Devastated franchisees speak out against 7-Eleven | A Current Affair

They bought a 7 -Eleven franchise, worked 24 -7 to build it up, then head office swooped in and took it back.All Jyotika and Sunny wanted was stability for their family.Instead, they were kicked out with zero compensation.They walked away with nothing.And it seems to be a pattern with this greedy global corporation.

We were the frontliners of them.We built their business.They did not build it.

So there's a large power imbalance.Franchisors behave like they are the champion of small business.

Biggest mistake to buy 7 -Eleven?It was our biggest mistake.

We're broken at this point.No.

For seven days a week, 52 weeks a year for the past decade, Jodhika and Sunny Sharma have been the friendly faces at their 7 -Eleven store.

Yes, it was a great business model.It worked for everyone.We were Business owners, we were our own bosses, no one to tell us what to do.

But now the business owners have been turfed out and left with nothing.All my hard work has gone down the drain.

You leave, you get very little for your store, or nothing.Franchisor resells the store and they have a windfall.

The Shamas have been proud 7 -Eleven franchisees for almost 20 years.They bought and later sold two 7 -Elevens in Sydney's west, before they purchased the Kensington store in Sydney's east.

In 2015, we paid $775 ,000 in goodwill and another $110 ,000 of thereabouts in...

yeah.

Approximately in franchise fees.

7 -Eleven offers its franchisees 10 -year agreements.With the 2026 expiry approaching, Jodica said she was offered another 10 years.So she started pulling together the paperwork required, only to then get a call which shattered their world.

And before my due date, I was called again at the office and I was notified that they have changed their mind and they cannot go forward with me.The reason said because of COVID, my sales had gone down.

Jodika was told her only option was to sell the franchise.

I've gone through the suffering and I've taken all the losses and everything.Now when it's about to boom, you are taking the store away from me.

How stressed are you right now?

11.

The couple say they brought forward multiple buyers but they were knocked back by head office or didn't proceed.Now their franchise agreement is up and they've been sent marching orders with zero compensation.The store now corporate owned and run.

Just pay us out.We will have no means of living, earning.Just pay us out.

The couple's long term customers shocked by the news.

Everyone loves them.So, you know, they're great people and they do the right thing by everyone.

I just heard the news.I'm heartbroken.How could they do this?

I mean, I've been coming here for a while and they've always provided great service.

I still have my faith, but it's more leaning towards fear with how I'm going to support my family.and my family.

And it seems to be a familiar story amongst 7 -Eleven franchisees.Sukdeep and Garry used to own the franchise in Regentville near Penrith in Sydney's West.They bought in for $890 ,000.

It was never a dream of becoming a billionaire or making, but I don't want stability.But in the end, you know, We have been robbed.7 -Eleven robbed us of our livelihood as well and the goodwill.It was very, very unfair.

They also tried to sell their franchise but say 7 -Eleven wasn't happy with the buyers.The sale fell through, their agreement expired and they lost everything.So you lost $890 ,000.Yep.Yep.

Big money.No misconduct, no breach.We didn't do anything wrong.

7 -Eleven corporate taking back the store for free and now running it itself.

I was like, why are you doing wrong?This is injustice.

More than 750 stores make up 7 -Eleven Australia, which was originally owned by the Withers and Barlow families in Victoria.They sold in 2023 for a cool $1 .7 billion.Now it's owned by 7 -Eleven International.Fiona Hayes, the CEO and Managing Director of the Australian Arm.

And our purpose.is a really simple one and it's to make everyday easier so Australians can live a good life.

But it seems that doesn't extend to its franchisees who claim head office has left them with nothing.

I don't think they're interested in a franchise system.They probably believe in a franchise.system where they run, operate, own every store.

Desperate franchisees are now taking desperate measures.One store in Sydney's Sutherland erected this sign over the weekend to warn customers.Only for 7 -Eleven head office employees to come and take it.

They removed my sign, but they don't know I've got two more.

The franchisee bought in for $1 million.Tomorrow, he'll be kicked out with zero compensation.

After 10 years, 24 -7, we are going to be out of the business.And this is the only asset we have left.

I'm really sorry.I'm sorry for everything.You guys work so hard every day, 24 -7.It's not okay.

Franchisees are sold a dream, whether it was a long time ago or more recently, they're told that the business is something that you can build a life out of, that you can have an amazing future.But once they sign the contract, they realise that dream very quickly turns into a nightmare.

Michael Fraser's a consumer advocate who blew the whistle on 7 -Eleven more than a decade ago after discovering workers at his local store were being underpaid.

Started travelling Australia, and I ended up visiting 60 stores and found that, well actually I couldn't find anyone that was being paid the legal wage.

It caused massive fallout.Millions of dollars in back pay for staff and a lawsuit from franchisees alleging the franchise model was unprofitable.7 -Eleven settled for $98 million with no admission of fault.Michael says it appears the business is still treating its franchisees poorly.

Franchisees are made to feel like they're the only person that this has ever happened to so they feel alone but when they're notspeaking to other franchisees, they realize that this is systematic.This is happening to lots of people.

Over the past few weeks, we've been contacted by countless current and former franchisees who have either already lost their store or fear they're about to, along with their livelihoods.Many believe their stores will become corporate run, which means a massive windfall in profits for head office.

The time we put in the 7 -11, it was too much.It was our life, our health.

Georgia, who is too ashamed to show her face, owned a 7 -Eleven in Melbourne for nearly two decades.In the end, it counted for nothing.

Zero money.We got the business making zero.We've been working for this 18 years as slaves.

The bottom line is that franchisees need to be able to make back their investment during the term of their agreement.

Peter Sanfilippo is the franchise lawyer.He says it's unlikely illegal what 7 -Eleven is doing, but ethically, it's another question.

Maybe you would say that it's unethical for the franchisor not to buy them back.

What would you say to anyone wanting to buy a 7 -Eleven franchise now?

If they want to ruin their life.As simple as that.Even if they make money, their life will not be the same.

have our way of life.

How is that for using, abusing people, then tossing them aside?7 -Eleven told us it handles its franchisees in a fair and considered way.Well, that is straight out BS.It is the very definition of corporate greed.It is an absolute rip -off.They let these families work like dogs 24 -7, then they swoop in and steal their livelihoods.

We are staying on this, so please let us know if you've been affected, because in our eyes, it is theft.It is so wrong.