Shanghai Hanquan, helmed by Yvonne Feng, will take the reins after a decade of her managing the brand's footprint in China. Once the transaction concludes in the second quarter of fiscal 2027, the firm will continue to deliver Franklin Covey’s consulting services as a locally owned licensee. The parent company plans to pivot to a royalty-based revenue stream under a new licensing agreement.

Management anticipates the divestiture will have no material impact on the company's overall profitability. By empowering local leadership, the organization seeks to maintain its influence in helping regional leaders achieve long-term results while insulating itself from the complexities of direct market navigation in a shifting regulatory landscape.