Opinion ID: 26691
Heading Depth: 3
Heading Rank: 1

Heading: The Franchise and Money Order Agreements

Text: 7-Eleven is an operator and licensor of convenience stores. Although some of 7-Eleven’s stores are company-operated, most are operated by franchisees. This case concerns the theft of nearly $2 million in American Express money orders by one former 7-Eleven franchisee, Feras Alfares. Alfares operated three 7-Eleven stores in the Philadelphia area. 7-Eleven and Alfares entered into three detailed Store Franchise Agreements that governed their relationship with respect to the three stores operated by Alfares. The Store Franchise Agreements expressly provided: 21. Independent Contractor. FRANCHISEE shall be an independent contractor and shall control the manner and means of the operation of the Store and exercise complete control over and responsibility for all labor relations and the conduct of FRANCHISEE’s agents and employees, including, but not limited to, the day-to-day operations of the Store and all Store employees. FRANCHISEE and FRANCHISEE’s agents and employees shall not (i) be considered or held out to be agents or employees of 7- ELEVEN or (ii) negotiate or enter any agreement or incur any liability in the name or on behalf of, or that purports to bind, 7-ELEVEN. No actions taken by FRANCHISEE or FRANCHISEE’s agents or employees shall be deemed to be actions obligating 7-ELEVEN. FRANCHISEE acknowledges that nothing herein shall create a fiduciary or similar relationship with 7-ELEVEN. [Emphasis ours.] In 1983, 7-Eleven entered into an agreement with American Express (“Amex”) through which Amex money orders could be sold at 2 7-Eleven stores. That agreement was memorialized in the Money Order Trust Agreement and includes the following noteworthy provisions: