Brazilian franchisees sue McDonald’s
One-third of McDonald’s Brazilian franchisees are suing the parent company, according to reports in the US. The franchisees are alleging that the hamburger giant has been overcharging for rent and saturating the market with too many stores.
McDonald’s restaurants were Brazil’s biggest employer in the late 1990s and was hailed for its technology and product innovations. However, most recently the company has been suffering due to the struggling Brazilian economy. In response, McDonald’s said the laws regulating Brazilian rent does not apply to commercial properties and that it only opens stores after commissioning detailed studies.
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