7-Eleven faces questions over franchise closures | A Current Affair

But first, buy -in for hundreds of thousands of dollars get kicked out with nothing.It's what we are hearing over and over again from 7 -Eleven franchisees who say they're the victims of corporate greed.As an ex -employee blows the whistle on head office, the company insists it plays fair.We tried to get the CEO to speak to us, head office, to answer our long list of questions.They won't play ball.And we didn't think that was fair.

Fiona, Pippa from A Current Affair, we just want to ask you some questions about how you're treating your franchisees.

7 -Eleven Australia has a clear strategic ambition to be my convenient neighbourhood store for all Australians.

I know you want to be the convenience queen, but is this the inconvenient truth that you're ripping off these franchisees?

A CEO under fire.

How is 7 -Eleven treating their franchisees?Do you think it's fair to be ripping them off and taking away their livelihoods?

As a growing line of ruined ex -franchisees speak out against 7 -Eleven.

They are fully, I would say, a company who is narcissists.

An ex -employee blows the whistle on head office.

I was happy, obviously, working in the network with franchisees, but right now I'd want to distance myself immensely from what's going on.

And the outrage against 7 -Eleven's corporate greed grows.Sandeep Doar thought he was securing his family's future when he bought a 7 -Eleven franchise in Melbourne for nearly $400 ,000.As his 10 -year franchise agreement wound down, Sandeep said he wanted to renewbut was refused and told to sell his business instead.

So I found the buyer in May 2023 and I signed a contract with the buyer.The buyer paid me a deposit as well.

But Sandeep claims 7 -Eleven then told his buyer he couldn't purchase the store.With no buyer, Sandeep's agreement ran out and as their contract allowed, corporate took the store for free.

It was a deliberate act from 7 -Eleven to take my store and pay me nothing.

We presented like six buyers in the 12 months time they gave us and two more buyers in the following three months time as well and they all have been rejected for one or the other reason.

Madhu Nelly also tried to sell his Brisbane franchise he bought for $450 ,000.Head office told him his buyers didn't have enough managerial experience, even though one was a manager of a 7 -Eleven store.

He worked in 7 -Eleven store for five years, two years in Sydney and three years just next door to Kingston store.

Madhu even had an all -cash buyer, but he says that was rejected too.In the end, he lost everything.

It's like daylight robbery.

Lawyer Jem Panthake ran and won a class action against 7 -Eleven over claims franchisees were sold unprofitable business models.It cost the company $98 million in payouts.He believes 7 -Eleven could be in hot water in these cases.

The same people that are currently franchisees that were accepted by 7 -Eleven 10 years ago would still exist.no chance on today's selection criteria.

I mean, that's how they've got to where they are today.So these over 700 -odd stores, OK, has not come about as a result of some brilliant individual in the corporate world.Not at all.That's come about from blood, sweat and tears provided by franchisees.

This man is a former employee of head office.He worked there for almost two decades.

In those days if we had two or three or I mean at most say five or six corporate stores, okay, there was a lot.

Now there's hundreds, dozens taken over like Jarvits in Sydney South in a dawn raid.Corporate takeover franchisees didn't see coming.

I can't quite understand that because the whole The whole principle was all built around franchisees and families.

Online, viewers have been venting their shock and anger at the corporate giant's greed, calling for a boycott of 7 -Eleven corporate stores.At head office, it appears it's in damage control.CEO Fiona Hayes recording this video sent to franchisees.

And we want to transparently share some information from 7 -Eleven Australia's perspective with you.Over the last 10 years, where 7 -Eleven Australia has had leases in place, 95 % of franchise agreements have been renewed or transferred.

But that claim raised more questions.With head office refusing to answer any of our queries, we tracked down 7 -Eleven Australia CEO Fiona Hayes to Melbourne Airport, where she even tried to get in someone else's car to escape our questions.

We just want to ask you some questions for it.

But we're here on behalf of the franchisees because they say they've lost their livelihoods because you've taken back their stores for free.If you say it's just 5%, why not pay them out and avoid all of this?Do you think your franchisees are getting a fair return on investment?We've tried to ask your head office for interviews all week.

Right now, there's more than 70 franchises available for sale on the 7 -Eleven website, ranging in price from hundreds of thousands of dollars to millions.Many franchisees just trying to sell before they lose it all.

What you want to say is that you treat your franchisees fairly?Because I wouldn't say that this is fair.I think families losing their livelihoods isn't particularly fair.Well, a lot of them are frightened right now.They think you're going to take their stores, like you did the other day in Sutherland when we were there.You took the store, Javed bought in for a million dollars, and now he lost it all.

He lost a million dollars.How would you feel if you lost a million dollars?

Our society doesn't stand for unfairness like this.And if you're looking for injustice in the commercial world, you need look no further than franchising.

You took my money, give me back.

We asked again for a sit down with the CEO.Instead, we were sent another statement from a spokesperson.Effectively, 7 -Eleven stands by its franchise model and it wants to work with franchisees on any questions about their agreement.I don't think those words match their actions.