Closure of McDonald’s Outlets in Sri Lanka Follows Termination of Partnership Agreement

McDonald’s has terminated its agreement with its local partner in Sri Lanka, resulting in the closure of all 12 outlets across the country, as confirmed by an attorney representing the U.S. company on Sunday.

“The parent company decided to terminate the agreement with the franchisee due to standard issues,” stated Sanath Wijewardane, the attorney for McDonald’s. “They are not in business in the country. They may decide to return with a new franchisee.”

Closure of McDonald's Outlets in Sri Lanka Follows Termination of Partnership Agreement
Closure follows the termination of the deal, with stores operating for days post-cancellation, the spokesperson declines to comment.

Although the deal was officially canceled on Wednesday, the stores continued to operate for some days thereafter, Wijewardane mentioned.

A spokesperson for the local partner, Abans, chose not to provide any comment on the matter.

While Wijewardane refrained from elaborating on the issues leading to the termination, local media outlets reported that McDonald’s had taken legal action against Abans, citing concerns over poor hygiene standards.

Closure of McDonald's Outlets in Sri Lanka Follows Termination of Partnership Agreement
Local media reports cite hygiene concerns; Abans, McDonald’s partner since 1998, faces legal action, amidst Sri Lanka’s economic recovery.

According to its website, Abans has been in partnership with McDonald’s since 1998.

Sri Lanka, an Indian Ocean island with a population of 22 million, is currently in the process of recovering from a significant financial crisis.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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