Several lawsuits have claim that 7-11 schemed to scheme to drive out franchisees in Philadelphia and South Jersey and take back their stores. More recently, a New Jersey federal court permitted a franchisees claim of an “Operation Philadelphia” to go forward under a theory of a breach of the covenant of good faith and fair dealing. The Court found that the franchisee Korchid sufficiently plead this claim as the initial stages of the proceeding. See Korchid v 7-Eleven, Inc., 2019 WL 3812472 (D.N.J. August 14, 2019).
Will we find out if Korchid ultimately prevails? Probably not – the Judge referred the case to arbitration as required the franchise agreement.www.jersey-law.com