Published: Thu, September 07, 2017
Medicine | By Earnest Bishop

McDonald's verdict to clarify fate of 169 outlets and 10000 jobs

McDonald's verdict to clarify fate of 169 outlets and 10000 jobs

Commenting on the termination notice, Bakshi said the decision was an open challenge to the National Company Law Tribunal (NCLT) judgment, which had directed the CPRL board to meet and discuss various issues.

CPRL, the 50:50 joint venture between McDonald's and Bakshi, operates McDonald's stores in north and east India.

"With the National Company Law Appellate Tribunal denying interim relief to Bakshi on his plea seeking a stay on termination of franchisee agreement with McDonald's for the 169 stores, including the one in our mall, CPRL does not have the licence to operate the restaurants under the McDonald's brand".

Bakshi said the closure would affect at least 10,000 people directly or indirectly associated with the outlets, including employees and suppliers. As per the termination notice served by the US-based fast food company, these restaurants can not use McDonald's brand name, trademark, design, operating and marketing practices and policies, food recipes and specifications after September 5.

"The termination notice period ends on 5 September". "It means they need to stop using the McDonald's names, trademarks, designs, branding, operational and marketing practice and policies, and food recipes and specifications".

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The cancellation led to a temporary shutdown of all 169 McDonald's outlets in North and East India.

The matter pertains to a long-drawn dispute between Vikram Bakshi and McDonald's India, following the former's ouster from the post of managing director of the joint venture company. "We are proceeding with exercising our legal and contractual rights".

Meanwhile, names of prospective replacements for Bakshi as McDonald's future partner have already begun doing the rounds, in case things do not go in his favour.

On June 29, the CPRL had temporarily suspended operations of more than 40 of its restaurants in Delhi after the "Eating House Licences" of a number of outlets expired.

A McDonald's official was quoted as saying that CPRL defaulted on royalty pay-outs for two years, and the American chain offered it adequate time to remedy.

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