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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:

  • I see that SEI is providing support to Franchisees in several different ways.  Can you help me understand the impact of these items to my financial statements?
  • My store has been particularly hard hit by the COVID-19 crisis and my equity balance has dropped below minimum requirements.  What will happen next?  What options are available to me?
  • What government assistance programs may be available to me?  Where can I find more information?

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.

We have been working tirelessly to put together a structure for our newly elected board the last two months.  We have also been working on the application to gain the formal recognition from the NCASEF before October's national meeting. We are very optimistic, as the majority of the national board has given their verbal approval! 
We have reached out to SEI and asked them to keep our board in the loop with any communications regarding important meetings, emails, and discussions, on any and all upcoming important issues related to Franchisees.  Our zone leader and both market managers have welcomed our association and they assured us that our organization will be a big part of all future communications.  
 
On August 18th, we were invited to attend the ZLC (Zone Leadership Counsel) meeting in California.  Our board members Bill Huffman, Rehan Ashraf, Tim Jewsbury and Mohan Grewal attended the meeting.  I am attaching the presentation from the meeting for you to see, please open and read the presentation attachments.
 
Our board is working on a Holiday Party and General Town Hall meeting with our members where we would like to hear your suggestions, concerns and ideas on how to get our businesses better and more prosperous in the coming years. We are hoping to have our first General Town Hall meeting in November, and we will keep you posted on the Holiday Party date.  In the meantime, please email us topics and ideas for open discussion for the meeting.
 
We appreciate your support and look forward to your partnership in building a better, more transparent, more profitable, more business minded, franchise owners association. We are committed to building this FOA with each and every member's interest in our heart and in our mind.

Sincerely, 
Naeem Khan

Contact Us Today!

GreaterOregonFOA

@gmail.com

 

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