Couple loses $1 million investment in 7-Eleven franchise after lease denied

A couple who invested more than $1 million in a 7-Eleven franchise has been left with nothing after the convenience giant refused to renew their lease and blocked attempts to sell the business. The petrol and fast-food store in Kensington, Sydney, has now returned to 7-Eleven's head office.

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I asked them, how is it possible that I walk out of my investment? I took a hefty loan

Jotika and Sunny Sharma purchased the franchise in 2015, securing an ANZ loan exceeding $1 million for the initial goodwill and franchise fees. Despite building the business and customer base over a decade, they received no compensation upon handing over the keys last Wednesday. "I was devastated… I didn't know they were going to exploit me like this," Ms. Sharma said.

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I was devastated … I didn't know they were going to exploit me like this

The Sharmas had previously operated two other 7-Eleven franchises successfully over nearly two decades, selling them in 2013 and 2020. However, for their Kensington store, they were notified that the lease would not be renewed due to "the operational performance of the store." They were given two extensions to find a buyer, but their attempts to sell were reportedly denied by 7-Eleven without stated reasons.

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The problem is that terms come to an end, so the franchisor's really got the upper hand, because they have got the right to do what they've done, which is take the site back

UNSW emeritus professor Jenny Buchan, a specialist in franchise law, described the situation as unfair but legal. "The problem is that terms come to an end, so the franchisor's really got the upper hand, because they have got the right to do what they've done, which is take the site back," she explained. 7-Eleven Australia stated in response to a request for comment that it does not comment on individual franchise matters, adding that it works closely with its franchise network and approaches all franchisee matters fairly and considerately.

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We don't comment on individual franchise matters. 7-Eleven Australia works closely with its franchise network and takes its responsibilities seriously. We approach all franchisee matters in a fair and considered way