Australia’s biggest multi-brand food franchisor Retail Food Group Limited
(ASX:RFG) is pushing its newly acquired Gloria Jean’s business into China.
The company has partnered with Tian Jin Sen Yong Tai Co Limited, who are a subsidiary of GouBuLi, to target expansion into the world’s second biggest economy.
Under the deal Retail Food will hold a 20 per cent stake in the joint venture with the remaining 80 per cent interest held by the joint venture partner.
CEO Tony Alford says the deal will give the company immediate revenue through an initial $6 million licence fee together with scope for future earnings by way of profit share and supply-side opportunity.
Retail Food Group reported a net profit of $36.86 million in the 2014 financial year.
