More than 10,000 people are at a risk of losing their jobs, as McDonald’s is shutting down 169 outlets in India. According to the US burger giant’s statement on Monday, they are terminating their contract with Connaught Plaza Restaurant (CPRL) because of a breach of franchise agreements.

The venture between Vikram Bakshi and McDonald's India is a 50:50 contract for the last 23 years, however, the contract termination forbids CPRL to run any McDonald’s operations in the north and east India, which also includes the outlets in Delhi. They will not be allowed to use the logo, branding, trademarks, or even the recipes within 15 days of the notice of termination.

There are 430 outlets in India that were operated by McDonald’s via CPRL and Hardcastle Restaurants. Now they are on a lookout for new partners to replace CPRL. McDonald’s have been involved in a legal case with Bakshi since 2013 when he was removed from the position of MD for CPRL for misuse of funds. But he was soon reinstated by the National Company Law Tribunal (NCLT).

About 43 McDonald’s stores were shut down due to CPRL’s failure to get health licenses for the outlets. That was the final straw and McDonald’s was quick to act on it.

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