Seven-Eleven to end contract with franchisee who cut opening hours

7-11 in America is now owned by 7-11 Japan, I think. Do they operate the shops 24 hours a day?

@vanityofvanities

Do they operate the shops 24 hours a day?

Yes

The man broke his franchise contract and then wants to find ''common ground''. What? Common ground was established in the contract he signed and violated. Some people...

@JustMyThoughts: He couldn't find staff, how was he suppose to keep the store open? Break the law by forcing staff to work overtime? Himself do it? The guy NEVER got a day off, NEVER, he asked for 1 day off!

More evidence of institutionalized bullying in Japan. It does not need to be like this. I feel for the franchise owner.

There must have been conditions for a breach of contract rather than just termination of contract. Perhaps the owner was hell-bent on moving away from 24-7.

JustMyThoughts; The man broke his franchise contract and then wants to find ''common ground''. What? Common ground was established in the contract he signed and violated. Some people...

I see you point but times change. We see that it is getting more and more difficult to find part time staff. I am sure this was not the case when he signed the contract. I know first hand what it takes to run one as I have a friend who runs a 7-11. Recently, he works day and night and recently, cannot keep staff/find staff to operate after midnight, hasn't had a vacation since he opened it and is missing watching his kids grow up. Times change! Not every 7-11 needs to operate after midnight. The one that my friend operates has less than 10 customers from 12 to 2 and about 2 from 2 to 4 am. People just need to make a minor adjustment to their life and stop thinking they are the god o mighty customer. Shop before midnight! I'm sure the execs of 7 & i holds are enjoying their life and the expense of their slave labor policies.

As for USA: Some are 24/7 and some aren't.

With so many other options out there, I will give my business to stores other than 7-Eleven.

This is bullying, pure and simple!!

Yes, there is a contract. But it is clear that 7-11, as a powerful company, has decided to use its power to abuse this individual store owner!

And depriving him of his livelihood!!

They don't care about him. This is meant to be a warning to all other franchise owners not to fight 7-11!

Despicable, detestable behavior!!

I see you point but times change. We see that it is getting more and more difficult to find part time staff. I am sure this was not the case when he signed the contract. I know first hand what it takes to run one as I have a friend who runs a 7-11. Recently, he works day and night and recently, cannot keep staff/find staff to operate after midnight, hasn't had a vacation since he opened it and is missing watching his kids grow up. Times change! Not every 7-11 needs to operate after midnight. The one that my friend operates has less than 10 customers from 12 to 2 and about 2 from 2 to 4 am. People just need to make a minor adjustment to their life and stop thinking they are the god o mighty customer. Shop before midnight! I'm sure the execs of 7 & i holds are enjoying their life and the expense of their slave labor policies.

As for USA: Some are 24/7 and some aren't.

I agree that people deserves rest and I also think that half of the konbini stores are unnecesary, but he got involved with a company that sells that 24/7 service.

I'm pretty sure the margins are quite tight for store owners, and they cannot afford to pay extra for night time shifts. But would you work all night for 1000 yen an hour when there are plenty of jobs everywhere?

Finally, I do not like the attitude and business model of these big companies, they do force people to accept unfair contractual conditions. If only the government was there to rule these.. (I know, I know).

Seven-Eleven USA was acquired by sevenandI holdings back in the 1990's. Seven-Eleven USA was near bankruptcy and was acquired then.

Perhaps he’ll be able to start a FamilyMart franchise that will allow him to operate on a reduced schedule.

This does illustrate the perils os anyone ever becoming a franchisee though. Once you sign that contract the company has enormous leverage over you since they can basically shut down your business, no matter how many years of your life you have devoted to building it up, the second you don’t do exactly what they tell you to.

The franchise contract for 7-11 is actually 24-7-365 Open all day - everyday.

He signed up to this and now wants to change. 7-11 want to keep the original contract.

Simple solution....Change to a Lawson!

The father of a friend ran a shop through a second-tier conbini company out in the countryside where two thoroughfares intersected. Disillusioned, he cancelled his contract, but the company would not pay to remove the sign, so he left it up and my friend took it over, selling local merchandise and stuff she sourced from trips to Costco, all under the banner of that conbini company. It is very popular.

Always found the name a little ironic.

7-11 how about 24/7?

@since1981

As for USA: Some are 24/7 and some aren't.

https://franchise.7-eleven.com/franchise/faq

Do all 7‑Eleven stores need to be open 24 hours a day?

Because our customers have come to rely on our stores to meet their needs and their schedules, all 7‑Eleven stores operate 24 hours a day, 7 days a week, where allowed by law.

Keep the 24/7, tradition must count for something.

Keep the 24/7, tradition must count for something.

It's not a tradition, it's a business model.

Samit Basu; https://franchise.7-eleven.com/franchise/faq Take note of the last four words.

Because our customers have come to rely on our stores to meet their needs and their schedules, all 7‑Eleven stores operate 24 hours a day, 7 days a week, where allowed by law.

one does not simply own a franchise and not following rules.

As tough as it may be for the franchise owner, he is the one responsible for staffing his store. If that turns out to be impossible because it means he'd have to work 24/7 himself without days off then, yes, he'd probably have to close the store (just like any other business that can't find enough staff).

7-11 stores are useful for truck drivers who are driving day and night. They can take a break and can use a toilet. However, the business model is a kind of a scheme. It is made the parent company never lose money. For example, konbiki bento that they could not sell within the day must be paid by the store owners.

Perhaps he’ll be able to start a FamilyMart franchise that will allow him to operate on a reduced schedule.

That was my first thought. I've read that Famima and Lawson are much more flexible in regard to opening hours than 7-11.

Daily Yamazaki might allow it, as well. I'd like to see more Daily Yamazaki shops to bolster competition, especially since Famima acquired Circle K and Sunkus.

garypenToday 10:29 am JST

Flexible or not, that may be where 7-Eleven has its edge, its brand reputation, its identity. I can really understand why they don't want to lose it.

I'm on the Franchisee can't meet the contract conditions, it's OK to discontinue with him school.

but he got involved with a company that sells that 24/7 service.

Is that the case ? The 24/7 opening is not so old in Osaka shitamachis. Maybe that was allowed from the late 90's. Before that, only shops near big stations were 24/24. Selling booze was more restricted too, they couldn't do it except if they had a double shop with side as sakaya that closed earlier. Since then, residents have done petitions to reduce hours in residential areas because of the noise caused by customers drinking in front of the shops in the middle of the night.

And even if franchisees agreed, that was other times, when that made sense. 7-11 should update their conditions. Particularly they brag that they adapt to customers needs by changing the products in each shop at each delivery. Similarly, they have to see how the shop owner's needs and possibilities fluctuate. In some places, with lots of traffic and night-life, a large 24/365 can thrive, night shift staff can be found by paying higher wages. In some touristic places, a smaller shop anf reducing to seasonal activity daytime only would be the only way to not be in the red.

Simple solution....Change to a Lawson!

If Lawson has not already a shop in his street.

contract is a contract, plain and simple.

dont want to be in the contract, stop the business relationships and quit doing 711, very simple .

he will lose the suit and will gain nothing because 711 will probably allow flexibility in future contracts.

Absolutely I can understand why they don't want to change.... but it does not mean that they should not. If I have an immediate option, I will now steer away from 7-11 stores and use others.

They don't care about him. This is meant to be a warning to all other franchise owners not to fight 7-11!

This is not actually the case. 7-11 is attempting to set itself apart from their competitors by staying open 24/7. It seems to me that this business model and the wages offered in the industry for employees makes the business unviable in his location. It’s a difficult business and he can no longer compete. It is his choice to continue to stick it out under his companies contract - that he agreed to - or he can fold up and quit the business. Better yet, quit 7-11 and open a Lawsons instead.

He'll probably make it a Lawson's if he wants to remain a part of a chain

I judge a combini by its chocolate chip cookies. 7-11 has the worst. ; p

Since I have personally known people that have died from overwork in Japan, I have to say that the owner should be allowed to take time off. Not only that but the contract should should be considered unfair and if the courts look at the current situation of employment in Japan regarding franchises then that would be a step forward for change based on reality

It is interesting to me how many commenters suggest that this franchise owner just needs to close up shop and maybe change to another convenience store chain.

Do people making these comments realize that he had to invest his capital / money to open the franchise? And that if he closes down and/or wants to change the store to another chain, he will lose that money AND have to spend more money to convert the store to that of another chain??

It's not like he is just a manger of the store and 7-11 put up all of the capital to setup the store.

The shop manager can take days off if he staffs the shop while he's away. He either can't find staff, or he can't afford to hire staff. Either way, that's not a good sign.

He has requested to reduce operating hours, presumably for the same reasons as above, but he is contractually obliged to stay open.

Unfortunately it sounds to me like this is a simple case of a failing business. Just buying a 7-11 franchise doesn't guarantee success.

Maybe his shop could be a success if it operated from 7am to 11pm, but it seems as a franchisee he can't do that. Hopefully taking his struggles public will make other people thinking of buying 7-11 franchises think twice before doing so.

I do not think other convenient chains will contract with him. They think he is a trouble maker and they fear he will move to set up unions.

In this topic, I could find out 4 issues.

We have to consider them separately. 

1st, whether franchisee owners must be completely compliant with headquarters for continuing their contract, or not.

I think it is "Yes".

Because for keeping brand value, all franchisee should obey the strategy which is established by headquater.

2nd, wheter it is necessary to open conveneance store continuous 24-hours operation, or not.

I think it is "Yes".

Because their 24 hours operations give us valuable services and

there are opened these stores despite midnight, most people must have experienced conveniece.

3rd, it is necessary to open 24-hours throught all stores, or not.

I think it is "No".

In fact, many stores are helpful for us by opening in midnight.

But some of them, especially in country side, maybe it is not necessary, because there are few customers for visiting.

So, I think if they don't want to operate 24-hours, they should belong such a brand which allow not 24 operation.

Finally, the owner has other problems for continuing contract, or not.

The answer is following.

https://bit.ly/2QItxyP

They need to get better hour here in in the , worked there got robbed as I was working only two of us on duty ,not one manager call to check on us ..a really bad company to work for..

Back to 'mom and pop' stores!

Those little family run, independent shops that were open for extended hours, and sold a few of everything.

Did 7-11 borrow from their business model and just re-brand it?!

Doug, they do, they have help staffing system in place already

zones2surf, yea private business is a risky business and some do not succeed, the head office of a franchise is under no obligation to help failing business owner afloat at their brand damage and expense.

If I were a 7-11 franchise owner, I would sell my franchise and have him work with me on a non 7-11 owner. I'm sure there are other convenience store companies that are willing to work with him while thinking about people above profit.

I need to start a franchise company. I make the name and charge people yearly fees, initial franchisee license, force to follow my rules, and buy from people I do deals with, in exchange for...being able to use my name. That's it. No help with money, salaries, etc.

Keep your sign up until THEY take it down.

In the US, 7-11 is open 24 hours.

The stores were called Tote ‘em until 1946 when it changed to 7-11 because that was the ‘new, extended’ hours of operation. However, since 1963, many if not most 7-11 stores have been 24 hours.

Japan bought 70% of 7-11 in 1999...

A contract is a contract.

He can switch to a Family Mart or Lawson franchise if he doesn't want to open 24/24.

Suing a big company is hopeless.

In the city people may be up all hours, but in the 'burbs or the countryside, it's very dark and noone is up at night time.

I saw a vox pop on tv about convenience store opening hours. Some people were sympathetic to store owners but others were not. One person claimed it would be a huge problem because "I don't keep food in the house". Way to go in a disaster-prone country, I thought. There you have it, some people can't even survive the convenience store being closed for six hours between midnight and six am.

In the city people may be up all hours, but in the 'burbs or the countryside, it's very dark and no one is up at night time.

Quite right. Other than on major roads, it is dead. It seems and absurd waste of money that all of these stores need to stay open.

Also, the prices you pay in the daytime subsides the loss making night-time shifts. Prices could fall if stores were allowed to close.

7-11 in America is now owned by 7-11 Japan, I think. Do they operate the shops 24 hours a day?

7-11 stores in Australia are open 24/7, 365 days a year. Australia however has no labor shortage and many stores have international students (primarily Chinese, Pakistani and Indian students) manning the stores during night shift hours.

I'm sorry but this is a business model and franchise contract that we are talking about. I, as a consumer expect 7/11 to be open 7 days a week, 24 hours a day until such a time that 7/11 reports otherwise. Much like at KFC- I expect chicken, Daiso- I expect cheap (100 yen) things, Doutor- (笑)、coffee. Anyway, these are businesses and the franchisee's personal life is none of mine. Sorry, but this crying that life is not fair is simply stating the obvious. It's not fair, life is hard and sometimes financially challenging.

zones2surfToday 12:19 pm JST

Do people making these comments realize that he had to invest his capital / money to open the franchise? And that if he closes down and/or wants to change the store to another chain, he will lose that money AND have to spend more money to convert the store to that of another chain??

Yes, but that's his buy-in. Otherwise, for that same money he would built a shop more or less as nice, but without the brand power to go with it. He thought it over and decided giving up some autonomy to join a franchise was the best of his options.

Contracts can include clauses that are not legally binding or are outright illegal according to labour laws, consumer protection laws, and other civil codes. The company won't necessarily win just because the franchisee has signed up for something.

@kohakuebisuToday 09:51 pm JST

Well, the franchisee isn't exactly an employee, consumers protection doesn't play a part since to the extent any consumers would be disadvantaged it would be with the hours getting cut and not vice versa and considering the international prevalence of 24-hour shops you can't say Public Policy. What basis the franchisee can use is very unclear to me.

Time to make these stores autonomous. Self-working store. Everything's kept behind lockers that unlock after you pay.

Or go with the honor system. Keep that register open and customers can grab and pay themselves.

The owner can take time off as much as he wants and just come in to stock up the shelves.

... It's a joke by the way.

In the U.S. 7-11 stores are 24hrs. If they just use multiple workers.

Most convenience stores are not known for paying workers a living wages.

The only time they close is for maintenance or remodelling.

90's 7-11 in the US was going bankrupt because of miss-management and their competitor Stop--N-Go was pretty much destroying them on service which is why they are insistent on the hours because that is what killed the brand before.

If he doesn't want to have the contract he should change the store to his own brand and work with his own vendors so that he can make his own hours. You literally learn that as you go through the franchise process.

If 7-11 has a system to provide workers that they can call to sub for the times he will be out then he should have done that.

Imagine if he had to compete with all of the stores that we have in the states. They are literally everywhere.

Circle-K, Timewise, Chevron, Big Chief, Little Chief, Stop-N-Go, Stripes, Shell, Texaco , 24/7 Store, Raceway

If he was closed people will go somewhere else. If he's the only shop around then he would be making a mistake. I would have been looking for some relatives to hold down the fort while I went on vacation.

If 7-11 is always open why do they have locks on the doors?

The original Seven-Elevens were open from 7 am to 11 pm. At the time, this schedule was scandalously long hours that were convenient for all people who worked and needed to get things at unusual hours - thus originated the term convenience store and later combini. 7/11 holdings has made a mockery of the combini idea through its mercantilistic attitudes. I will try to limit my use of 7/11 too and use the other combinis. 24/7 stores have never been convenient for store employees.

Time to make these stores autonomous. Self-working store. Everything's kept behind lockers that unlock after you pay.

... It's a joke by the way.

A joke where ? They already exist.

Time to let A.I take over. The humans don't wanna a job, but I need a Slurpee and Doritos at 3am. Mr 7 11 please bring the first fully automated A.I store to market.

"The humans don't wanna job, but I need a Slurpee..."

Mayson, are you willing to work all night for minimum wage? I thought not.

Imagine if he had to compete with all of the stores that we have in the states. They are literally everywhere.

Circle-K, Timewise, Chevron, Big Chief, Little Chief, Stop-N-Go, Stripes, Shell, Texaco , 24/7 Store, Raceway

Also Quick Trip, Phillips 66, In & Out, Break Time, Caseys, Kum & Go, Amoco, Fast Stop, Conoco, Gulf Express, etc.

Does anyone know what the Customer Complaints were ?