Indonesian Franchisee Sues Mcdonald’s Over Sale Of Outlets

Financial Times:

A McDonald’s franchisee in Indonesia is suing the US fast food chain for $105.5m for allegedly selling 97 outlets and their operations there in violation of the law and their agreements.

Lawyers representing Bambang Rachmadi, who has been a franchisee since 1991, said he was seeking $5.5m in material losses and $100m in immaterial losses after the assets were sold for $20m to Rekso Nasional Food, a subsidiary of the Sosro Group, which makes Indonesia’s most popular soft drink, a bottled tea.

The outlets were owned by Bina Nusa Rama, of which Mr Rachmadi owned 10 per cent through another company, Rejeki Murni. International Development Services, affiliated to McDonald’s, owned the rest.

McDonald’s, which de-clines to confirm any details of the deal with Rekso Nasional Food, denies the allegations and says Mr Rachmadi was kept fully informed of the deal, concluded on June 3.

Rekso Nasional Food said as far as it was aware the transaction was legal. More.

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