McDonald's Shutters 170 India Locations
McDonald's India will close nearly 170 locations across the country's north and east regions after it terminated franchise agreement with partner Connaught Plaza restaurants Limited.
McDonald's alleges that its partner Connaught Plaza Restaurants violated the terms of the franchise agreement, including failure to pay royalties.
McDonald's has asked its Indian partner to "cease using the McDonald's name, trademarks, designs, branding, operational and marketing practice and policies" within 15 days of the termination notice.
"The situation lasted almost two years during which McDonald's India has provided CPRL with an opportunity to remedy the breaches but [it] failed to do so," McDonald's Asia spokesman Barry Sum said in a statement.
Connaught Plaza Restaurants said Tuesday it is considering legal action against the burger giant. In June, it shut 43 McDonald's outlets in the capital, New Delhi, after it failed to renew their licenses.
McDonald's currently has 400 restaurants across 65 Indian cities, with the outlets in the south and west run by a different licensee. (dpa)
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