McDonald’s 169 outlets in the north and east India face closure from today. As per the reports, the termination notice period of McDonald’s was ended on 5th September. Over ten thousands of staff directly and indirectly employed at these outlets. As per the reports, Mc Donald has said that Connaught Plaza Restaurants Ltd (CPRL) will not be authorized to use its brand name and trademark now. In India, Mc Donalds operates through the two franchise and now the company had terminated its agreement with Connaught Plaza Restaurants Ltd in the 50-50 joint venture between Mc Donald’s India and its estranged partner Vikram Bakshi who holds 50 percent stake. Yesterday the termination notice period was ended.
Last month the McDonald’s India has canceled the license agreement with CPRL after which the franchise was not authorized to use the company’s system and intellectual property. Ron Christianson McDonald’s Corporation Global Head of Corporate Relations and the Foundational Markets had explained that the decision of the termination has essentially emerged because of CPRL’s violation of the certain obligations as part of the agreement including a default of payment of royalty to MIPL.
Mc Donald’s is one of the popular fast food chains that is known for graduating people with the range of burgers. Over past few years, Mc Donald’s fate was declining since a fight with Bakshi for the management of CPRL after he was expelled from the managing director post of the joint venture company in 2013. This US-based giant fast food chain has another franchise agreement with Hardcastle Restaurants Pvt Ltd that operates around 261 outlets of the MC Donald’s in the western and the Southern India.