7-Eleven to pay $98m after franchisees allege its model was 'a lemon'
based on wage theft
By business reporter Emilia Terzon
Posted Wed 6 Apr 2022 at 12:53pm , updated Wed 6 Apr 2022 at 3:56pm

The ABC first exposed widespread wage theft in 7-Eleven stores back in 2015, as part of a
Four Corners investigation. (Four Corners)

Convenience store giant 7-Eleven is set to pay out almost $100 million after being hit with class actions by
Australian franchisees who alleged the company's business model was "a lemon" that was built on wage
theft.
The Federal Court of Australia today approved the
payout of $98 million to hundreds of franchisees.
The convenience giant largely operates in Australia
through a franchise network model, where individual
operators buy the rights to operate stores under
its logo and guidelines.
The company's franchise network in Australia was first

Key points:
7-Eleven was being pursued by franchisees
as part of several class action proceedings
The action alleged 7-Eleven's business
model was unprofitable unless staff were
underpaid
7-Eleven has settled for $98m without

hit by wage theft allegations in 2015 after a joint ABC
admitting any wrongdoing
Four Corners and Fairfax investigation found store
staff – many of them migrants – were working twice as long for half the pay.
The investigation alleged that franchisees implemented this wage theft but also that the head company
was aware of it.

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