Yum Brands has discontinued franchise agreements with franchisee IS Gida, which owns and operates all KFC and Pizza Hut stores in Turkey and is a part of IS Holding. 

Yum Brands said the decision was made because IS Gida failed to meet Yum Brands’ standards. 

“Having ‘3C’ franchisees that are capable, capitalized and committed is essential to our business, and we strive every day to provide them the necessary support and tools for success, while asking our partners to deliver high-quality experiences for our customers,” said Chris Turner, chief financial & franchising officer, Yum Brands. 

“Prior to termination, Yum Brands engaged with IS Gida over several months to provide assistance and resolve key issues, but IS Gida was ultimately unable to maintain compliance with our standards and adhere to fundamental provisions of our franchise agreements.”

This move affects 283 KFC and 254 Pizza Hut locations in Turkey, and Yum Brands anticipates the restaurants to close at least temporarily. 

The owner of IS Holding was Yum Brands’ master franchisee in Germany for two years, and last month, the brand re-acquired the master franchise rights for KFC and Pizza Hut in Germany from them.

According to Yum Brands, recent sales in Turkish restaurants were significantly lower than the worldwide average sales per restaurant for each brand due to franchisee-specific difficulties and market conditions. The company reported unit counts will be reduced as a result of the Turkey closures by the end of the first quarter of this year.