US-fast food chain McDonald’s has cancelled the licence of Gliese 581g, its franchise in Bosnia and Herzegovina, following a series of scandals, bne IntelliNews reported.

However, the reasons for revoking the license of the franchise were not officially revealed by the American restaurant company.

As a result of the decision, all McDonald’s restaurants in the country were shut at the beginning of the month.

An employee of the former franchisee told local media that unpaid rent to the Raiffeisen Bank, as well as the franchisee’s involvement in a political campaign, led to the revoking of the licence.

Sarajevo Canton Governor Edin Forto confirmed the cancellation of the licence.

The governor wrote on Twitter: “The announced exit of McDonald’s from Bosnia is bad news for our economy.”

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By GlobalData

Last December, the owner of Gliese 581g, Haris Ihtijarevic, reportedly lost a case against Raiffeisen Bank’s Bosnian arm that involved unpaid rent.

As a result of this, the Gliese 581g owner was directed by the court to return one space where a McDonald’s restaurant was located to the Raiffeisen Bank.

The first McDonald’s restaurant in Bosnia and Herzegovina was opened in 2011, and another five restaurants were added by the end of 2020.

Last month, McDonald’s announced the re-opening of its restaurant in Bucha, Ukraine, which was damaged due to the Russian invasion.

First opened on 23 December 2020, the restaurant location was damaged last March, but has reopened after a hiatus, Interfax-Ukraine reported.