Restaurant group Collins Foods (ASX:CKF)
has inked a deal to run the franchise business of KFC in the Netherlands over the next decade with Yum! Brands.
The 10-year deal sets out plans to expand up to 130 new KFC restaurants in the Netherlands, quadrupling Collins' Dutch store count of 29.
The agreement will start with an initial term of five years starting on the last day of this year, with a conditional option for Collins Foods to extend the term by a further five years.
The remuneration structure will see KFC pay Collins Foods a fee for running the Dutch market with various incentives contingent on performance metrics.
Under the deal, Collins Foods is slated to “develop, manage, market, support and operate the KFC business in the Netherlands, including the introduction, management and oversight of existing and future franchisees”.
New restaurants will be a mix of stores owned by the company and independent franchisees.
Shares in Collins Foods (ASX:CKF)
are trading 6.5 per cent higher at $12.76.