Pret shelves expansion plans into Israel

Pret A Manger has terminated its franchise agreement with Tel Aviv-based retailer Fox Group and restaurant operator Yarzin Sella Group to launch in Israel. 

In a statement to the Tel Aviv Stock Exchange, Pret had activated a 'force majeure' clause, said Fox Group. 

Under this clause, the party is allowed to negate contractual obligations due to extreme and unforeseeable circumstances – amid the ongoing Israel-Gaza conflict. 

Speaking on the termination

Fox Group stated that Pret alleged the war would affect the ability to carry out preliminary actions needed to open operations as set out under the license agreement. 

“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,” said a Pret A Manger spokesperson.

Reports in Israeli media said that Fox Group is planning to oppose Pret’s decision and is preparing to reject the brand’s claims.

Pret announced the 10-year franchise deal in January 2023 and planned to open 40 licensed stores in Israel by 2033 - the first of which was set to open in December 2024. 

As part of the agreement of principles, it was agreed a joint Israeli company would be established, to which the franchise would be granted, with Fox holding 75% and Yarzin Sella Group holding 25% of its share capital. 

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