7-ELEVEN Franchisee Tariq Khan:  Villain or Victim?  Are you familiar with long-time 7-Eleven franchise owner Tariq Khan?  Please share a comment or opinion below.

Prior to June 21, 2013, Tariq Kahn was a prominent franchise success story, a Pakistani immigrant who came to America with $300 and built a profitable empire of 7-Eleven convenience stores and other businesses in Long Island, NY.

Before June 21, Mr. Kahn was celebrated in the press for his outspoken advocacy for his fellow 7-Eleven franchise owners, for his charity fundraising and support of such causes as a Long Island food bank, muscular dystrophy, and independent living for the developmentally disabled.

Most recently, Tariq Khan was credited with leading the effort to save and restore a golf course ravaged by superstorm Sandy.

On June 21, without warning (according to Khan), 7-Eleven pronounced that Tariq Khan was a thief who had been cheating them for years.

According to a Tariq Khan Declaration, 7-Eleven stormtroopers (aka 7-Eleven’s “Asset Protection” team), without any notice, warning,  or discussion, turned Tariq Kahn’s life and his family’s life upside down.

They converged on Tariq Khan’s five 7-Eleven stores and “proceeded to remove, without any legal rights, all prepaid phone and gift cards, as well as the money order machines.  Within a few more hours… lottery machines were also removed… despite the fact that they do not belong to 7-Eleven.”

That same day, 7-Eleven sent Khan a “a Non-Curable Notice of Material Breach and Termination.”  Under this letter, 7-Eleven asserted that they had immediately terminated the franchise agreements for all of his stores…   without citing any provision in their franchise agreements allowing them to do so.

Despite Khan’s “long-standing productive and mutually beneficial relationship with the 7-Eleven franchise since 1988,” 7-Eleven stated it was terminating the franchise agreements for “alleged misconduct including skimming profits, under-reporting sales and labor violations.”

The media instantly began reporting 7-Eleven’s allegations, leading with headlines that both sullied Tariq Khan’s business reputation and unavoidably blended allegations against Khan with unrelated immigration cases involving 7-Eleven franchisees being reported on in the same region:

“7-Eleven sues NY store owner, says siphoned money”  Wall Street Journal

“7-Eleven Sues LI Store Owner For Siphoning Money”  The Epoch Times

“7-11 sues NY store owner, says siphoned money”  NewsWest9.com

“7-Eleven sues franchise owner of 5 NY stores, alleges siphoned money for years”  Daily Journal

“7-Eleven Sues Long Island Franchisee for Siphoning Money”  Convenience Store News

“7-Eleven Sued Franchisee, Says That He Hid ‘Hundreds Of Thousands Of Dollars’ Of Sales From The Chain” – FierceRetail

“Suit Claims Former 7-Eleven Franchisee Leader Khan Siphoned Off Funds”  Brooklyn Roundup

Tariq Khan Claims he’s Victim of a Vicious 7-Eleven Smear Campaign

Why would 7-Eleven take such drastic, irrevocable action against such a prominent, 25-year franchisee?

According to Khan’s declaration:

The underlying motivation for 7-Eleven to file this action clearly stems from my activity as a proponent of franchisees’ rights and my Pakistani descent.  These allegations against me and my family are again simply baseless and shocking and I categorically deny any such wrongdoing.  I am convinced that these allegations are being made in retaliation for my long time, active involvement in the various franchisees ‘ organizations, and my vocal criticism of various actions taken by 7-Eleven upper management to the detriment of 7-Eleven franchisee owners.

According to Khan, the personal attack on him is not an isolated incident, but rather part of a larger 7-Eleven campaign to oust outspoken franchisees.

He states:

This concept of vindictive and retaliatory conduct by 7-Eleven is supported further by their simultaneous suit against another vocal proponent of franchisee rights in New Jersey -making the instant suit far from unique. In an almost identical suit being prosecuted by Plaintiff in the District Court of New Jersey (filed only two weeks ago), 7-Eleven is trying to rid itself of another franchisee “troublemaker.” 7-Eleven, Inc. Karamjeet Sodhi, Docket No.: 3:13-cv- 03715…

In the above suit, Karamjeet Sodhi, the president of the Metro New Jersey Franchise Operators Association, an entity whose primary purpose is to advocate for 7-Eleven owners in their disputes with 7-Eleven corporate management, is being sued by 7-Eleven in their effort to take away his six 7- Eleven franchises that he has owned and operated for many years.

[Left, Tariq Khan’s picture from an IGHL Independent Group Home Living tribute brochure]

While some defendants in other recent 7-Eleven actions have been dismissed by our commenters as cheaters who deserved what they got (7-ELEVEN Franchise Lawsuit Against Franchisee Pursharth Kapoor), Tariq Khan is not so easily dismissed as a franchise cheater undeserving of prior notice or a chance to respond or cure, considering:

  • Tariq Khan has been a 7-Eleven franchisee for 25 years, since 1988.
  • Tariq Khan’s first store was previously managed by 7-Eleven corporate.  He increased profits 20%.
  • Tariq Khan and his wife currently operate five profitable and successful 7-Eleven franchises.
  • Tariq Khan was the longest running chairman of the National Coalition of 7-Eleven Franchisees, serving in that position from 1998 through 2007.
  • Tariq Khan also served as vice chairman of National Coalition of 7-Eleven Franchisees, and was regional chairman from 1992 through 1997.
  • Tariq Khan has been a member of the United Franchise Owners of Long Island & New York since 1989 and was President of the organization for 15 years from 1998 through 2012.  He served as a vice president of this organization before that time .
  • Tariq Khan served on the 7-Eleven National Advisory Council from approximately  1992 through 2004.
  • Tariq Khan’s stores employ approximately 25 full time and 5-6 part-time employees
  • In 2008, Mr. Khan was honored by the New York City Council as one of New York’s most prominent and influential Pakistani-American leaders.
  • Khan was honored by the Muscular Dystrophy Association of Long Island, for his fund-raising efforts with 7-Eleven franchisees and substantial contributions on “The Jerry Lewis MDA Telethon”.
  • In 1995, Mr. Khan was a New York State delegate to the White House Conference on Small Business.
  • In 2004, he was an official torchbearer for the Olympics (held that year in Greece).
  • In 2009, Mr. Khan was honored by the non-profit IGHL for his support of independent group living for the developmentally disabled.
  • Mr. Khan is on the board of directors for Island Harvest Food Bank.

Also read:

7-Eleven Franchise Complaints

7-ELEVEN: Is 7-Eleven a Good Franchise to Own?

7-ELEVEN Franchise Owners Complain, Allege Churning

7-ELEVEN Franchises Raided by DOJ, Homeland Security

7-ELEVEN Downplays Japanese Ownership

7-ELEVEN Franchise Lawsuits 2013

WHAT DO YOU THINK?  ARE YOU FAMILIAR WITH THE TARIQ KHAN AND THE 7-ELEVEN ASSET PROTECTION PROGRAM?  SHARE A COMMENT BELOW.

TAGS: 7-Eleven, 7-Eleven franchise, 7-Eleven lawsuit, 7-Eleven lawsuits, 7-11 franchise, 7-11 lawsuits, 7-11 complaints, Long Island 7-Elevens, Tariq Khan, Tarik Khan, Tariq Khan lawsuit, Tarik Khan lawsuit, convenience store franchise, 7-Eleven litigation, 7-eleven franchise complaints, Einbinder & Dunn, attorney Michael Einbinder, 7-Eleven Asset Protection

unhappyzee

View Comments

  • Hi everyone who is upset with SEI
    Instead of blaming each other and sharing personal issues I would strongly suggest unite first and challenge this company
    Be positive and support everyone

  • Some ex employees has many time mentioned that SEI knows franchisees are weak and only depends on one business so they can twist and threaten them any time
    They are also worried about their image too
    So be unite and fight as one group

  • I am franchisee. Tariq khan was chairman of national coalition of franchisee association and Sodhi is FOA president.
    It's not co-incident. SEI is after any one who is far franchisee spokesperson.
    Indian Pakistani franchisee are the people who don't stand up for there rights. All franchisee fear SEI will take their store back.
    Some FOA presidents are ass kisser. 7-11 choose National business council from franchisee community. All ass kisser get selected in that committee so no feed back is heard from franchisee.
    Any one will speak against 7-11 will lose the store.
    7-11 is having there trade show. They forced all franchisee to attend in Vegas. They collected millions of dollars from vendors. (any vendor who refused to attend the show, was threatened that they won't be approved vendor any more)
    Those million of dollars they collected,because of franchisee. That amount shouldn't be splitted with franchisee ?
    There are more than 2000 people ex franchisee filed bankruptcy due to 7-11.
    The truck driver who got free 7-11 from CEO said in his interview lately, he was better off driving truck. Now he makes less than he use to make and work 30 more hours in 7-11
    There is USA top ice creme company, who refused to deal with 7-11 because they refuse to give kick back to get approved vendor status.
    Most corrupt company-gangsters- company who bully their franchisee's. Almighty is watching. He will send an angel soon so we will get JUSTICE.

  • I have known Tariq Khan all my life, and he is the reason behind my success. He was inspired me to do great things, and has always given me great advice.

    I believe this is a political coup by a vicious corporation, which is ungrateful to the contributions he has made to franchise owners.

    I hope 7-11 is held accountable for their actions when this is all said and done.

  • Heard court ruled against Tariq's motion for restraining order prohibiting 7-11 from taking stores. He is out of the system WITHOUT his day in court.....if there was ever a reason for strong franchisee protection legislation this is it. I don't know if Mr. Khan is guilty, innocent or somewhere in between BUT to arbitrarily demand turning over his business' based on one sided "evidence" is a crime.

  • Actually, you're wrong, Sad day. Khan had his day in court. The undeniable proof of his unethical and illegal activities were so overwhelming that it was almost defenseless. He didn't have his day in court??? I hear he was on the stand for many hours. To use the word "crime" in your previous statement is almost comical, as if it had been a criminal trial instead of a civil issue, Mr. Khan would go to jail. As someone who runs their business in an ethical way, I find it insulting that you would defend such actions for which you do not know the details. Don't drink the tainted, kool-aid flavored Khan Slurpee, the side that won today was the side that deserved to win.

  • STGod, you are the biggest fool. Speak of what you know, NOT of what you do not! The "presentation" SEI made was so one sided and off base it was insulting. I can't believe any "ethical" judge would allow such "bullshit". It is also offensive to hear you pass judgement WITHOUT the facts, rather based on "hearsay". SEI has violated their own agreement with the ENTIRE Franchise community and people like you are "blinded" by what you want to believe and not what is real. You supporting ANYTHING SEI does TO another Franchisee is tantamount to you supporting that they do it to you. Are you really that naive??? SEI is one of the most manipulative, thieving band of liars and crooks and it starts right at the top with the West Point Grads. You say you are someone who "runs their business in an ethical way". Have you EVER had an inventory variation? Did SEI take monies from you for the variation? Shame on you for allowing that to happen. WE ran our stores in an "ethical way" also and we were issued LON's and Breaches for things "guaranteed and protected" within the Agreement. You need to re-visit what is really going on and how it is going to impact your ability to maintain profitability for the future, because SEI is intent on "stealing" as much as they can from you. One day you are going to turn around and SEI will be trying to "do you", and who do you think will be on your side then???

    Like they always said in the military, "you need to see the bigger picture" and quit thinking so small. SEI presented half-truths and magnificently distorted information to paint a picture to the judge, but a lie is still a lie.

  • I'm curious, STGod....why do you think that Mr. Khan should go to jail when he's involved in a civil trial and not a criminal trial? SEI obtained the video for one of his stores "under the guise of a Homeland Security investigation. What that means is that two agents from the Department of Homeland Security showed up at his store the week of the Baig scandal reaching the public and claimed that they needed to pull the video out for their investigation on all the stores being raided. Those two Homeland Security agents then turned around and gave the video to SEI.

    Let me repeat myself here for effect: SEI utilized two members of the Department of Homeland Security as private goons to seize store videos for their own private lawsuit. The reason why SEI did this is because they claimed in court that Tariq Khan, a 61 year old man, had physically threatened their employees if they ever came to remove video from the store and that said employees needed some sort of protection in order to do this.

    It is not the Department of Homeland Security's job to provide personal security for SEI. But somehow, they were either knowingly or unknowingly manipulated into doing so. I find this frightening, even more so since SEI's lawyers admitted in court that they utilized subterfuge and manipulation of a federal law enforcement agency to carry out a financial vendetta. Read the court transcripts and you'll see that it's true.

    In a criminal trial, such improperly obtained "evidence" would immediately be thrown out in court. But in a civil trial, the judge doesn't care about how the video was obtained. So, STGod, why exactly should Mr. Khan be sent to jail for something he didn't do? I'm guessing you're either an SEI stooge or one of their "useful idiot" franchisees they parade around in the media to dance for them when they're drumming up PR. Either way, the facts are beyond you.

    As for the verdict itself, keep in mind that if more than one employee is stealing from the franchisee, SEI can turn around and say that the franchisee is directing them to steal from SEI and place the entire blame for the theft on the franchisee. That's what the crux of what the Khan case is about. The real reason behind this lawsuit is because for SEI, it's personal. Ever since Tariq Khan tried to sue the company 10 years ago to challenge the 85% rule & the splitting of advertising costs, SEI has had it in for him, as well as any other outspoken franchisee.

Recent Posts

Building Kids Worldwide Franchise Owners May Establish a Franchisee Association

Recent developments have left franchisees worried and uncertain about their futures.  To advocate for greater…

3 weeks ago

Building Kidz Worldwide Franchise: Is It a Great Opportunity?

The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…

3 weeks ago

PAINT NAIL BAR Franchise Update

PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…

3 weeks ago

Is HOMEVESTORS a Great Franchise for Veterans? U.S. Veterans Magazine Says It Is.

U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…

1 month ago

Truth For Veterans: Letter to U.S. Veterans Magazine, Mona Lisa Faris

More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…

1 month ago

Franchise Reality Check Launches Brutally Honest Podcast

Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…

2 months ago