KFC introduced the customer of its eating places and franchise rights in Russia

KFC introduced the corporate that’s going to buy all KFC eating places and franchise rights in Russia.

Yum! Manufacturers, the company working the model KFC, on October 24 introduced in a press launch it entered right into a sale and buy settlement to switch possession of all KFC belongings in Russia.

Good Service Ltd, one of many present KFC franchisees in Russia, will purchase the 70 eating places owned by Yum! in addition to the working system and grasp franchise rights. It subsequently contains franchise proper contracts for the community of all KFC franchised eating places.

Good Service is managed by Konstantin Yurievich Kotov, an entrepreneur who additionally was a part of the Douma within the 650,000-people metropolis of Izhevsk, and Andrey Eduardovich Oskolkov. They have been already franchisees of 41 KFC eating places.

KFC didn’t talk the sale value. In accordance with Kommersant, a Russian enterprise newspaper, the sale is near 1.3 billion rubles (21 million {dollars}). It provides that every one KFC eating places, together with franchisees, will must be rebranded for Rostic’s, a Russian quick meals firm serving fried rooster that already had a number of eating places co-branded with KFC. Rebranding may value one other 1.3 billion rubles for Good Service.

Nevertheless, it’s not sure whether or not all eating places will settle for turning into a franchisee for Rostic’s. In contrast to McDonald’s which had solely three franchisees and already left Russia, the virtually 1,000 KFC eating places positioned in Russia are managed by many unbiased homeowners.

Yum! in July introduced that it had transferred possession of all its Pizza Hut franchise belongings to an area operator who initiated the method of re-branding areas to an idea unrelated to Yum!.

Anticipated for later this 12 months, the completion of the sale of KFC in Russia stays topic to regulatory and authorities approvals.

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