McDonald's to Close 169 Outlets in India in Franchise Battle

This file photo shows McDonald's Golden Arches. Photo: AP/Gene J. Puskar
This file photo shows McDonald's Golden Arches.

August 22, 2017 08:03 AM

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.

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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.
    
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.

Credits

The Associated Press

(Copyright 2017 by The Associated Press. All Rights Reserved.)

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