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Wednesday, November 6, 2024
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McDonald closed in Sri Lanka following legal dispute with its local franchisee

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Legal Dispute Leads to Temporary Closure of n Sri lanka McDonald’s branches closed on Sunday amid a legal disagreement with its local franchise operator, Abans.

The closure, mandated by the Commercial High Court of Colombo until April 4, follows allegations of inadequate hygiene standards, prompting the parent company to terminate its contract with Abans.

McDonald’s representatives highlighted concerns over hygiene norms not meeting international standards. Abans, operating 12 outlets since McDonald’s establishment in Sri Lanka in 1998, has yet to respond.

McDonald closed in Sri Lanka following legal dispute with its local franchisee

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

Despite no clear indication of reopening, recent technical issues in East Asia did not affect Sri Lanka’s McDonald’s stores.

This situation emphasizes the importance of upholding global standards, particularly in food safety. Further developments are expected as legal proceedings continue into early April.

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