McDonald's shuts down 169 restaurants in India in battle with franchise partner

ASSOCIATED PRESS
NEW DELHI
Published 22.08.2017 16:33
Updated 22.08.2017 20:05
A stray dog sleeps at the entrance to a partially closed McDonald's outlet in New Delhi, India, Tuesday, Aug. 22, 2017. (AP Photo)
A stray dog sleeps at the entrance to a partially closed McDonald's outlet in New Delhi, India, Tuesday, Aug. 22, 2017. (AP Photo)

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.

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.

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