New Delhi: September 6, 2017 is the day 169 stores across North and East India are supposed to shut because of a corporate dispute at McDonald’s India. Shut doesn’t mean that the stores have to literally down shutters, but they have to stop using the McDonald’s brand name, including the famous golden arches logo and the Ronald McDonald clown.
McDonald’s stores are ubiquitous in urban centres, especially Metropolitans. To understand why you may cease to see these stores in Delhi, Jaipur and Kolkata, let’s step back to understand the business model and origins of dispute.
Not all stores in India are directly owned by the American fast food giant. A lot of stores are operated on a franchise model: A local partner operates the stores tailored to the specifications that McDonald’s lays down and uses the company’s logos, branding in return for a royalty payment.
McDonald’s stores are ubiquitous in urban centres, especially Metropolitans. To understand why you may cease to see these stores in Delhi, Jaipur and Kolkata, let’s step back to understand the business model and origins of dispute.
Not all stores in India are directly owned by the American fast food giant. A lot of stores are operated on a franchise model: A local partner operates the stores tailored to the specifications that McDonald’s lays down and uses the company’s logos, branding in return for a royalty payment.
