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All McDonald's restaurants in Sri Lanka were closed on Sunday. According to news agency AFP, which cited court officials, the fast-food chain initiated legal proceedings against the local franchise holder over claims of inadequate hygiene.
According to the information, the stores will be closed till April 4, the Commercial High Court of Colombo ordered after the parent company accused local franchise holder of failing to meet international hygiene standards.
Key points so far about the closure of McDonald's stores in Sri Lanka:
Reason for Closure: The closures stem from a legal battle between McDonald's and its Sri Lankan franchise holder, Abans, over allegations of poor hygiene standards. McDonald's claims Abans failed to meet their international hygiene requirements.
Court Order: Sri Lanka's Commercial High Court in Colombo ordered the closure of all McDonald's outlets until April 4, 2024, while the investigation unfolds.
Franchise Termination: McDonald's reportedly terminated the franchise agreement with Abans last week. The company has franchise with 12 outlets since the US firm's entry into Sri Lanka in 1998.
Reopening Status: There's no official word on when or if the McDonald's stores will reopen in Sri Lanka.
Number of Stores Closed: All 12 McDonald's outlets in Sri Lanka are shut down.
Meanwhile, the sources also claim that McDonald’s may return with new franchisee in Sri Lanka after company ended an agreement with the local partner. However, the official statement on this is still awaited.