McDonald’s terminates franchise agreement for 169 outlets in India

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McDonald’s, the U.S. fast food chain, terminated its franchise agreement on Monday for 169 outlets in India.

The termination will see closure of the company’s restaurants in north and east India.
The Indian unit of McDonald’s said on Monday that it has ended the pact with Connaught Plaza Restaurants Private Limited (CPRL), after it breached terms relating to some restaurants.

“Today, we have issued the CPRL board a notice of termination of the franchise agreement between McDonald’s India Pvt Ltd and CPRL for 169 McDonald’s restaurants operated by CPRL in north and east India,” the fast food chain said in a statement.

CPRL, led by Vikram Bakshi, was running MacDonald’s outlets in north and east India.
The estranged partner said it will consider “legal remedies” against the burger chain’s decision to terminate franchise agreement.

In June, 43 outlets in New Delhi capital were shut due to non-renewal of eating house licences by local authorities.

With termination of agreement, the local partner ceases the right to using McDonalds’s name, trademark, and designs.

The move is likely to put hundreds of workers at these restaurants out of jobs.

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