McDonald’s has said that Connaught Plaza Restaurants Ltd (CPRL) will not be authorised to use its names, trademarks, designs, branding, operational and marketing practice and policies, and food recipes and specifications starting September 6, implying that 169 stores of the burger-and fries brand face closure.
CPRL, the 50:50 joint venture between McDonald’s and Bakshi, operates McDonald’s stores in north and east India.
On August 21, the US burger and fries chain terminated its agreement with CPRL, and asked the latter to stop using all branding and intellectual property of McDonald’s within 15 days.
The closure of stores would have an adverse impact on thousands of lives and businesses. This will cause widespread damage to the lives of over 10,000 Indians (directly and indirectly), the company, the suppliers and all business associates.
McDonald’s had said last month that it was compelled to terminate the agreement because CPRL has “materially breached the terms of the respective franchise agreements relating to the affected restaurants, and has failed to remedy the breaches despite being provided with an opportunity to do so in accordance with the agreements”.