Subway inks largest master franchise deal for China expansion
The deal with FRS will involve the opening of over 4,000 restaurants.
US-based restaurant brand Subway signed a master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development (FRS), the largest in the company’s history, to expand its business in China to open around 4,000 restaurants in the next 20 years.
In a statement, Subway said the partnership which will expand Subway’s footprint by over seven times, will give FRS exclusive rights to manage and develop its stores in Mainland China.
"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 Subway Global CEO John Chidsey.
"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," he added.
The agreement is Subway’s 13th master franchise and development deal in the past two years and is one of the largest in the quick service restaurant industry. This brings the company’s future restaurant commitments to over 9,000.
Subway aims to double its restaurants in the Asia Pacific to more than 6,000 restaurants in the next five years from 3,500.