Yum! Brands terminates franchise agreement in Türkiye

ISTANBUL

Yum! Brands announced on Wednesday it has terminated its franchise agreements with franchisee İş Gıda, the owner and operator of all KFC and Pizza Hut restaurants in Türkiye, after failure by İş Gıda to meet Yum! Brands’ standards.

“Prior to termination, Yum! Brands engaged with İş Gıda over several months to provide assistance and resolve key issues, but İş Gıda was ultimately unable to maintain compliance with our standards and adhere to fundamental provisions of our franchise agreements.” Said Chris Turner, Chief Financial and Franchising Officer at Yum! Brands.

The termination affects 283 KFC and 254 Pizza Hut restaurants in Türkiye, said Yum! Brands, adding that it expects the restaurants to close at least temporarily.

Yum! Brands said it remains committed to the region and is working to reopen as many of the restaurants as possible in the future.

Yum! is separately taking legal action pursuant to the terminated franchise agreements.

İş Gıda is a subsidiary of İş Holding.

The owner of İş Holding had also served as Yum!’s master franchisee in Germany for KFC and Pizza Hut for the past two years, the company said.

In December 2024, Yum! re-acquired the master franchise rights to the German business and resumed management of that market.

There is no impact in Germany from the termination in Türkiye, the company said.