Future Retail said on Tuesday it terminated a franchise agreement with 7-Eleven Inc to develop and operate the US company's convenience stores in India as it did not meet the targets of opening stores and payment of franchisee fees.
The two companies decided to mutually terminate the agreement, which was first announced in 2019 stating that Future Retail would run 7-Eleven's first branded store in India.
Media reports earlier last year had said that the Covid-19 pandemic had stalled the implementation of the franchise agreement.
Future Retail, which operates local retail chains such as Foodhall and Nilgiris, had said in 2019 it planned to both set up new stores under the brand from scratch and to convert some of its existing operations into the US brand.
The termination, however, would have no financial or business impact on Future Retail, the company said in its statement.