Mcdonald's is a well-known food chain, and it has maintained its popularity in India as well. This 77-year-old Company is famous for its hamburgers, fries, shakes, and wraps. In India, it is one the most budget friendly fast food outlets. Among its worldwide outlets, McDonald's has made extra efforts to change their menu according to the taste and religious beliefs of the country. They don't sell beef in their Indian branches and also have made their burgers 'extra-spicy' based on the food habits of the Indians.

In spite of making such wise changes for their customers, this giant food chain is now stuck in a dispute with its corporate partners, and the results are ugly.

What's the matter?

McDonald's India had a 50:50 partnership with CPRL (Connaught Plaza Restaurants Private Limited) in North East India. This partnership remained peaceful for 23 years, but in the last few years, the relationship got strained. It all started when the CPRL's MD Mr. Vijay Bakshi was ousted from his position. McDonald's India private limited is now accusing him of taking more interest in his other 25 companies than CPRL and thus have lost trust in him.

Why the Trust Issues with the partner?

The real estate business of Bakshi is the culprit behind it. According to the McDonald's authorities, Bakshi had pledged his 51,300 shares to get the loan for his real estate business, without any consent from them.

He had also transferred a sum of $10,769 from CPRL to his another company's account. Also, CPRL failed to open new stores in the zones as promised and also failed to get the much-needed profits to this food chain. All these actions of the MD raised the doubt, and McDonald's made their decision without wasting much time.

Agreement Termination

As a result, the agreement between CPRL and McDonald's has been terminated by the company this August. NCLAT (National Company Law Appellate Tribunal) also denied the pleas of the MD seeking a stay on this license termination by McDonald's India.

The Results of the Dispute

The CPRL company is not authorized to use the McDonald's name, brand, recipes or specifications anymore.

This led to the shutdown of the 169 stores in north-east India run by CPRL on September 6. As per Bakshi, about 10,000 employees will be affected by this closure.

What would the McDonald's lovers in the north east India do? Either wait for another launch or switch to Burger King maybe?

Now the Burger King must be 'Loving it.'