Riyadh – Mubasher: Raydan Foods Company has signed a commercial franchise contract with Al-Raya Company for Restaurants Ltd in Egypt.
The contract includes granting the right to a commercial franchise in Egypt and converting the branches of the subsidiary company into branches of a commercial franchise, the Saudi firm said in a bourse disclosure on Thursday.
The value of the deal amounts to EGP 7 million, including commercial franchise fees of EGP 500,000 to be paid once and EGP 800,000 as franchise revenue for the first year of the contract as well as the value of the assets owned by the subsidiary.
The 10-year renewable deal is expected to have a positive impact on the company’s financial results for the fourth quarter (Q4) of 2021.
