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.”
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.
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.
