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7-Eleven Whistleblower Alleges Predatory Practices

May 9, 2014 By admin

Sean Kelly at BlueMauMau reports that former 7-Eleven Corporate Investigations Supervisor Kurt McCord has dropped a bombshell in the lawsuit of 7-Eleven, Inc. v. Karamjeet Sodhi, et. al.

McCord, an experienced loss prevention specialist who worked for 7-Eleven, Inc. for 7 months in 2013, has stated that he resigned because of “unethical and even unlawful missions” being carried out by SEI against its franchisees.

He claims that 7-Eleven’s asset protection department is a “predatory program [designed] to increase corporate profits by unethically stealing the equity and goodwill of its franchisees.”

He claims it’s a “weapon of vengeance” wielded by 7-Eleven executives for personal vendettas and to terminate franchisee leaders they deem “pains in the asses.”

And he claims that the massive build-up of the 7-Eleven asset protection program in 2013 and the extreme pressure for it to meet profit goals has resulted in unfair seizures of stores from franchisees who have done nothing wrong.

I feel that it is my duty to expose the injustices I witnessed.  – Kurt McCord

Kurt McCord’s damning allegations regarding 7-Eleven are contained in a 25-page certified statement (Certification of Kurt McCord) filed by attorney Jerry Marks of the law firm Marks & Klein on behalf of his client, 7-Eleven franchisee Karamjeet Sodhi.

Kurt McCordIn June, 2013 7-Eleven, Inc. attempted to terminate Karamjeet Sodhi’s franchise agreements and seize control of his 6 profitable 7-Eleven convenience stores with no prior warning or opportunity to “cure” the alleged defaults.  7-Eleven, Inc. sued the 26-year franchisee (See 7-ELEVEN Sodhi Lawsuit to Proceed to Trial), alleging that Sodhi had fraudulently failed to report hundreds of thousands of dollars in merchandise sales, thereby cheating the corporation of its share of the stores’ revenue.

However, Kurt McCord alleges that Sodhi was the victim of an internal 7-Eleven hit squad (my words) that maliciously targets the profitable stores of respected franchisee leaders, and seizes them for later resale.

The 7-Eleven asset protection team allegedly kills two birds with one stone:  generating tens of millions of dollars through the resale of seized stores from uncompensated owners, and eliminating long-term franchisee leaders (like Sodhi) who don’t toe the company line.

Read More at: BlueMauMau

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