McDonald's Breaks Off Agreement With India Franchisee After Dispute
- Chain terminates pact with franchisee covering 169 restaurants
- India partner says it’s considering legal action in response
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McDonald’s Corp.’s battle with one of its two India franchisees escalated after the fast food giant moved to terminate an agreement involving more than a third of its restaurants there.
The Indian unit of McDonald’s said on Monday it ended a pact with Connaught Plaza Restaurants Pvt, a joint venture that operates 169 outlets in the northern and eastern regions of the world’s second-most populous nation. McDonald’s said its partner violated “certain essential obligations” of the agreement, including the payment of royalties.