Recent court filings have exposed Abans for operating several McDonald's outlets across Sri Lanka without valid franchise agreements. The outlets located at One Galle Face, Mount Lavinia, Colombo City Centre, Macleod Road, and Shangri-La were found to be operating without the necessary legal agreements, rendering their operations illegal. Furthermore, three other outlets in Colpity, Rajagiriya, and Welisara were discovered to be operating with expired contracts.
The termination of these franchise agreements has not only raised corporate concerns but also impacted around 300 employees who relied on these outlets for their livelihoods. With the closure of these establishments, their futures are now uncertain.
McDonald's, the global fast-food giant, recently made headlines by terminating its partnership with Abans, resulting in the closure of all 12 outlets across the country. Sanath Wijewardane, an attorney representing McDonald's, attributed the decision to typical operational concerns. While the termination was official on Wednesday, the stores continued to operate for a few more days. However, Wijewardane refrained from elaborating on the specific issues that prompted the move. Local media outlets have suggested that McDonald's initiated legal action against Abans, citing concerns over hygiene standards.