Baker McKenzie advised Subway in Master Franchise Deal for Mainland China Expansion
Baker McKenzie, a leading global law firm, provided legal counsel to Subway, a renowned international restaurant brand, about its recently formed master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd. (FRS). This agreement represents a major step for Subway as it aims to expand its footprint in Mainland China.
FRS, backed by a consortium of private investors, including Asia Investment Capital, has committed to opening approximately 4,000 restaurants in Mainland China over the next two decades. This expansion plan will significantly amplify Subway's current presence in the market, growing it by more than seven times. In addition, FRS will assume exclusive management and development rights for all Subway locations in Mainland China. This landmark agreement stands as Subway's largest master franchise agreement to date and is regarded as one of the largest in the quick-service restaurant (QSR) industry as a whole.
"This agreement is a significant milestone in Subway's international growth strategy as we continue to focus on strategically expanding our footprint and maintaining our position as one of the world's largest restaurant brands," said John Chidsey, Subway's Global Chief Executive Officer.
"China is a key market with significant long-term growth opportunity, and we look forward to bringing the Subway experience to even more guests in the region," Chidsey added.
Baker McKenzie assembled a collaborative team spanning various practices and offices to handle the transaction, providing comprehensive guidance on corporate, franchising, tax, and regulatory aspects. The team was skilfully led by Partners Tracy Wut (Hong Kong) and Mohammad Alturk (Dallas), with valuable support from Special Counsel Grace Wong (Hong Kong) and other accomplished professionals, including Vivian Choi, Curtis Tse, Luke Christianson, Nancy Lai, Mini vandePol, Gerald Lam, and FenXun partner Wenxin Zhou.
"We could not be more honoured to be able to assist our client on this important transaction and be able to play a role in their growth story. We look forward to continue supporting our clients with their future legal and business needs," Tracy Wut said about the deal.