McDonald's is set to close 169 outlets in India after the fast-food juggernaut decided to part ways with one of its franchise partners.
McDonald's claims Connaught Plaza Restaurants Pvt Ltd (CPRL), which ran operations in northern and eastern India, breached the franchise agreement.
McDonald's has a separate franchise agreement with a partner for its southern and western India locations and is now now searching for potential partners to get the outlets back up and running in northern India, USA Today reported.
The fallout between McDonald's and CPRL started in 2013 when McDonald's said itts term with Vikram Bakshi, managing director of CPRL, had come to an end. Bakshi challenged the claim in court.
"They fell out because McDonald’s thought that Mr. Bakshi was involved in irregular siphoning activities, so they wanted him to go," said A.S. Chandiok, Bakshi's lawyer, at the time, Reuters reported.
CPRL said Tuesday it plans on taking legal action against McDonald's in the aftermath of the broken partnership, USA Today noted.