British café chain Pret A Manger has agreed to pay £3 million ($4 million million) to Israel's Fox Group as compensation for withdrawing from a franchise agreement to operate in Israel.
According to a Fox Group report, the compensation was part of a settlement to avoid legal action against the British company.
The compensation will be transferred to Fox's subsidiary responsible for its food business, which also includes the franchise for New York-based burger chain Shake Shack. As part of the agreement, any future entry by Pret A Manger into Israel within the next 36 months would require Fox’s involvement.
The decision to withdraw from the Israeli market came after Pret A Manger faced significant pressure and protests over its planned expansion into Israel, a move seen as the primary reason for terminating the agreement. The chain, which operates in 10 countries, officially pulled out in June from the franchise deal it had signed with Fox in 2022.
Under the original agreement, Fox had committed to investing $36 million and opening 40 branches across Israel, starting with a flagship location at the Tel Aviv Port.
Pret A Manger is well known to many Israelis due to its popularity in London, where it has multiple branches. Fox Group owner Harel Wiesel, a firm believer in the potential of fast-casual branded food, had pursued the franchise as part of a strategy to diversify beyond fashion.
The plan had been to establish Pret A Manger outlets in shopping malls, office buildings and large institutions across Israel.
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