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Case Code: MKTG407
Case Length: 8 Pages 
Period: 2008-2020   
Pub Date: 2020
Teaching Note:Available
Price:Rs.250
Organization : McDonald’s India
Industry :Fast Food
Countries : -
Themes: International Marketing/Operational Strategy/Joint Venture/Conflict Management/Brand Management
Case Studies  
Business Strategy
Marketing
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Human Resource Management
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Leadership & Entrepreneurship

McDonald`s Franchise in Trouble in India

 
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INTRODUCTION

In December 2018, McDonald’s India announced that it had posted its first-ever profit after 22 years of business in the country. This was despite the global fast food giant being embroiled in a long-drawn legal dispute with one of its main local franchisees – Connaught Plaza Restaurants (CPRL).

On August 21, 2017, McDonald’s had announced that it had terminated the franchise agreement with CPRL for 169 restaurants operating across northern and eastern India. According to McDonald’s, CPRL had violated the terms of the franchise agreement through alleged financial irregularities, mismanagement, and inadequacies with respect to internal control systems. However, Vikram Bakshi (Bakshi), Managing Director of CPRL, challenged the termination of the agreement in the Delhi High Court and said that he would continue to run the outlets until a verdict was passed by the court or an acceptable offer was made by McDonald’s to buy out his stake in CPRL. ..

 

 
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