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169 outlets of McDonald's in North and East India all set to close down from today
Weeks after the fast food outlet chain McDonald's terminated the franchise agreement with its Indian partner Connaught Plaza Restaurants Ltd (CPRL) over breach of terms, the American restaurant chain has reportedly made it clear that CPRL will not be permitted to use its names, trademarks and branding from Wednesday.

This move will affect around 169 stores across North and East India which face closure from today.

CPRL is a 50:50 joint venture between McDonald’s India and Vikram Bakshiwhichhandles operations in 169 stores in North and East India.

“The termination notice period ends on September 5. Therefore, CPRL is no longer authorised to use the McDonald’s system and its intellectual property. 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. We are proceeding with exercising our legal and contractual rights,” a McDonald’s India spokesperson informed in an e-mail response over ET’s query.

Meanwhile, CPRL Chief Vikram Bakshi on Tuesday filed a plea in National Company Law Tribunal (NCLT) challenging the termination decision taken by McDonald’s. However, his plea was dismissed by NCLT.

Reacting over McDonald’s move, Bakshi reportedly said, “This will cause widespread damage to the lives of over 10,000 Indians (directly and indirectly), the company, the suppliers and all business associates.”

Earlier on August 21, McDonald’s India had terminated its pact with CRPL and asked the latter to discontinue using all branding and intellectual property of McDonald’s within 15 days.

The loggerheads between McDonald’s and CPRL started with Vikram Bakshi’s dismissal from the post of Managing Director of CPRL in 2013. McDonald’s alleged that Bakshi had leased out his property to a rival company, suggesting a conflict-of-interest scenario.

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