Franchising

Subway inks master franchise agreement for Brazil

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May 9, 2022

Subway and SouthRock, a Brazil-based multi-brand restaurant operator, have signed a master franchise agreement to expand Subway's footprint in Brazil, one of the company's largest markets, according to a press release.

Under the agreement, SouthRock, a licensed operator of Starbucks and TGI Fridays in Brazil, will acquire the exclusive rights to manage and develop all Subway locations in the market, including providing operations, development and marketing support to franchisees. The partnership will accelerate Subway's growth, with SouthRock expanding Subway's current footprint of more than 1,600 locations in Brazil over the multi-decade term of the agreement.

"As Subway's first master franchise agreement in Latin America, and the company's largest agreement in an established Subway market, today's announcement with SouthRock marks an exciting moment in our global and regional expansion plan," John Chidsey, chief executive officer for Subway, said in the release. "We are looking forward to leveraging SouthRock's extensive knowledge of the Brazilian market and guest preferences as we begin this new chapter for Subway in Brazil."

SouthRock plans to update existing and open new restaurants in Brazil with Subway's modernized "Fresh Forward" design, meeting the needs of today's guests with comfortable, inviting indoor dining spaces. In addition, they will expand delivery and online ordering options, with a strong digital first strategy.

"At SouthRock, we pride ourselves on our hands-on approach to food and beverage management in Brazil with a focus on building trust with our partners (how we call our employees) and empowering them to deliver experiences that exceed our customers' expectations," Ken Pope, founder and CEO, SouthRock, said in the release. "Our management team's track record is one built on growth through operational excellence, and our values are based on our respect for our employees and the communities we serve. SouthRock is committed to caring for and growing the Subway brand, now and into the future."

Subway operates more than 37,000 restaurants in more than 100 countries.