McDonalds in FYR Macedonia closed indefinitely

MINA finds that the reasons for the closure of all McDonalds restaurants in FYR Macedonia was dispute in contract and contractual obligations between the franchise owner Sveto Janevski and McDonalds' corporate European office.

Sveto Janevski also owns the McDonalds franchises in Bulgaria, however there's not been any problems there. FYR Macedonia's McDonalds closure has nothing to do with economic reasons as was the case in Iceland or failing health regulations, it was a simple dispute between the company and its franchise owner.

McDonalds is well known for having very strict franchising agreements with local owners. The first McDonalds in the country opened its doors in Skopje 16 years ago. A franchise owner start up cost can range anywhere from 1 to 3 million euros. It is not known whether corporate McDonalds is negotiating a contract with another local businessman.

Source: MINA