7-ELEVEN, Inc. to Keep Seized Florida Franchise of Pursharth Kapoor

7-Eleven, Inc. has settled its lawsuit against franchisee Kapoor Brothers, Inc. and Pursharth Kapoor in the United States District Court, Middle District of Florida, Orlando Division.

(UnhappyFranchisee.Com)  While the terms of the settlement are not known, one thing is clear:

Pursharth Kapoor is out, and 7-Eleven, Inc. has his Merritt Island, FL franchised store.

According to the “Agreed Final Judgment”:

Accordingly, the Joint Motion for Entry of Agreed Final Judgment is GRANTED and it is ORDERED AND ADJUDGED that Defendants Pursharth Kapoor and Kapoor Brothers, Inc., their agents, servants and employees, and those people in active concert or participation with them who receive actual notice of this preliminary injunction, by personal service or otherwise, be and they ARE HEREBY PERMANENTLY RESTRAINED AND ENJOINED from directly or indirectly:

(a) Using or otherwise infringing upon any of 7-Eleven’s Marks, including 7- Eleven®, or any confusingly similar trademark, service mark, logo or trade name;

(b) Causing a likelihood of confusion or misunderstanding as to the source or sponsorship of Defendants’ businesses, goods, or services;

(c) Causing a likelihood of confusion or misunderstanding as to Defendants’ affiliation, connection or association with 7-Eleven and its franchisees or any of their goods and services; and

(d) Maintaining, operating, engaging in or having any financial or beneficial interest in a convenience store business located at: (i) 1105 Courtenay Parkway, Merritt Island, Florida 32593; (ii) 400 W Merritt Island Causeway, Merritt Island, Florida 32592; or (iii) the site of any former 7-Eleven store within 2 years of it last being operated as a 7-Eleven.

Read the Kapoor lawsuit complaint:  7-Eleven, Inc. v. Kapoor Brothers Inc. et al

Read the 7-Eleven/Kapoor:  Final Judgment and Permanent Injunction

The Kapoor dispute is one of a seemingly growing number of sudden 7-Eleven, Inc. franchise terminations and store seizures.

Pursharth Kapoor signed an individual franchise agreement effective January 16, 2012 for the right to operate and share in the profits of the 7-Eleven store in Merritt Island, FL.

Kapoor was charged a franchise fee of $141,500.

In connection with the franchise fee and franchise agreement, franchisee Kapoor entered into a promissory note agreeing to pay 7-Eleven $79,950 in monthly payments.  According to the complaint, the Note would be “immediately due and payable in full upon a breach of the Corporate Franchise Agreement.”

Less than a year into the relationship, 7-Eleven’s Asset Protection Group began investigating Kapoor’s store.  They allege they observed Kapoor’s brother (and store manager) “improperly and fraudulently utilizing… voiding keys on the POS register system.”

7-Eleven alleged that an audit of the store revealed “inventory being delivered for which 7-Eleven never received invoices,” indicating that Kapoor’s store was selling merchandise off the books for which it would receive full profit (rather than the 48% it was due).

Additionally, the suit alleged “at least one regularly employed person was working either without the franchisee having properly verified employment eligibility.

Some 7-Eleven franchise owners claim that 7-Eleven, Inc. is on a campaign to “clean house” and is targeting East Asian and Indian franchisees for expulsion from the system.

Also read:

7-ELEVEN on UnhappyFranchisee.Com

7-Eleven Franchise Complaints

7-ELEVEN Stole Our Store – Dev Patel’s Story

7-ELEVEN Protest Over 7-11 Franchise Store Seizure (Pictures)

7-ELEVEN Dev Patel Radio Interview on Riverside Franchise Seizure (Audio)

7-ELEVEN Franchise Owner Claims Franchisees Are Being Bullied

7-ELEVEN Franchise Owners Complain, Allege Churning



Contact UnhappyFranchisee.com

TAGS: 7-Eleven, 7-Eleven franchise, 7-Eleven protest, 7-Eleven lawsuit, 7-11 franchise, 7-11 Riverside CA, 7-Eleven litigation, 7-eleven franchise complaints, Kapoor Brothers, Pursharth Kapoor, 7-Eleven store seizures

One thought on “7-ELEVEN, Inc. to Keep Seized Florida Franchise of Pursharth Kapoor

  • krishana

    EDITOR’S NOTE: This appears to be a satirical piece originally posted on Abril Uno http://abriluno.com/7-11-brand-sold-to-indian-conglomerate-tata-group/

    In a surprising move, Indian conglomerate Tata Group announced yesterday the acquisition of Dallas, TX based 7-Eleven, Inc for an undisclosed sum.

    Apoo Nahasapeemapetilon, Vice President of Operations for Tata Group said that because this is the first time the company is venturing into the convenience store business, it will setup a new corporation under the Tata Group of companies that will concentrate exclusively on retailing and merchandising.

    The new company, to be called Tata Marin, will handle all business generated by the newly acquired 7-Eleven Inc., which currently has more than 50,000 outlets worldwide.

    Nahasapeemapetilon, once a 7-Eleven franchisee himself when he lived in Springfield, Oregon, said that it is an exciting move for the company since it expands Tata Group’s reach, not only within India, but to far reaches of the West as well as in many Asian countries.

    Simpson Kelkar, a 7-Eleven franchisee living in San Francisco, and who currently owns fifty-one 7-Eleven outlets in the city said that he was equally excited about Tata Group’s acquisition. Kelkar, who also originates from India, said that he will definitely look into opening several stores in his native country, and maybe go back permanently to semi-retire.

    Nahasapeemapetilon said that the two companies are still finalizing all the paperwork and tying all the loose ends. But the deal should be final within the end of this month.

    Word on Tata Group’s acquisition quickly spread within many areas in India, and has sparked an onslaught of inquiries on how and where to apply for a franchise.

    It is not immediately known whether 7-Eleven Inc.’s headquarters will be moved or simply outsourced to other companies in India.

    7-Eleven is part of an international chain of convenience stores. 7-Eleven, primarily operating as a franchise, is the world’s largest operator, franchisor, and licensor of convenience stores with more than 50,000 outlets, surpassing the previous record-holder, McDonald’s Corporation.The stores are located in 16 countries with its largest markets being Japan (15,000), the United States (8,200), Thailand (6,800), Indonesia, Canada, the Philippines, Hong Kong, Taiwan, Malaysia, and Singapore.

Leave a Reply

Your email address will not be published. Required fields are marked *