US-based firm claims Turkish operator failed to meet standards but operator denies this
Yum! Brands, the owner of international fast food chains KFC and Pizza Hut, announced Wednesday that it terminated franchise agreements with Turkish operator IS Gida.
The decision was made due to the alleged "failure by IS Gida to meet Yum! Brands' standards," according to a press release.
Chris Turner, Yum! Brands' chief financial and franchising officer, said that "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."
The statement said the termination will affect 283 KFC and 254 Pizza Hut restaurants in Türkiye and the restaurants are expected to close "at least temporarily."
The firm also said it is working to reopen as many of the restaurants as possible.
IS Gida said that contrary to the allegations, its operations meet quality standards and continue to operate uninterruptedly.
The firm, which owns and operates KFC and Pizza Hut restaurants in Türkiye, said it increased the total number of restaurants to 537 with 300% growth in the first three years by incorporating the KFC brand in 2020 and Pizza Hut brand in 2022.
Providing employment for approximately 7,000 people as of 2025, IS Gida was deemed worthy of a growth award by Yum! Brands in 2023 thanks to this performance, IS Gida said.
“The compliance of all our KFC and Pizza Hut restaurants with global operational standards is regularly audited by Yum! Brands-approved independent auditing organizations, and since our operation meets these quality standards, it continues its activities uninterruptedly," it noted.
It added that the process regarding the unilateral termination decision, which was allegedly taken by Yum! Brands as a result of a hasty evaluation with financial concerns, is ongoing.
