Public outrage has erupted in Australia after Seven-Eleven took over a Sydney store run by Jotika and Sunny Sharma and locked them out. The couple said they lost everything when the chain assumed control of the outlet without paying them for the equipment and infrastructure they had built into the business.
The Sharmas operated the franchise for 10 years, invested more than A$1 million, worked the store every day of the week, and built a loyal customer base. After their contract expired, they tried to renew it, but said the company found a legal loophole to remove them from a successful business they had spent years developing.
Australian media reports, including the investigative program "A Current Affair" and ABC, showed images of stunned franchisees watching company representatives change the locks. Legal experts described Seven-Eleven’s franchise agreement as “draconian and one-sided.” Under the contract, the company can simply choose not to renew after 10 years, without giving a reason, and can also block a franchisee from selling the store to another buyer.
In this case, experts said the chain used that power to stop the Sharmas from recovering even their investment in stock, fittings and fixtures. Once the company delayed matters and prevented any sale until the end of the 10-year term, the franchise expired and the store’s goodwill, equipment and contents became, legally, the corporation’s property. The backlash on social media was intense, with Seven-Eleven accused of bullying and “legalized exploitation” of working families. Professor Jenny Baek, a leading Australian franchise law expert, said current laws leave franchisees completely vulnerable, and the case has revived calls for government intervention and major legal reform.
