New Delhi sources have stated that McDonald's India on Monday announced it had terminated the franchise agreement with Connaught Plaza Restaurants, effectively shutting down all 169 McDonald's outlets in northern and eastern India after a fortnight.
According to sources, the US burger chain said it had ended the franchise with Vikram Bakshi's Connaught Plaza Restaurants Pvt Ltd (CPRL), which vowed to seek legal remedies.
Meanwhile, the outlets run by CPRL will have to stop using the McDonald's brand name in 15 days. Moreover, CPRL is a 50:50 joint venture between McDonald's India and Bakshi. An industry source said there will be no McDonald's outlet in northern and eastern India after 15 days unless the globally popular fast food eatery embraces a new franchise partner.
Moreover, McDonald's said, "We understand this action brings uncertainty for many. Priority will be to mitigate the impact on affected parties such as employees, suppliers, and landlords and they are open to working with CPRL to achieve this."
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