McDonald's Russia franchisees to have option of working under new brand

© Reuters. FILE PHOTO: A sign with the logo is on display outside a McDonald's restaurant in Moscow, Russia May 16, 2022. REUTERS/Evgenia Novozhenina

(Reuters) -McDonald's Corp franchisees in Russia will have the option of working under a new brand that will launch imminently, the TASS news agency quoted Oleg Paroev, McDonald's (NYSE:MCD) Russia's general director, as saying on Friday.

"There will be a new brand and we will offer our current franchisees to join the new system on new commercial terms, to which they can either agree or refuse," Paroev said. "It is in everyone's interests to launch the new brand as soon as possible.

"The brand itself, under which (they) work, will have to change. They won't be able to work under McDonald's," Paroev said. "The rights to the brand are held by the corporation."

The fast-food company is selling its restaurants in Russia to one of its local licensees, who will rebrand them under a new name, ending more than three decades of the "Golden Arches" in the country. McDonald's said it will retain its trademarks.

The McDonald's restaurants in Russia will be sold to Alexander Govor, who runs a franchise operation of 25 restaurants through his firm GiD LLC.

Paroev did not say what might happen to franchisees that did not adopt the new brand, but his comments suggested that the other major McDonald's franchisee in Russia, Rosinter Restaurants, may have to rename its restaurants, cease operations, or come up with an alternative plan.

Rosinter declined to comment.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!