McDonald's stores shut in Sri Lanka folowing Colombo HC prevents Abans using McDonald's brand name
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Mar 24, 2024 10:38
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McDonald's stores across Sri Lanka shut Sunday after the US fast-food giant launched a legal battle with its local franchise holder over allegations of poor hygiene, court officials said.
The Colombo Commercial High Court issued an enjoining order preventing Rusi Pestonjee, Managing Director of Abans PLC or his servants from in any way or manner to use the name McDonald’s or any name in any way or manner similar to the name McDonald’s.
The Commercial High Court of Colombo ordered the closures until April 4, after the parent company accused the local franchise holder of failing to meet international hygiene standards.
"The closure was ordered pending an investigation," a court official said.
He said lawyers for McDonald's told the court that they had terminated a franchise agreement with local company Abans last week. The hearing is to resume in early April.
There was no immediate comment either from McDonald's or Abans, who has held the franchise with 12 outlets since the US firm's entry into Sri Lanka in 1998.
Notices were seen outside McDonald's outlets on Sunday saying they were "closed" and there was no indication if or when they may reopen.
When a technology hitch disrupted ordering at stores across much of east Asia last week, Sri Lanka's McDonald's stores were unaffected.
