News and information outside the United States

Franchisee Persuades Japan's Seven-Eleven to Adjust 24/7 Hours

What with Japan’s labor crunch, Seven-Eleven (7-Eleven is spelled out by the company in Japan) franchisee Mitoshi Matsumoto, 57, found himself working longer and longer hours. Something had to give. He asked his franchisor to allow him to close his 24/7 store for five hours daily, but corporate refused. He closed anyway.

Seven-Eleven warned he would be violating his contract and could not only lose his license, but also be slapped with a $150,000 fine. That's when Matsumoto took his case to the media.

Japan Labor Shortage Leads to Seven-Eleven President Ouster

Seven-Eleven (7-Eleven is spelled out by the company in Japan) franchisees in Japan have been facing labor shortages and higher wages. That makes their franchisor’s mandate of staying open 24 hours, seven days a week, a major problem. Franchisees have been pressing for a change to the always-open policy, leading Kazuki Furuya to step aside as Seven-Eleven Japan president.

Early this month Takuya Imai of the Nikkei Asian Review wrote:

UAE Restaurant Franchise Owner Sours on Global Brands

Dubai, UAE-based Mansour Bin Jabr says, after establishing a franchise relationship with two international F&B (food and beverage) brands, he will never again invest in a non-UAE-based global franchise. 

Mansour Bin Jabr, founder of Mr Miyagi's, warned against 'ridiculous' franchise fees and mistakes made by international brands who are unfamiliar with the market

S Korean Franchises Shutter in 52 Months vs 89 Months for Non-franchises

South Korea reported on Monday that franchises in the country on average have a significantly shorter life than non-franchises.

Franchisees on average shuttered their businesses in just over four years, government data showed Monday, in the latest sign of troubles facing small entrepreneurs. The 2015 data compiled by Statistics Korea showed that franchisees ran their stores for 52 months before closing them…The data revealed that non-franchisees ran their businesses 88.9 months on average before closing their operations.

7-Eleven Insists Owner Keep Store Open, despite Danger

A 7-Eleven in Sydney, Australia, has been robbed twice this year by armed men in the very early hours of the morning, while it’s still dark. All other stores in the area are closed at that time, leaving the convenience store the lone lit-up target. Paresh Davaria, the franchise owner, wants to close his location too.

Police recommended the closure of the store between 11pm and 4am, however 7-Eleven has refused Mr Davaria's request.

Australia's Royal Commission Hits Banks and Franchisors

Australia is in the midst of a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. While the government rejected the need for the Royal Commission it became evident it would pay dearly in the upcoming election if one did not go ahead.