Legal and Legislative Articles

Lawsuit concerning 7-Eleven’s 2004 Franchise Agreements

A group of six franchisees affiliated with UFOLI have retained Einbinder Dunn & Goniea LLP (“EDG”) and filed a lawsuit concerning 7-Eleven’s interpretation of its 2004 Franchise Agreements (which many of you entered into).  Specifically, although these 2004 Franchise Agreements have a 15 year term,  7-Eleven is now taking the position that, based on certain language in the contracts, it can terminate earlier if the master lease for the store expires before the end of the term.  The proposed new Franchise Agreement will substantially increase costs by entitling 7-Eleven to a greater percentage of gross profits than it is entitled to receive under the 2004 version.  EDG’s lawsuit seeks a declaration that the 2004 Franchise Agreements have not yet expired under their terms (and thus that these franchisees do not have to sign new, and unfavorable, Franchise Agreements in order to keep operating their stores during their initial 15 year term).

This is a system-wide issue which many of you may be facing (either now or in the near future) – where you will be asked to sign a new Franchise Agreement upon the expiration of your master leases (notwithstanding that 7-Eleven is signing new leases for the same locations).  If you have not signed a new Franchise Agreement yet and are interested in pursuing similar claims to establish your rights under your 2004 Franchise Agreement, you may contact EDG as soon as possible to join the current lawsuit.  (EDG will shortly be filing legal papers to add at least one additional franchisee to this group, and others could be added as well at this juncture.)    

EDG has a nationwide practice providing legal representation to franchisees.  You can contact EDG Partner Michael Einbinder by e-mail atme@edglawfirm.com and Associate Stephanie Blumstein at sb@edglawfirm.com.  They may also be reached by phone at (212) 391-9500.


PLEASE NOTE NEW FIRM NAME AND ADDRESS

Stephanie J. Blumstein, Esq.
Einbinder Dunn & Goniea LLP
112 Madison Avenue, 8th Floor
New York, New York 10016
tel:  (212) 391-9500
fax: (212) 391-9025
sb@edglawfirm.com
www.edglawfirm.com

 

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