McDonald’s in India will close 169 restaurants across the country’s north and east following a breach in franchise agreement with a partner. McDonald’s alleges that Connaught Plaza Restaurants Limited (CPRL) violated contract terms — at least in part by refusing to pay royalties — according to CNNMoney.
Separately, 41 of CPRL’s locations in the nation’s capital, New Delhi, were closed in June after failing to renew operating licenses. CPRL managing director Vikram Bakshi told CNNMoney that the new move will put 6,500 employees out of a job.
“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.
CPRL described McDonald’s decision as “mindless” and “ill-advised,” and is considering taking the American fast-food chain to court, reports the Chicago Tribune. McDonald’s is currently searching for a new partner in northern India to keep the stores running; meanwhile, franchises in southern and western India run by a separate licensee remain unaffected. Did you know that McDonald’s sells these breakfast items around the world?