Disucss about the Case Study of Australian company 7-Eleven.
This is notable that the Australian company 7-Eleven was being alleged for several times for violating the basic human rights. It is peculiar to find the leading convenience-store franchisor of the entire world is experiencing a huge Gulp-sized litigation from inside the company. This can be stated that a collective of 7-Eleven franchised dealers in Australia lodged a case in central court on July, 2014 appealing the enterprise dishonored their moralities both as franchisees and individual entities controlled by central and state-owned commandments (Fonjong and Fokum 2015). They may claim that company named 7-Eleven places discriminations in contradiction of South Asian colonist franchised dealers and unfairly enforced a significant sum of previous shop proprietors to dismiss their authorization settlements as significant portion of a turnover strategy.
It is to be mentioned that the accusers have claimed this incident as the significantly tragic incident in the contemporary years. They clearly stated in their complaints that they felt pathetic to find a leading global company can be permitted to convert the good days into bad days for the end number of families and individuals of America. This is evident that a Japan based organization named Seven & I Holdings have owned the 7-Eleven company along with its head-quarter in Dallas in the year 2005 (Handtke and Wangmo 2014).
The accusers add the name of Franchise Owner's Association of Greater Los Angeles (FOAGLA) which is an organization comprised of 1,200 significant workers. They also include the names of five individual franchised dealers associated with 7-Eleven in California. This needs to be mentioned that this particular company is still looking for the profit. However, the court has declared that 7-Eleven has dishonored the laws set by the state and federation in association to its conduct of franchised dealers. However, the 7-Eleven has clearly dismissed the significant complains and allegations and continuously is trying to manipulate the data.
This is important to know that the researchers have placed an essential argument in the complaint is if 7-Eleven has been involved in significant churning. It can be stated that the churning is a trick that allow the franchised dealers to dismiss the significant franchise commitments to sell the sites and again and earn a renewed inflow in permit payments. The complainants also think that South Asian franchised dealers can be up for the churning goals over and done with annoyance, fabricated charges and marginalization.
According to Raymond Areaux, a franchise advocate, churning has become a common allegation in contemporary context. He stated that the rising number of churning allegations can be initiated from the former franchisees' sentences that franchised dealers are trying to earn benefit without apprehension for the significant franchisees. It can be said that another side of this crisis denote the significant representation of franchisors. This is notable that they are worried regarding their specific company name. Therefore, they always try to maintain their reputation of their company by doing significant actions and activities. However, it is to be remembered that Areaux does not belong to the specific parties associated in the scamp of 7-Eleven.
This is notable that the churning allegation comes from a family of ex-7-Eleven franchised dealer. As per the number of newspaper reports, Dilip and Saroj Patel were forced to surrender their shops to 7-Eleven subsequent an allegation by the organization that they disowned their franchise commitment in the December, 2013 (Johnson 2016). It can be mentioned that the Patels placed an argument that they were unethically forced to sign ended their store along with violent examination techniques and intimidations of claim.
This is evident that disastrous circumstance is basically a number franchisees have been jailed for dishonoring the legislature or to break the franchise commitment. According to a spokesperson of 7-Eleven, this particular company is dedicated in protecting the invitees, workers and the significant partners by concluding the relation with the significant fraud companies who have violated law and break the commitment when required. It can easily be assumed that the data has been collected from the spokesperson of this particular company can be biased and manipulated to the significant extent.
This is to be noted that particularly for FOAGLA and the significant franchisees' charge of churning to carry out in court, the bench may not only intervene that the Patels were incorrectly DE franchised. However, they and the number of other franchisees have found to be battered by 7-Eleven as a broader churning initiative. It can be stated that Louis Tambaro, the lawyer stood for the accusers correctly mentioned that the essential feature of the statement is that in current periods, in contemporary years, 7-Eleven has developed as a controversial company in terms of pointing, evading and later dismissing franchisees who have been observed as impious strategies or dealings of 7-Eleven, or impious labor laws. There are counter arguments by significant researchers stated 7-Eleven has, in contemporary times, ramped up their hard work, which people may think excessively steering franchisees of a assured racial pedigree
This can be said that these are common issues for Tambaro; his firm, Marks & Klein, has put up same complaints on behalf of franchisees from 7-Eleven, Edible Arrangements and Pizza Hut. It is evident that particularly in this 7-Eleven case argues the complainants will unable to discover proof of several methodical transfer to power franchisees to sign over their trade. This can be said that the organization may have an extraordinary retaining degree for franchisees as per the spokesperson of 7-Eleven. It is evident that 7-Eleven has 53,500 significant global shops. There 7,800 stores functioning in the U.S., about 6,200 are franchised among them.
This is to be stated that 7-Eleven was apparently showcased their pride for its multidisciplinary activities and autonomous authority. According to a spokesperson of this company USA have announced 7-Eleven’s name as one of the leading 50 Franchises for Minority groups in 2013. This company has earned a reputation as one of the top franchisee occasions by Professional Woman’s Magazine, Hispanic Network Magazine and BLACK EOE Journal (Greaves 2016). However, it has recently been proved that this data was completely manipulative. This company is actually having a number of racist strategies in order to earn profit. This particular company has significantly discriminated and dishonored the number of Black women because their race within the company. However, according to Tambaro this case will continue till one of the end of this significant case can provide sufficient data (Hall-Araujo 2016).
There can two significant recommendations to this particular company to earn back its early reputation. The significant system of the franchisee needs royalty payment on the basis of the significant percentage of sales. 7-Eleven can invest from $1 million to $2 million while forming a significant store into the site. It also needs to pay the significant building rent or real estate taxes.
This is to be mentioned that 7-Eleven was using their reputation as the leading company of Australia to violet the human rights principle and managing to maintain their status. It can be said that there are several information manipulated by the significant officials of this particular company. Therefore, this can be stated that there are significant contradictory views and data can be found while researching on this particular case. It is being evident that the company was violating the human rights principle by discriminating the employee as per their race and gender. According to Tambaro, the franchisors cannot be successful till the franchisees become successful as per the theory. However, in certain cases their interests may diametrically oppose each other.
Fonjong, L.N. and Fokum, V.Y., 2015. Rethinking the water dimension of large scale land acquisitions in sub-Saharan Africa. Journal of African Studies and Development, 7(4), p.112.
Greaves, G.A., 2016. Hidden Black and Brown Bridges: The Mutual Influences of Dr. Martin Luther King and Hispanic Theologian Dr. Justo González.
Hall-Araujo, L., 2016. Ambivalence and the ‘American Dream’on RuPaul’s Drag Race. Film, Fashion & Consumption, 5(2), pp.233-241.
Handtke, V. and Wangmo, T., 2014. Ageing prisoners’ views on death and dying: Contemplating end-of-life in prison. Journal of bioethical inquiry, 11(3), pp.373-386.
Johnson, V.S., 2016. When blackness stings: African and Afro-Caribbean immigrants, race, and racism in late twentieth-century America. Journal of American Ethnic History, 36(1), pp.31-62.