McDonald's stores across Sri Lanka were shut on Sunday. This comes as the fast-food giant launched a legal battle with its local franchise holder over allegations of poor hygiene, news agency AFP reported quoting court officials. The stores will be closed till April 14, the Commercial High Court of Colombo ordered after the parent company accused local franchise holder of failing to meet international hygiene standards.
Read more: Zomato CEO Deepinder Goyal marries Mexican model Grecia Munoz
"The closure was ordered pending an investigation," a court official said as per AFP adding that lawyers for McDonald's told the court that they had terminated a franchise agreement with local company Abans. The hearing is to resume in early April.
Read more: Nvidia CEO Jensen Huang believes there is ‘low probability of success’ if company is started because of this reason
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."
Read more: Zomato to open restaurants? CEO Deepinder Goyal's response
Abans has held the McDonald's franchise in Sri Lanka with 12 outlets since the US firm's entry into the country in 1998. Outside McDonald's outlets across the country, notices were seen saying they were "closed" and there was no indication if or when they may reopen.
Read more: Nvidia is ‘printing money’: Now more valuable than Mark Zuckerberg's Meta
{{/usCountry}}Abans has held the McDonald's franchise in Sri Lanka with 12 outlets since the US firm's entry into the country in 1998. Outside McDonald's outlets across the country, notices were seen saying they were "closed" and there was no indication if or when they may reopen.
Read more: Nvidia is ‘printing money’: Now more valuable than Mark Zuckerberg's Meta
{{/usCountry}}Stores in Sti Lanka were unaffected when a technology hitch disrupted ordering at stores across much of east Asia last week.