McDonalds proposes to shut down 169 outlets across North and East India today. The fast food restaurant chain has terminated the contract with Connaught Plaza Restaurants Ltd (CPRL), which offers 50 percent share to their partner, Vikram Bakshi.
The company also disallowed CPRL to use the brand in future. This indicates that CPRL would not be using McDonald’s system, trademark, design, and intellectual property.
The repercussions would be worse since the decision will affect 1000 workers who have been offering services at McDonalds.
As the termination notice ends yesterday (5 Sept 2017), the chain would soon close bringing in uncertainly to the future of the employees. However, the company assures to offer consideration to alleviate the impact on landlords, suppliers, employees and parties. They would be open to work with CPRL to achieve whatever they have on their mind.
Earlier, McDonald’s Corporation Global Head of Corporate Relations, Ron Christianson spoke that the termination is important since CPRL has been violating certain obligations included in the agreement. This also covers the a default of royalty payment. He further said that the royalty was not paid since two years even when CPRL was given a chance to mend the failure.
According to the comments pertaining to the termination notice, Mr. Bakshi said that the decision is deemed to challenge the National Company Law Tribunal (NCLT) judgment. This had led the CPRL board to meet for discussing on different issues.