November 2017. India has had to forfeit 170 outlets of the McDonald’s fast food restaurant. At the beginning of September, the US firm announced it had ended its franchise agreement with Connaught Plaza Restaurants Ltd (CPRL). This means that CPRL, which operates a large number of McDonald’s outlets in northern India, no longer has access to McDonald’s trademark, recipes or marketing.
Infringement of agreement
There have been rumblings between McDonald’s and CPRL, a 50-50 joint venture between the hamburger giant and Indian firm Bakshi, for the last couple of years. McDonald’s claims CPRL has been infringing the agreement between the two parties for some time. Fortunately, the measure only affects the north of India. Consumers in the south and west, where McDonald’s has contracts with other players, can still enjoy their Mac and fries.