KFC Franchisees Face Losing Licences

October 31, 2007 by Cris | 0 Comments

The West Australian:

Question marks hang over the future of the KFC chain in WA after claims that the world’s biggest fast-food company, which owns the brand, is refusing to renew the franchise licences of the popular restaurants.
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Peel Labor MP Paul Papalia told State Parliament yesterday that US-based Yum Foods International, which owns more than 34,000 restaurants in 100 countries, had offered to buy the 46 KFC restaurants in WA for significantly less than their market value.

It is understood the chain’s WA operator, Competitive Foods, has refused the offer.

As a result, Yum can simply resume the licences one by one as they lapse over the next 20 years.

The first licence to expire is that of KFC in Rockingham on November 19. More.

In Basic Guidelines, Law & Agreements, Franchises, Restaurants

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