Aussie Family Claim They've Lost Everything Over 7-Eleven's 'Sneaky Tactics' | 10 News+

They forked out more than a million dollars to become a 7 -Eleven franchisee, but after a decade in business, a Sydney family is being sent packing without a cent in compensation.

It claims it's the victim of ruthless corporate tactics.So, is it legal?We sent Sam Butler to find out.

7 -Eleven is going to take this store over after 10 years for free.It's not fair.We have a lot of customers at this moment that are happy here.These beautiful people that we are serving 24 -7 for the past 10 years.We did our best for the 7 -Eleven, for our business.

For the past decade, Pouya and his family have proudly served the people of Sutherland in Sydney's south.But at 6am this Wednesday, they're being turfed out of their service station by 7 -Eleven management.

We tried to sell here but they didn't approve our buyers and they just want to take it back for free.

The family invested more than a million dollars in 2015 to take over the franchise.

We were believing that the hard working is going to lead us to the security and we were thinking maybe we can continue working here or maybe we can sell it with a better price.

Instead, three weeks ago, they received this email.7 -Eleven does not intend to purchase the franchised business from you and you will not receive any compensation from 7 -Eleven in relation to the end of your tenure at the store.

After 10 years, we don't have any business.We think, OK, we have spent 10 years for what?All of that time, all of that mental health, well -being, working a lot.

They claim head office knocked back two legitimate buyers.So you feel like you weren't given a fair chance to be able to sell the business?Absolutely.

Absolutely.It wasn't fair, the behaviour that we had.done with us, it wasn't fair.

And when they tried to call out the convenience store giant...

This lady and this gentleman is a seven -level representative.They removed my sign.

Excuse me.Can I have my sign back?Late today, Pouya's brother was slapped with a breach notice ordering him to remove the sign by 2pm.When they didn't...We are taking sign again.He says his family is just the latest casualty of 7 -Eleven's ruthless corporate tactics.

Just last week another family we've spoken to was kicked out of their servo at Kensington in Sydney's east.They'd been 7 -Eleven franchisees for 18 years and now with no compensation they're worried about how they'll cover their next mortgage repayment.So is what 7 -Eleven is doing legal?

It's all about what the parties agreed to at the start.So what does their franchise agreement say?And typically a franchise agreement will say you're granted the right to operate a franchise for a certain number of years.And at the end of that, it's all over.

On its own website, 7 -Eleven spruiks its franchise model.There are more than 450 small family -owned businesses in the 7 -Eleven franchise network.The Australian chain was privately owned by the Withers and Barlow families for almost 50 years, until late 2023 when they accepted a $1 .17 billion offer from 7 -Eleven International, a joint venture of 7 -Eleven Incorporated and 7 -Eleven Japan.

7 -Eleven has gone through a change of management, change of control.When a new owner comes in, sometimes that means they rethink the model, they rethink whether they want to do franchising, and they also rethink how they want to position their business.

It's not the first time 7 -Eleven has been in hot water.Four years ago, it agreed to pay almost $100 million to franchisees who claimed they were misled.about the profitability of stores.

It's not a clear, straightforward path in respect to this, and parties really need to get good, independent legal advice.

7 -Eleven declined our request for an interview on camera today, only providing this statement.In relation to the franchisee of the Sutherland store, the term of their franchise agreement as extended expires on 17 June 2026.The license granted to them to operate the store ceases on that date.We are not in a position to provide further comment.Leaving Pouya and his family with little option but to say goodbye to the business they fought so hard to build.

I want to say to all of the customers, it was my pleasure to serve you and hopefully you can have a wonderful life.

Thank you so much.