Friday, November 9, 2018

7-Eleven "has been battling its store owners for years. It seems to have found a new tool: U.S. immigration authorities"

Bloomberg:

The day he was raided, immigration officers fanned out across America, serving inspection notices and arresting suspected undocumented workers at 98 7-Eleven stores in 17 states

...

It’s a huge headache and a public-relations nightmare for the company and its chief executive officer, Joe DePinto. But the immigration crackdown has also given 7-Eleven something potentially useful: the names of franchisees who might be in legal jeopardy. Store owners found in violation of immigration law could be in breach of their franchise agreements. And as they well know, 7-Eleven has the contractual right to take back a store from someone who’s violated his or her agreement.

...

All’s fair in the bitter, protracted war between 7-Eleven and its franchisees. The tensions have built steadily in the years since DePinto, a West Point-educated veteran, took charge and began demanding more of franchisees—more inventory, more money, more adherence in matters large and small. Some franchisees have responded by organizing and complaining and sometimes suing.

As detailed in a series of lawsuits and court cases, the company has plotted for much of DePinto’s tenure to purge certain underperformers and troublemakers. It’s targeted store owners and spent millions on an investigative force to go after them. The corporate investigators have used tactics including tailing franchisees in unmarked vehicles, planting hidden cameras and listening devices, and deploying a surveillance van disguised as a plumber’s truck. The company has also given the names of franchisees to the government, which in some cases has led immigration authorities to inspect their stores, according to three officials with Homeland Security Investigations, which like ICE is under the jurisdiction of the Department of Homeland Security.