FRANCHISES (RETAIL TRADE) – AUSTRALIA

Termination changes for 7-Elevens worry franchisees

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 5 : 13-Oct-15

Australian Greens MP Adam Bandt wants an amendment to the Fair Work Act in the wake of the wage exploitation scandal at 7-Eleven. His private members’ bill would make a franchisor liable if a franchisee fails to pay staff the correct wages. Meanwhile, 7-Eleven franchisees in Melbourne are concerned that they will not gain much from a proposed change in the way profits are split with head office. They also fear that new termination clauses could be exploited by head office.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN GREENS

7-Eleven alters model but legal action possible

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Original article by Adele Ferguson, Sarah Danckert, Damien Murphy
The Australian Financial Review – Page: 8 : 9-Oct-15

At present 7-Eleven franchisees currently receive 43 per cent of their stores’ profits. However, the Australian convenience store chain has proposed a new business model with a sliding scale for the profit split, based on a franchisee’s earnings. Many franchisees who attended a meeting in Sydney on 8 October 2015 were not impressed with the new business model, which was developed in response to the wage exploitation scandal.

CORPORATES
7-ELEVEN STORES PTY LTD