7-Eleven Sues to Force Redbox to Remove Its Kiosks Under Terminated Contract

RedBox “persists in operating” its video rental kiosks on 7-Eleven store property without permission and for RedBox’s “sole financial benefit,” despite 7-Eleven’s termination in August of the parties’ January 2015 written contract due to RedBox’s failure to honor its payment obligations, alleged 7-Eleven’s complaint Friday (docket 1:24-cv-04741) in U.S. District Court for Northern Illinois in Chicago. The chain store company seeks to recover roughly $270,000 in commissions it says RedBox owes it under the terms of the contract, plus an order compelling the defendant to remove its kiosks from 7-Eleven’s store locations. RedBox promised that in the event of the contract’s termination, it would remove the kiosks from the plaintiff's stores “at its sole cost and expense,” said the complaint. The defendant also agreed to surrender ownership of the spaces that the kiosks occupied, and to return those spaces “to good clean condition,” it said. RedBox also agreed to continue paying the plaintiff commission revenue until the kiosks were removed, it said. Under the terminated contract, Redbox agreed to pay 7-Eleven a 10.76% commission on each DVD rental, and 8.5% on each videogame rental. The commission rate fell to 3% on sellthrough and previously viewed DVD and videogame content, said the contract. Payments were due within 20 days after the end of each calendar month, it said.