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- Collins Foods (CKF) Dutch subsidiary, Collins Foods Netherlands Management, signs an agreement with KFC Europe to bring the franchise to the Netherlands
- Under the agreement, Collins Foods will be appointed as KFC’s corporate franchisee in the Netherlands under a corporate franchise agreement (CFA)
- The CFA lays out a framework for the development of up to 13o new KFC restaurants in the next 10 years
- The CFA is effective from December 31, 2021, and will run for an initial five years with Collins Foods having the option to extend it a further five
- Collins Food closed up 6.93 per cent at $12.81 per share
Collins Foods (CKF) Dutch subsidiary, Collins Foods Netherlands Management, has signed an agreement with KFC Europe, a subsidiary of Yum! Brands.
Under the agreement, Collins Foods will be appointed as KFC Europe’s corporate franchisee in the Netherlands under a corporate franchise agreement (CFA).
Under the CFA, Collins Foods will develop, manage, market, support and operate the KFC business in the Netherlands.
This also includes the introduction, management and oversight of existing and future franchises.
The CFA lays out a framework for the development of up to 13o new KFC restaurants in the next 10 years.
KFC’s Managing Director for Europe Oleg Pisklov is excited by the partnership.
“We are delighted to put in place a corporate franchise agreement with Collins Foods covering the Netherlands,” Mr Pisklov commented.
“We have full confidence that Collins Foods will be able to drive rapid growth of the KFC Netherlands restaurant network, rolling out new restaurants that they will operate, while supporting existing and new franchises.”
The CFA is effective from December 31, 2021, and is subject to satisfaction of conditions based on meeting various contractual requirements.
It will run for an initial five years with Collins Foods having the option to extend it a further five.
Collins Foods will also acquire all relevant assets, contracts and employees of KFC required to run KFC Netherlands.
Company CEO and Managing Director Drew O’Malley commented on what he called a true milestone for the company.
“Today’s announcement marks a true milestone in the progression of Collins Foods’ strategy in Europe. The corporate franchise agreement in the Netherlands is an exciting opportunity that allows us to more fully leverage our scale, experience and operational capabilities in Europe for the benefit of both the company and the KFC brand,” Mr O’Malley said.
“We believe there is substantial opportunity for restaurant growth in the Netherlands given KFC’s low penetration rate relative to developed markets and either Quick Service Restaurant brands.”
Collins Food closed up 6.93 per cent at $12.81 per share.
