A few 7-eleven owners formed a labor union

Aug 4, a few 7-eleven’s franchise owners formed a labor union and expressed their wish to bargain collectively with 7-eleven Japan about pricing and rate of royalties.

The number of the owners is 230. 7-eleven Japan’s stores are over 12000.

7-eleven Japan says franchise owner is not worker and their “labor union” is not legal labor  union.

In Japan franchise law does not exist. The owners insists on acts protecting franchise owners.

7-Eleven to accept JFTC’s order

July 28, according to Nihon Keizai Shinbun, Seven-Eleven Japan is set to accept JFTC’s order to cease discount banning and allow its franchise stores sell food products close to their expiry at discount prices.

Seven-Eleven is biggest convenience store in Japan, so the decision will affect rivals.

7-eleven to pay 15% of franchisees’ expired food costs

June 23, 7-eleven announced that they are going to pay 15% of their franchisees’ costs of expired food.

According to their contract, the costs of expired food are franchisees’ charge.

So, 7-eleven's discount banning is imposing a huge costs of expired food on franchisees.

This means 7-eleven admitted part of their doings are unfair, but  JFTC’s order is threat to their business because JFTC orders to cease discount banning entirely, so they may appeal to JFTC.

JFTC ordered 7-eleven to cease discount banning

June 22, JFTC ordered 7-eleven to stop prohibiting its franchise stores from offering discounts.

According to JFTC’s release, though franchisee may price their items in 7-eleven’s  franchise contract, 7-eleven controls the price of franchise stores in fact.

JFTC said it was abusing franchiser’s position of superiority and illegal.

Antitrust Law amended

June 3, Act on Prohibition of Private Monopolization and Maintenance of Fair Trade, antitrust law in Japan, was amended in the Diet.

By the amended law, FTC is able to impose a surcharge in case of dumping, private monopolization and abusing their position of superiority in addition to the bid-rigging and cartel.

JFTC to order 7-Eleven to cease discount banning

May 29, according to  Nihon Keizai Shimbun, JFTC decided to order Seven-Eleven Japan Co.,Ltd. to cease to ban their franchisees from discounting.

JFTC thinks the banning discount is abused franchiser’s position of superiority which is unfair trade practice that Act on Prohibition of Private Monopolization and Maintenance of Fair Trade prohibits.

Almost all franchise stores are banning discount, so this is not only 7-eleven’s   problem, affects the whole franchise stores industry.