Judge Throws Out 7-Eleven Franchisee Suit Over Management Control

LOS ANGELES — A judge in California has ordered 7-Eleven franchisees and 7-Eleven Inc. to sit down and iron out their differences.

In a ruling on March 14, the judge in U.S. District Court for Central California "dismissed with prejudice" a lawsuit brought by the National Coalition of Associations of 7-Eleven Franchisees (NCASEF) against its parent company claiming 7-Eleven has not fulfilled its promise of treating the franchises as independent contractors and business owners, Dallas News reported.

NCASEF, which represents the owners of nearly 7,000 franchised locations in the United States, filed the legal challenge in October, as CSNews Online previously reported.

The suit, filed in U.S. District Court for the Central District of California, challenged certain provisions of the 7-Eleven Franchise Agreement, and sought monetary damages, attorney's fees and costs and other relief for claims relating to unpaid overtime wages and unreimbursed expenses.

One month after filing the lawsuit, the presidents of all Franchise Owners Associations (FOAs) voted unanimously to not attend the 7-Eleven Experience. The retailer's convention and trade show was held in Las Vegas in February.

The parent company subsequently filed a countersuit the day the convention ended.

The two sides are not required by the court to reach an agreement on the claims and counterclaims in the lawsuit.

Irving, Texas-based 7-Eleven Inc. operates, franchises and/or licenses more than 60,000 stores in 17 countries, including 10,700 in North America.