McDonald’s Russian franchisees have option to work under new brand: TASS

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

(Reuters) – McDonald’s franchisees in Russia will have the option to choose from under an upcoming new brand, Oleg Paroyev, general manager of McDonald’s (NYSE: ) Russia, was quoted by the TASS news agency on Friday. Work.

“There will be a new brand and we will have our existing franchisees join the new system with new commercial terms, which they can agree to or refuse,” Parov said. “It’s in everyone’s interest to launch a new brand as soon as possible.

“The brands (they) work for themselves will have to change. They won’t be able to work under McDonald’s,” Paroyev said. “The rights to the brand belong to the company.”

The fast-food company is selling its restaurants in Russia to a local licensee, who will rebrand them under a new name, ending more than 30 years of the country’s “Golden Arches.” McDonald’s said it would retain its trademark.

McDonald’s restaurants in Russia will be sold to Alexander Govor, who operates a 25-restaurant franchise through his company GiD LLC.

Paroev didn’t say what would happen to franchisees that didn’t adopt the new brand, but his comments suggested that Rosinter, another major McDonald’s franchisee in Russia, may have to rename its restaurants, cease operations or come up with alternative plans.

Rosent declined to comment.

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