7-ELEVEN SlurpeeGate: Did NCASEF Board Members Cut Secret Deals With CEO Joe DePinto?
We’re dubbing it SlurpeeGate: An anonymous 7-11 Insider has alleged that some members of the NCASEF national franchisee association “sold out” their fellow franchisees and “dismantled” a planned protest in exchange for personal financial and political favors from CEO Joe DePinto. Neither the Board members nor association counsel Eric Karp have responded to requests for comment on the disturbing allegations.
(UnhappyFranchisee.Com) The SlurpeeGate saga began last weekend when Eric Karp, General Counsel of the national 7-Eleven franchisee association NCASEF, felt that it was so urgent that UnhappyFranchisee.Com retract an allegation that NCASEF board members had anything to do with picketing a corporate event at the MGM Grand that he came in on Valentine’s Day – a Saturday – to send us a threat that we must change it – or else.
Mr. Karp’s urgency to clarify the Board members’ roles in the protest seemed to disappear when UnhappyFranchisee.Com asked him to address unconfirmed allegations that some NCASEF Board members struck secret deals with CEO Joe DePinto to dismantle the protest – and that Eric Karp’s weekend letter was sent to ease DePinto’s ire at the protest proceeding despite the secret deals.
UnhappyFranchisee.Com has sent two letters and three emails to Mr. Karp this week requesting a response to the allegations.
We sent emails to every Board member asking for confirmation or denial of the allegations.
We published multiple posts on the potential scandal – each one ending with an invitation to confirm or refute the SlurpeeGate allegations.
We have not received a single response.
If untrue, how hard is it to say these allegations are unfounded?
If Mr. Karp feels clarification of the Board’s role in the protest is so urgent, why no response?
Was the WiFi not working at the Hilton Sandestin Golf & Beach Resort – where the board was meeting this week?
You can read the entire message we received with the “711 Gal” SlurpeeGate allegations here: 7-ELEVEN: Have NCASEF Board Members “Sold Out” 7-11 Franchisees?
Here is the latest letter we sent to Mr. Karp, which includes a summary of the SlurpeeGate allegations:
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.Eric H. Karp
General Counsel, NCASEF
WITMER, KARP, WARNER & RYAN LLP
Counsellors at Law
22 Batterymarch Street
Boston, Massachusetts 02109
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February 16, 2015
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Dear Mr. Karp:
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UnhappyFranchisee.Com has received more serious allegations regarding possible actions by certain NACSEF Board members.
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We have cautioned our readers to reserve judgement until all parties have a chance to respond to and/or refute these allegations.
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I wanted to provide you and the Board members in question an opportunity to address this 3rd party’s allegations as soon as possible. You and the members in question may provide a response via email to UnhappyFranchisee[at]gmail.com or by posting a comment to the site.
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I will make sure your responses are posted to the site promptly.
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You can read 711 Gal’s full statement here:
http://www.unhappyfranchisee.com/7-eleven-ncasef-board-members-sold-7-11-franchisees/
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Here is a snapshot of 711 Gal’s allegations
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7Eleven Gal alleges that these NACSEF Board members made side deals with Joe DePinto prior to “dismantling” the franchisee protest:
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Chairman Joe Galea: 7Eleven Gal alleges that Joe DePinto agreed to make Joe Galea part of the CEO round table and all committees in existence between Franchisees and 7-Eleven Inc. DePinto also agreed to attend his National Board meeting in Florida on February 17, 2015.
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Vice Chairman Jas Dhillon: 7Eleven Gal alleges that Joe DePinto forgave Jas Dhillon & members of the Greater Los Angeles Franchisee Owner Association $1.5M for accounts not properly reported at the store level to 7-Eleven.
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Executive Vice Chairman Jivtesh Gill: 7Eleven Gal alleges that Joe DePinto agreed to make Jivtesh Gill part of the CEO Round Table and be granted two more 7-Eleven franchisees for himself.
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Vice Chairman Serge Haitayan: 7Eleven Gal alleges that Joe DePinto agreed to make Serge Haitayan part of the CEO Round Table.
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7Eleven Gal also contends that Jas Dhillon conspired with Kathy York, President of Greater Los Angeles Franchisee Owner Association, to throw three fellow franchisees “under the bus.”
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GLAFOA President Kathy York: 7Eleven Gal alleges that Ms. York provided 7-Eleven management with “phony” documents to connect fellow franchisees Andy Khan, Jaspreet Dhillon and Navdeep Bassi to the protest.
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NACSEF General Counsel Eric Karp: 7Eleven Gal wrote “Once the protest was over and Joe DePinto was mad as hell wanted to know why the protest still went on after all the wheeling and dealing. At that time Eric Karp the Attorney of National Franchisee owners association wrote a letter to clear the role of National Owner Association its executive board and it’s involvement in the protest.”
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While 711 Gal doesn’t expressly state that you were necessarily aware of these alleged deals between board members and CEO DePinto, it seems strongly implied. Perhaps you could address that issue as well. The unnecessarily threatening tone of your letter to me on Saturday left me with the distinct impression that it was designed to appease someone at 7-Eleven, Inc., perhaps 7-Eleven, Inc. I truly hope it turns out that that was not the case.
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As an experienced attorney, I’m sure you’ll recognize that I have made a great effort to point out that 711 Gal’s statements (as far as we are concerned) remain unverified allegations, subject to further scrutiny.
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I look forward to hearing from you soon.
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All the best,
ADMIN
UnhappyFranchisee.Com
Chronology of SlurpeeGate-Related Posts
Here is a chronological list of recent SlurpeeGate posts.
2/12/15: We posted protest pictures and a franchisee account that alleged that the NCASEF board was an integral part of the protest planning:
7-ELEVEN Franchise Experience Protest Update and Photos [UPDATED]
2/14/15: We posted NACSEF counsel Eric Karp’s threatening letter saying the Board had nothing to do with planning the protest:
7-ELEVEN: NCASEF Letter re Franchisee Protest in Vegas
2/14/15: We posted a new anonymous franchisee message refuting Eric Karp’s version of events:
7-ELEVEN: Did NCASEF Initiate the 7-11 Franchisee Protest in Vegas?
2/15/15: We asked Eric Karp to respond to a detailed statement that challenged his account of events. We got no response:
7-ELEVEN: Unhappy Franchisee Response Letter to NCASEF General Counsel
2/16/15: We posted SlurpeeGate Allegations received from “711 Gal”:
7-ELEVEN: Have NCASEF Board Members “Sold Out” 7-11 Franchisees?
2/18/15: Not having received a response, we posted the UnhappyFranchisee.Com letter sent to Eric Karp 2/16/15.
ALSO READ:
Has 7-ELEVEN Declared War on its Franchisees? (Index of 7-Eleven Posts)
FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH THE 7-ELEVEN SLURPEEGATE ALLEGATIONS? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
TAGS: SlurpeeGate, Slurpee Gate, Eric Karp, Attorney Eric Karp, NCASEF, National Coalition of Associations of 7-Eleven Franchisees, 7-Eleven, 7-Eleven franchise protest, 7-Eleven franchise discrimination, 7-Eleven litigation, 7-Eleven protests, 7-Eleven franchise, franchisee associations, 7-Eleven franchisees, 7-Eleven unhappy franchisee, Joe DePinto, Joseph DePinto,
Today Eric Karp was in Florida giving his PowerPoint to all FOA Presidents ant Executive team members. Yesterday the CEO of 711 spoke to the group. Joe Depinto admitted to all present that he did appoint members of the National Executive team to his CEO round table. This was a bomb shell for Glea that the CEO sited with 7eleven Gal comments on unhappy franchisee forum. It was very sad for me and others to find out that everything unhappy is reporting is coming out to be the truth and nothing but the truth. Our national executive team has lost our trust.
And nothing will be done. This is not the first “deal” nor will it be the last.
Welcome to the club.
7Eleven Gal said DePinto agreed to attend the Nat’l board mtg as part of the deal… FOA Chicken reports that has happened.
7Eleven Gal said DePinto agreed to appoint the board execs to the CEO Roundtable and according to FOA Chicken that has happened.
7Eleven Gal said Eric Karp wrote the letter to appease Joe DePinto and that would explain the strangely antagonistic tone.
7 Eleven Gal said these members agreed to pull out of the protest and it was clear that only a small but mighty group showed up to protest.
I guess we’ll wait to hear whether Jas Dhillon & FOAGLA are forgiven for $1.5M to SEI for accounts not correctly reported.
All in all pretty depressing news. I was hoping 7Eleven Gal would be proven wrong, but it looks like DePinto, Karp, Galea, feel it is beneath them to even respond…
Not sure what all the fuss is about…the NCASEF board should be part of a Ceo round table! They represent the entire franchise community. I remember personally speaking with several NCASEF board members regarding how Joe DiPinto would not even include our NCASEF Representatives in the nblc meetings or fm renegotiation meetings and how frustrating that is. Guys- this new NCASEF board has done WAY more positive things under Joe Galea’s leadership for the franchise community then the last Ncasef board. Why do u think Joe Dipinto is ‘all of a sudden’ becoming profranchisee? It’s all the lawsuits (which Ncasef helped fund) and all the direct meetings they’ve had with Ceo Joe. Let’s not be divided but United…
Fcnowfz, I think the big fuss is that it appears that joe depinto was highly motivated to avoid a large scale protest and instead of negotiating a deal that benefited ALL franchisees (which is their job) the exec officers gave up that leverage for favors that benefit a select few.
This is a big win for Depinto because not only was the protest defused and he was saved from the negative publicity, the NCASEF is weakened cuz they now appear to be in joe’s pocket. Who will trust anything they have to say from here on out?
…and if that was Joes plan, eric carp played right into it
SEI was devastated that their chosen boy Bruce lost the NC election. They did everything they could to influence the last three elections, including arm twisting and begging.
The only reason national is getting attention from the CEO who never ever came to attend the national meeting is because the franchisees Stood up for their rights filed lawsuits and protested. National executive board ran away selling the franchisees for a pocket full of dollars for them selves and a few favors from the CEO. Believe me you they the national board members are scum and low lives.
The national executive board will settle the law suit also for a few more stores for their family members and them selves. I just heard that the FOA president of Florida Farri got a go ahead to exchange his low volume store for a different store from top 711 management as Farri has refused to file a lawsuit against 711 for gasoline commissions. I have never seen where a franchisee can exchange a store. If this information is not correct please respond anyone and clear it. Can we all exchange a store or this policy is for a few who have friends in the executive board. I guess all deals between national top managment and favors are being reported and opening our eyes. Thanks to social media maybe we can hold our leaders accountable.
Fcnowfz- How can you think this is no big deal? The board’s dues are paid by us FZs. Jas Dhillon is the leader of the FOAGLA lawsuit along with 100 other FZ. If he is playing both sides, we need to know because it a conflict of interest. I have lost any and all confidence that the board is protecting our interests. If this is true, they need to be fired or resign immediately.
FCnowFZ I agree with you on your point that the NCASEF board should be a part of the round table discussion, however it should not be at the expense of the other franchisees that they represent. They may have done some great things, but 100 good things done can be wiped out with one unethical wrong. Don’t you know the saying “whenever I do something right nobody remembers, but when I do one thing wrong nobody ever forgets”? That’s the issue here.
It is also true that FOGLA filed a lawsuit and may have been vastly funded by NCASEF, however the lawsuits filed by Soodhi and Patel were likely funded out of their own pockets.
I agree we must be united and not divided, but
1) it doesn’t have to be behind these sell outs who care about themselves and in the case of Jas Dhillon his cronies at FOAGLA more then the general membership
2) your talking up the wrong tree, we all know to be united but MOST franchises don’t have bacbone to fight and the ones who do clearly aren’t on NCASEF to the exception of those who didn’t allegedly ask for anything.
The rest of them are cowards, theives and traitors in the same boat as 711 corporate and should resign, as should ERIC CRAP their attorney. I agree It is time for a nonpartisan leader who can’t be bought like
CRASS DHILLON,
WHORE GALEA,
GIVETESH TWO STORES GILL,
AND SERGE HATESUS
If Eric Karp cannot handle unhappy forum where he wrote a letter on valentines day to get his point across, failing miserably, lying at best , stating “facts” wrongly, and if 711gal could shut him up so easily, then how does he handle big time attornies like 711 corp has. As a franchisee i can expect the dvr lawsuit that Eric Karp has filed will crash and burn.
The DVR lawsuit crashed because Bruce Maples dragged his feet for two years and did nothing….hoping his master JDP would be happy.
What Bruce Maples did is known as delay tactics. It is common knowledge that he was close to Joe Pinto. He delayed it intentionally is anybody’s guess !
Eric Harp has openly denied any national participation in the protest but there are pictures to prove otherwise. What was the hurry for such a senior attorney to pen it on the media especially when the very media is supportive of the franchisee cause.
How many have seen Wag The Dog . Does Joe Pinto remind you of Robert De Nero, the spin doctor . Have we lost focus on the REAL ISSUES. Susan Corral a employee of 7-Eleven has accused the company of discrimination. Make your guess. Please stay on the right side of a cause and . That is Real
Folks,
This site plays off of everyone’s distrust for one another. Not surprisingly the same site who was working for franchisees and helped push SEI to the table is the same site that now is attacking the elected FZ representatives. My guess is that a lawyer is behind this site. They are the only one who would gain from this division. It’s no wonder to me who that person would be. If you truly believe that Joe, Jas, Jivtesh, Hashim, Serge, Kathy and Fari would sell us out than you belong on this site. I bet you get your news from the Enquirer.
Tired:
Thanks for your comment. To clarify, this site just posts the information it receives, and then asks all sides to respond. Every viewpoint and every opinion is invited and welcome. We routinely invite SEI to provide clarifications and rebuttals which we will post word-for-word, but never receive a response. Our preference is to have both sides of every issue represented so our readers can decide for themselves.
When we receive Anonymous accounts, as we did from 7Eleven Gal, we do not say they are true or that we believe them, because we have no way of knowing. In the case of the 7Eleven Gal allegations, we sent two letters and emails to NCASEF General Counsel Karp asking for a rebuttal or a correction. We sent emails to every person you just named for their sides of the story. We did not receive a single response from NCASEF or any of the Board members… I’m sure all were instructed not to respond.
To be completely honest with you, the ADMIN of this site was hoping to receive a response that proved 7Eleven Gal wrong, or at least showed how he/she may have misinterpreted negotiations. Hence the repeated attempts to get a response. Many of the franchisees you listed are those whose actions and lawsuits we have loudly supported. While I’ve never met or spoken to them, it was HARD to post 7Eleven Gal’s allegations about them, and the lack of response is more than a little depressing.
There’s no victory for anyone if 7Eleven Gal’s allegations are correct, least of all this site. We hold franchisee attorneys such as Mr. Karp in high regard and herald them as champions of franchisees. We don’t want to believe otherwise. We believe in franchisee solidarity and strong franchisee associations. The last thing we would want is divisiveness among franchisees, because if franchisees don’t come together effective resistance is pretty much futile.
You write: “Not surprisingly the same site who was working for franchisees and helped push SEI to the table is the same site that now is attacking the elected FZ representatives.”
You are incorrect that we are attacking elected FZ representatives. We are practically BEGGING for their side of the story. We know that such matters are rarely as black and white as representatives you know and trust suddenly “selling out” their friends and fellow countrymen. But what can we do when no one responds?
The whole situation is disheartening. We are not surprised that SEI and Joe DePinto do not “lower themselves” to respond to what is reported on UnhappyFranchisee.Com. Franchisors generally refuse to “validate” franchisee opinions when they are in forums they can’t control (sites they secretly check for new comments daily).
But it is disturbing that the national franchisee coalition would suddenly treat a sympathetic website that clearly advocates for the rights of its members with the same kind of contempt we’d expect from SEI. Like it or not, 7-Eleven franchisees are reading this site, and NCASEF’s refusal to engage in even minimal dialogue is not so much an affront to us as it is to 7-Eleven franchisees.
So, the invitation for rebuttal, clarification, correction remains open and will remain open. If things on this site seem pretty one-sided, it’s usually because the other side won’t engage in open and honest dialogue.
Tired.. Thank you for your support. You never mentioned if you were a FZ or just a corp. goonie.
Please keep in mind that we don’t make these comments for fun, or at least myself. Please allow the ones to scared or timid to speak up for themselves to at least have an outlet without being belittled by someone who either has no idea what they’re speaking on or whose pockets are padded just as well as the officers listed.
ADMIN
As you must know attorneys are not cheap. The money it would cost for Mr. Karp to reply to such ridiculous accusations would come at the expense of the NCASEF. I am not concerned that 7Eleven Gal made the accusations. I am well aware of the dysfunction within the NCASEF. What bothers me is that this site and you yourself ADMIN have blown them up to be bigger than what they are. It seems to me that you are giving them credence that they should not have. What I read in your comments is that they need to be defended. Asking not once but numerous times for a response and alluding that no response is justification of these accusations.
CaliFZ – My comments are not directed at how franchisees feel and I believe every franchisee should have a voice and feel that they are free from attack for speaking their minds. But be careful – when you lie down with dogs you might wake up with fleas.
Tired..I lied down with the dogs over 25 years ago. But never caught fleas, until this past decade.
How long have you been a FZ? How many stores have you lost recently? I could go on but why? And be real, if Mr. Karp wanted to respond he could and it wouldn’t cost him a dime, I haven’t been billed yet…
Tired says: “As you must know attorneys are not cheap. The money it would cost for Mr. Karp to reply to such ridiculous accusations would come at the expense of the NCASEF.”
Yes, Tired. I’m sure Mr. Karp hasn’t responded because he’s trying to keep his billable hours down, especially after the Florida trip.
I’m sure a CEO’s concerns warrant the expense of drafting a letter on a Saturday afternoon, but answering the concerns of the franchisees the NCASEF is supposed to represent is cost-prohibitive.
Thanks for clearing that up. Mystery solved.