McDonald's to close 169 outlets in India in franchise battle

A stray dog sleeps at the entrance to a partially closed McDonald's outlet in New Delhi, India, Tuesday, Aug. 22, 2017. McDonald's India has announced it will close nearly 170 McDonald's outlets in northern and eastern India after the American fast food giant decided to terminate a franchise agreement with its Indian partner. (AP Photo/Altaf Qadri)

McDonald's India has announced it will close nearly 170 McDonald's outlets in northern and eastern India after the American fast food giant decided to terminate a franchise agreement with its Indian partner

NEW DELHI — McDonald's India has announced it will close nearly 170 McDonald's outlets in northern and eastern India after the American fast food giant decided to terminate a franchise agreement with its Indian partner.

McDonald's said its partner Connaught Plaza Restaurants violated the terms of the franchise agreement, including reneging on payment of royalties.

Connaught Plaza Restaurants, which runs 169 McDonald's outlets in northern and eastern India, said Tuesday it is considering legal action in the long-drawn legal battle. In June, it shut 43 McDonald's outlets in the capital, New Delhi, after it failed to renew their licenses.

McDonald's said its Indian partner would have to "cease using the McDonald's name, trademarks, designs, branding, operational and marketing practice and policies" within 15 days of the termination notice.

The decision to close nearly a third of the 430 McDonald's outlets in India creates a challenge for the company, disrupting operations in the world's second most populous country.

Vikram Bakshi, the managing director of Connaught Plaza Restaurants, described the McDonald's decision as "mindless and ill-advised."

"Appropriate legal remedies that are available under law are being explored," Bakshi said in a statement.

McDonald's said it is looking for a new partner to work with in north India. McDonald's franchises in southern and western India are run by a separate company.

Other News

Troubled year in power for Coe confronting critics, Russia

Aug 10, 2016

Entrusted with cleaning up a sport mired in sleaze and doping deceptions has proved far trickier for Sebastian Coe than the pursuit of gold on the track

Coe not sure if fans will pack stadium for Olympic track

Aug 10, 2016

Even away from doping, there's little good news for track and field right now

Rugby couple put respect in front and center in Olympics

Aug 10, 2016

Isadora Cerullo has become a celebrity around Rio, more for what happened on the sidelines of the Olympic rugby stadium than for her performances on the pitch

ChillHype brings to you the latest trends, viral, and entertainment news. We create a happy community and keep every Malaysian connected. Let’s chill and catch up with the hype together!

Contact us: sales@chillhype.com