Future Retail terminates franchise agreement with 7-Eleven
Future Retail has terminated its franchise agreement with multi-brand mini-mart chain 7-Eleven Inc after store opening targets were not met, the business announced on October 5.
The decision to terminate the franchise agreement was a mutual one, according to the two businesses, the Press Trust of India reported. The termination will not have any financial or business impact on Future retail and was made as store opening targets and franchisee fee payments were not met, Future Retail said in a statement on October 5.
Future Retail and 7-Eleven first announced the beginning of their franchise agreement in 2019 when the businesses stated that Future Retail would run 7-Eleven’s first branded store in India. The businesses also planned that Future Retail would set up new 7-Eleven store from scratch across India and also convert some of its existing retail stores into 7-Eleven outlets.
The pandemic caused a halt to construction and retail operations across India for a significant portion of 2020. Local media reports in 2020 said that the pandemic had also halted the implementation of the franchise agreement but neither business had made an official statement on the matter at that time.
Future Retail also operates similar local chain stores Nilgiris and Foodhall, which it will continue to do.
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