McDonald's Terminates Franchise Agreement with Connaught Plaza Restaurant; 169 stores in north and east India to be closed

Story By: Rajesh Sharma
Tuesday, August, 22 2017 - 17:00

American fast food restaurant chain McDonald’s has terminated its agreement with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise agreements. 

"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 on Monday.

This means CPRL, which runs McDonald's operations in north and east India, including Delhi, will not be able to use the chain's logo, branding, trademarks and recipes and will have to shut down 169 stores.

The decision  may lead to more than 10,000 people losing their jobs.

In June this year, 43 outlets run by CPRL were shut down in the national capital, due to CPRL failing to get mandatory health licences.

McDonald’s , which has a presence in around 119 countries, operates a total of around 430 outlets in India through CPRL and Hardcastle Restaurants, the company's franchise in the south and west.

As per media reports, the company is looking for a new partner to replace CPRL.


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