Franchisees of Tim Hortons that banded together to form an association to address their complaints have filed an $850 million class action lawsuit against parent company Restaurant Brands International (RBI).
It is the second class-action suit from disgruntled Tim Hortons store owners this year.
In the suit, two franchisees, who are also board members of the Great White North Franchisee Association (GWNFA), allege that the fast food operator is trying to threaten its restaurant owners and force the franchisees that are a part of the GWNFA out of their own establishments.
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“Since the time of the corporate takeover of Tim Hortons, the relationship between Tim Hortons and its franchisees has become more adversarial than amicable,” the statement of claim filed in Ontario Superior Court read.
The two franchisees that filed the lawsuit claim that RBI and Tim Hortons operator TDL Group issued them default notices (essentially a legal claim by a master franchisor to seize a franchisee’s establishments) after management said that they and seven other owners who are also a part of the GWNFA’s board had disclosed confidential corporate information to the press.
In September, TDL issued default notices to all nine of GWNFA’s board members – eight in Canada, one in the US.
Restaurant Brands said that the franchisees should approach the company’s elected franchisee board to air their concerns.
Financial Post reported that the latest lawsuit comes amid fears that Tim Hortons may be weakening due to market saturation in Canada.
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