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OrotonGroup Limited (ASX:ORL) has signed an exclusive franchise agreement with the leading global retailer Gap to develop the brand in Australia and New Zealand.
The group will have the first right to develop the Banana Republic brand in the same countries as well as the opportunity to develop Old Navy.
The agreement is for an initial term of ten years with an option to renew for another ten years.
The companies may also elect to enter a 50/50 joint venture for fair market value after five years.
OrotonGroup generated a net profit of $27.4 million in fiscal 2013.
