CPRL is led by Vikram Bakshi, the estranged partner of the US-based food chain giant.
The decision comes weeks after 43 outlets run by CPRL in the national capital were shut due to non-renewal of eating house licences by local authorities.
CPRL was a 50:50 joint venture between Bakshi and McDonald's India.
As part of the termination, CPRL has ceased using McDonalds's name, system, trademark, designs and its associated intellectual property, among others within 15 days of the termination notice.
"Today, we have issued the CPRL board a notice of termination of the franchise agreement between McDonald's India Pvt Ltd and CPRL for 169 McDonald's restaurants operated by CPRL in north and east India," the fast food chain said in a statement.
The termination of agreement includes all restaurants impacted by the recent failure to renew the eating house licences, the company said.
"We have been compelled to take this step because CPRL has materially breached the terms of the respective franchise agreement relating to affected restaurants and has failed to remedy the breaches, despite being provided with an
opportunity to do so in accordance with the agreements," McDonald's India said.
McDonald's India further said that it is "committed to finding the right 'developmental licensee partner' for north and east India and is taking steps to do so".
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)