Pret a Manger has terminated its franchise agreement to launch in Israel.
The food to go chain had planned to open 40 stores in Israel by 2033 as part of a 10-year franchise deal, announced in January 2023, with Tel Aviv-based retailer Fox Group and restaurant operator Yarzin Sella Group.
In a statement to the Tel Aviv Stock Exchange on 31 May, Fox Group said Pret had activated the force majeure clause, which allows a party to negate contractual obligations due to extreme and unforeseeable circumstance.
Israeli media reports that Fox Group is planning to oppose the move.
As part of the deal, Fox Group and Yarzin Sella Group would have held 75% and 25% of the shares in a jointly owned company to operate the brand, and had pledged ILS 36m (£7.6m) towards the venture.
Founded in London in 1986, Pret now operates more than 650 outlets across 18 markets. The group plans to open up to 150 international stores in 2024, and recently extended its partnership with A&W in Canada.
Speaking to the World Coffee Portal, a Pret spokesperson said: “We have taken the difficult decision to end our current agreement with Fox Group and Yarzin Sella Group. We tried to delay this decision for as long as possible, but the significant ongoing travel restrictions have meant that our teams have not been able to conduct the checks and training needed to set up Pret in a new market. We want to express our sincerest thanks to the teams at Fox Group and Yarzin Sella Group, who have been supportive and extremely collaborative partners.”
