McDonald’s stores across Sri Lanka were closed on Sunday following a legal dispute with its local franchise holder regarding alleged hygiene issues, according to AFP quoting court officials. The Commercial High Court of Colombo ordered the closure until April 14 after the parent company accused the local franchise holder of failing to adhere to international hygiene standards.
Sanath Wijewardane, an attorney for McDonald’s, stated that the parent company terminated the agreement with the franchisee due to standard issues, leading to the cessation of business operations in the country. He mentioned the possibility of returning with a new franchisee in the future.
The deal was terminated on Wednesday, but the stores continued to operate for a few days thereafter. Abans, the local partner holding the McDonald’s franchise with 12 outlets since 1998, declined to comment on the matter.
Notices posted outside McDonald’s outlets across the country indicated closure, with no clarity on when or if they might reopen. McDonald’s is considering resuming operations in Sri Lanka with a new local franchise partner, although the timeline for this remains uncertain.
Earlier this month, McDonald’s announced a leadership change, appointing CEO Chris Kempczinski as chairman of the board following the retirement of Enrique Hernandez, who served as non-executive chairman since 2016.
