Negotiating International Development Arrangements in a Franchise System

May 2022

Abstract

International expansion often involves the creation of some form of business relationship with a party that resides in the local market. Yum! Brands is a global success story, with around 54,000 restaurants in more than 155 countries and territories across its main brands, KFC, Pizza Hut and Taco Bell.. Successful and quite sophisticated business partnerships in many countries have underpinned that growth and development. Many other consumer brands have entered new markets using some form of joint venture, area development, master franchise or licence arrangement. This article draws upon the experiences of Sally Glover, Chief Legal & Corporate Affairs Officer of KFC in Australia, and Stephen Giles, a partner with global law firm Norton Rose Fulbright in negotiating and documenting international development agreements.

Authors

Sally Glover

Chief Legal and Corporate Affairs Officer, KFC South Pacific, Australia

Sally is the Chief Legal and Corporate Affairs Officer for KFC South Pacific, the franchisor of the iconic KFC brand in Australia and New Zealand. KFC is a subsidiary of NYSE listed Yum! Brands Inc. Sally is a general counsel with more than 25 years’ experience. Before joining KFC, Sally held senior roles at Constellation Wines, Pfizer and the Premier’s Office in South Australia.

Companies

KFC South Pacific

Yum! Brands, Inc., based in Louisville, Kentucky, has over 54,000 restaurants in more than 155 countries and territories primarily operating the company’s restaurant brands – KFC, Pizza Hut and Taco Bell – global leaders of the chicken, pizza and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2021, Yum! Brands was named in the Dow Jones Sustainability North America Index and was ranked on Newsweek's list of America's Most Responsible Companies.

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