay open on Christmas Day.
Jay Singh, Chairman of the National Coalition, said, “Forcing stores to be open on Christmas is just another example of the lack of respect this company has for its franchisees.”
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 Keyes, 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.
Keyes said, “I learned so much from those franchisees in those few days we were together. 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,” 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 franchisees.”
