Russia’s McDonald’s Corporation franchisees will have the option to work under a new brand that will be launched soon, the Tass news agency quoted McDonald’s Russia’s general director Oleg Parvev as saying on Friday.
“There will be a new brand and we will offer our existing franchisees to join the new system on new commercial terms, with which they can either agree or reject,” Parvev said. “It is in everyone’s interest to launch a new brand as soon as possible.
“The brand itself, under which (they) operate, needs to change. They will not be able to operate under McDonald’s, “said Parvez. “The rights to the brand are in the hands of the corporation.”
The fast-food company is selling Russian restaurants to one of its local licensees, who will rebrand them under a new name, ending more than three decades of “golden arches” in the country. McDonald’s says it will retain its trademark.
McDonald’s restaurants in Russia will be sold to Alexander Gover, who runs a franchise of 25 restaurants through his firm GiD LLC.
Parvev did not say what could happen to franchisees who have not adopted the new brand, but suggested that Russia’s other major McDonald’s franchise, Rosinter Restaurant, should change its name, close its operations or come up with alternative plans. .
Rosinter declined to comment. (Reuters report edited by Mark Potter)