OTHER NEWS - Aug. 30, 1993
From Times Staff and Wire Reports
7-Eleven Owners Sue Parent: The group of franchise owners, frustrated by late-night robberies, has filed a $100-million lawsuit over a policy that penalizes them for closing at night. The 5,900-store chain is owned by Southland Corp. of Dallas. The only way a franchise can avoid the 24-hour schedule mandated by Southland is to pay a penalty representing 6% of the store’s gross profit, said John Wells, the attorney representing more than 100 owners. The suit alleges that Southland also fixes prices, absorbs supplier discounts, violates antitrust rules and diverts advertising funds from the stores to headquarters.
