Wednesday, December 22, 2010

McDonalds makes it into Wikileaks

Summary: In an unexpected twist in McDonald's ten-year legal battle with former franchisee Servipronto, the Second Court of Appeals ruled on December 7, 2005, that the U.S. fast-food giant had illegally terminated its franchising agreement with Servipronto on July 1, 1996, and therefore owed the local firm $24 million in damages for unrealized earnings during what would have been a 20-year extension, to June 30, 2016. One other case involving McDonald's and Servipronto has been resolved in favor of McDonald's, while two others are unresolved. The Salvadoran Courts are inefficient, politicized, and occasionally corrupt. Their inability to effectively enforce commercial law detracts from the country's ability to attract investment. Post will continue to encourage the Government of El Salvador to press for meaningful judicial reform. End summary.

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