Baker McKenzie, Kirkland & Ellis, Haiwen & Partners and Han Kun Law Offices advised on one of the largest master franchise agreements in the fast-food industry covering international chain Subway’s plan to open 4,000 stores in mainland China in the next two decades.
Baker McKenzie represented Subway in signing the new master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development (FRS), led by its Hong Kong office partner Tracy Wut, special counsel Grace Wong and Dallas office partner Mohammad Alturk, with support from Shanghai partner Zhou Wenxin at FenXun Partners.
Kirkland and Haiwen advised the consortium of private investors, including Asia Investment Capital, that funded the FRS.
Kirkland’s team was led by corporate partners Yu Peng and Vincent Zhou, and technology and IP transactions partners Jeff Norman and Wang Min. The team also included: government, regulatory and internal investigations partners Cori Lable and Qiu Yue; tax partner Mike Carew; environmental transactions partner Michael Saretsky; ESG and impact partner Alexandra Farmer; investment funds partner Nicholas Liew; debt finance partner Karen Ho; and litigation partner Ho Yi Chin.
Partner Wang Lei led the Haiwen team, with support from international partner Wu Shan, IP partner Ma Qiang, data compliance partner Yang Jianyuan, tax partner Guo Yongmao and labour law partner Wu Qiong.
Han Kun represented one of the major investors who contributed to the consortium of private investors involved in the deal.
Previously, Subway’s two operating entities in mainland China were held by Subway International Holdings BV until May, when various business changes were completed and the shareholders of the operating companies were changed to the FRS.
Under the master franchise agreement, the FRS will have exclusive rights to manage and develop all Subway stores in China and expand its market seven times across the country.
