India’s Future Retail, 7-Eleven terminate franchise settlement


BENGALURU, Oct 5 (Reuters) – Future Retail (FRTL.NS) mentioned on Tuesday it terminated a franchise settlement with 7-Eleven Inc to develop and function the U.S. firm’s comfort shops in India because it didn’t meet the targets of opening shops and cost of franchisee charges.

The two corporations determined to mutually terminate the settlement, which was first introduced in 2019 stating that Future Retail would run 7-Eleven’s first branded retailer in India.

Local media had reported earlier final yr that the COVID-19 pandemic had stalled the implementation of the franchise settlement.

Future Retail, which operates native retail chains reminiscent of Foodhall and Nilgiris, had mentioned in 2019 it deliberate to each arrange new shops beneath the model from scratch and to transform a few of its present operations into the U.S. model.

The termination, nevertheless, would don’t have any monetary or enterprise influence on Future Retail, the corporate mentioned in its assertion.

Reporting by Soumyajit Saha in Bengaluru; modifying by Uttaresh.V

A man walks inside the Big Bazaar retail store in Mumbai, India, November 25, 2020. REUTERS/Niharika Kulkarni/File Photo