The franchise industry is abuzz with the allegations made about the world’s largest convenience store chain, 7-Eleven by a former employee.
Read what loss prevention pro Kurt McCord had to say about his 7-month stint at 7-Eleven Asset Protection:
In his certification, McCord claims that 7-Eleven engages in franchise “churning” (acquiring franchisee stores and reselling at a profit) and uses its asset protection department as a cover.
Here’s an exceprt from McCord’s statement:
[The] relentless quest for higher profitability and greater control led 7-Eleven, Inc. to adopt a strategy of “churning” franchise locations. This acted as a way to generate
tens of millions of dollars in additional profits, and as also became an effective way to rid the system of “pain in their ass” franchisees who dared question 7-Eleven’s predatory practices.
In order to deploy an aggressive churning initiative, 7-Eleven, Inc. needed to disguise it as something more professional and benign.
7-Eleven decided to conduct their churning initiative under the guise of an Asset Protection (Loss Prevention) department. They named the two teams that acted as the warhead of the scheme the “Centralized Investigations Team” (CIT), and a covert mobile surveillance team that they dubbed the “Profit Assurance Team” (PAT Team)…
…Their goal was not to prevent retail theft, but to create a new profit center to acquire franchisee stores at no cost through tactics that sometimes consisted of false charges of franchisee wrongdoing and intimidation of franchisees.
For more information, check out the story on UnhappyFranchisee.Com.
They broke the story here: 7-ELEVEN Bombshell: Insider Accuses 7-11 of Predatory Franchise Practices