Franklin Covey to Transition China Ops to Local Ownership

Dow Jones11-03

Consulting company Franklin Covey said it agreed to divest its direct operation in China to Shanghai Hanquan Trading Co.

Franklin Covey said it determined local ownership will provide greater flexibility to navigate the market, while continuing to assist organizations and leaders achieve lasting results.

Shanghai Hanquan is led by Yvonne Feng, who has led Franklin Covey's business in China for about 10 years, the company said. Once the deal closes, Shanghai Hanquan will operate as a locally owned licensee partner of Franklin Covey.

The deal is expected to close in the second quarter of fiscal 2027, Franklin Covey added.

Following the closing, Franklin Covey said it expects to receive royalties from the licensee partner under a license agreement.

The deal isn't expected to have a material impact on Franklin Covey's overall profitability, the company added.

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