McDonald’s is shutting down 169 stores in India, which may lead to more than 10,000 people losing their jobs. The US burger chain, which has a presence in around 119 countries, said that it was terminating its agreement with Connaught Plaza Restaurant (CPRL) due to the alleged breach of franchise agreements. CPRL is a 23-year-old 50:50 joint venture (JV) between Vikram Bakshi and McDonald’s India.
The CPRL, which runs McDonald’s operations in the north and east India, including Delhi, will not be able to use the chain’s logo, branding, trademarks and recipes within 15 days of receiving the termination notice.
McDonald’s has been engaged in a protracted legal battle with Bakshi since 2013 when he was ousted as the CPRL’s MD over alleged misuse of funds.
However, Bakshi was reinstated as CPRL’s MD by the National Company Law Tribunal (NCLT) in July. In June, around 43 McDonald’s stores were closed+ down due to CPRL failing to get mandatory health licences for the outlets.
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