India's Future Retail, 7-Eleven terminate franchise agreement (updated)

Future Enterprises

05/10/2021 12:26

(Adds background on the earlier agreement)
    BENGALURU, Oct 5 (Reuters) - Future Retail  FRTL.NS  said on
Tuesday it terminated a franchise agreement with 7-Eleven Inc to
develop and operate the U.S. company's convenience stores in
India as it did not meet the targets of opening stores and
payment of franchisee fees.
    The two companies decided to mutually terminate the
agreement, which was first announced https://www.reuters.com/article/us-future-retail-7-eleven-expand-idUKKCN1QH0X5
 in 2019 stating that Future Retail would run 7-Eleven's first
branded store in India.
    Local media had reported earlier last year that the COVID-19
pandemic had stalled the implementation of the franchise
agreement.
    Future Retail, which operates local retail chains such as
Foodhall and Nilgiris, had said in 2019 it planned to both set
up new stores under the brand from scratch and to convert some
of its existing operations into the U.S. brand.
    The termination, however, would have no financial or
business impact on Future Retail, the company said in its
statement.
    

 (Reporting by Soumyajit Saha in Bengaluru; editing by
Uttaresh.V)
 ((Soumyajit.Saha@thomsonreuters.com;))