7-Eleven Franchisee Announcement: Franchise Financial Solutions Center
As we continue to face unprecedented challenges from the COVID-19 pandemic, we thank you for all that you and your teams are doing to support the communities in which you live and operate. In addition to the more than $80 million of Franchisee support that 7-Eleven has announced to date, today we are pleased to announce temporary Store Franchise Agreement policy changes, effective with March accounting.
Temporary Net Worth Requirement Policy Change
For franchise stores that had a net worth above zero on their February financials, Franchisees with a net worth balance of up to negative $10,000 will not be required to take any immediate action or pay in capital, and the normal SEI breach process is temporarily suspended.
These temporary policies will remain in place until at least June 30, 2020. SEI will continue to evaluate the changing situation and will communicate any additional policy changes as necessary.
What Happens Next
SEI has created a Franchise Financial Solutions Center (FFSC) to further support Franchisees during this turbulent time. The purpose of the FFSC is to help 7-Eleven Franchisees through the financial challenges caused by the COVID crisis. The FFSC will serve as a resource to interact with SEI regarding certain financial matters such as the impact of the COVID-19 crisis on sales, income and equity positions, as well as third-party programs that may be available to support Franchisees.
Franchisees with net worth deficits greater than $10,000 (as of March accounting):
Scheduled conversations - Next week, FFSC Team members will reach out to schedule phone conversations with Franchisees who have a deficit equity balance greater than $10,000 as of March 31, 2020. These calls are expected to begin on April 9. The primary focus of these calls will be to work with Franchisees to establish a plan to restore equity balances back to contractually required levels. Please note that the FFSC is not authorized to issue or negotiate additional operations credits.
All other Franchisees:
Beginning April 13, the FFSC will be ready to accept inquiries from Franchisees. Examples of questions that the FFSC can help with are:
Look for more details about how to reach out to the FFSC in the coming days.
There is also an informational video posted on the 7-Eleven Stores App. You will receive an email shortly with a direct link.