The arbitration clause is present in almost 95 per cent of corporate agreements, according to tax and audit firm Ernst & Young.
McDonald's problems couldn't have surfaced at a worse time. Cut-throat competition, rapid expansion and a slowdown in consumer spending in the wake of demonetisation have seriously dented the overall quick-service restaurant business.
The war of words that has broken out between Vikram Bakshi and McDonald's Corporation is the latest in the long list of ugly spats between Indian businessmen and their overseas collaborators.