7-Eleven, Inc.: The Fine Line between Franchise Independence and Interdependence

Authors
Hunt, T., Lee, C., Pekoske, C., O’Rourke, J. S. (Editor)
Region
North America
Topic
Strategy & General Management
Length
9 pages
Keywords
immigration
franchise
human rights violation
tension
parent company
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

In 2013, Immigration and Customs Enforcement raided 14 7-Eleven stores that subjected about 50 undocumented immigrants to negligent human rights violations. In 2018, ICE conducted a raid of separately owned franchises that resulted in 21 additional arrests. The franchises were held liable. How can tension be resolved between franchises and the parent company?

Learning Outcomes
  1. To highlight the conflict that arises when a franchisor strives to maintain independence from its franchisees while providing a guiding framework for franchise management
  2. To explore the role of government involvement in business
  3. To encourage analysis of business strategy in handling internal and external communication
  4. To consider a company’s crisis management strategy in responding to a crisis
  5. To promote discussion surrounding the responsibility and role franchisors have to manage franchisees