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With ongoing row fate of McDonald's Indian outlets hangs in uncertainty; all you need to know

McDonald's estranged partner Vikram Bakshi has claimed that 126 outlets in north and east India would continue to operate fully.

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With ongoing row fate of McDonald's Indian outlets hangs in uncertainty; all you need to know
Places where McDonalds still has its working outlets, it continues to dominate the market.
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McDonald's had shut down all of its 169 outlets in north and east India, as its agreement with Connaught Plaza Restaurant Limited (CPRL) officially ended last week. 

However, McDonald's estranged partner Vikram Bakshi has claimed that 126 outlets in north and east India would continue to operate fully even as the US-based fast food chain said it was taking action to enforce cancellation of its franchise licence.

But with an ongoing tussle between the two, the question popping in every customer's mind is will now there be no more McDonald's delicious meal available to them?  

What is the controversy? 
The tussle between McDonald's and Vikram Bakshi started in 2013, when he was ousted as the MD of CPRL over alleged management lapses, post which he approached National Company Law Tribunal (NCLT).

In July this year, the tribunal restored him to his position, which was challenged by McDonald's in NCLAT where the appeal is pending.
Simultaneously, Bakshi challenged the termination of franchise licence by McDonald's at the National Company Law Appellate Tribunal (NCLAT), which was refused any interim relief. Both the appeals filed by the parties are listed for hearing on September 21.

Why 169 outlets were closed down? 
There has been uncertainty over the fate of McDonald's outlets operated by CPRL after McDonald's India sent a termination of notice to CPRL last month.
McDonald's India had given time till September 5 to CPRL to operate, post which it said the franchise was barred from using McDonald's brand, trademark, and its associated intellectual property, among others.

It implied that the CPRL can no longer use McDonald's name, system, trademark, design, and associated intellectual property, among other things.
On September 6, McDonald's contract with CPRL had officially came to an end. 
Talking to news agency, PTI, a McDonald's India spokesperson said: "We will take action to enforce it (termination). However, we won't be able to discuss specific plans or courses of action."

Meanwhile, Vikram Bakshi has claimed that at least, 126 outlets in north and east India continue to operate . 

He said that outlets of the chain in places such as Gurugram, Kolkata, Durgapur and Lucknow operated by Connaught Plaza Restaurant Ltd (CPRL)-- the equal joint venture between Bakshi and McDonald's -- are operating in full swing.

"Apart from the 43 outlets that are shut for sometime, the remaining are open and operating," Bakshi said.
At present, CPRL runs a total of 169 outlets in north and east India, out of which 43 were shut down in June after expiry of eating house license.

What will happen now? 
The next option for the US-based food chain to enforce termination is to approach the high court if NCLT would not announce its decision in the food giant favour. 
The matter has been pending for next hearing on September 21.

Experts say that at the places where McDonalds still has its working outlets, it continues to dominate the market which could give hopes to the US based restaurent that it might regain its business after reaching to an agreement with either Bakshi or after finding a new franchisee for itself. 

The food giant has another franchise agreement with Hardcastle Restaurants Pvt Ltd, which operates 261 McDonald's outlets in western and southern India.

(with inputs from PTI)

 

 

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