Future Retail on Tuesday announced mutual termination of agreement signed with 7-Eleven INC in February 2019 for developing and operating 7-Eleven stores in the country.
The agreement has been terminated with mutual consent as Future7-India Convenience Limited, Future Retail's wholly owned subsidiary which signed the agreement, was not able to meet the target of opening stores and payment of franchisee fees, Future Retail said in an exchange filing.
"...we would like to refer to Master Franchise Agreement dated 28th February, 2019 executed between Future7-India Convenience Limited, company's wholly owned subsidiary ("Future-7") and 7-Eleven INC, and also executed by the company and Future Corporate resources Private Limited ("FCRPL") as confirming party and Controlling Principal for developing and operating 7-Eleven® stores within India, is now terminated pursuant to execution of Mutual Termination Agreement..." the filing said.
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Future Retail said the termination of agreement will not have any financial or business impact on the company as the arrangement was at subsidiary company level.
As per the master franchise agreement signed in 2019, the first 7-Eleven store was expected to open in 2019. Besides, the new master franchisee was to build 7-Eleven stores as well as convert some of its existing locations to the 7-Eleven brand.
Future Retail had said then that 7-Eleven's entry into the country would modernise the small-retail environment and bring greater convenience to shoppers.
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