Toronto, ONT: Tim Hortons is facing an unfair business practices class action lawsuit filed by a group of Tim Hortons franchisees alleging the company has mismanaged the brand, making it harder for the franchisees to stay in business.
The class action lawsuit is brought by a group of franchisees who go by the name of the Great White North Franchisee Association. They allege that since the fast food chain was purchased by US-based Restaurant Brands and merged with Burger King in 2014, the iconic Canadian coffee and doughnut chain has seen increased costs. Further, the group allege they are not allowed to increase prices to recover those costs.
Unable to reach an agreement with management earlier this year, the Great White North Franchisee Association has filed the class action. They are seeking $500 million in damages.
"Since its acquisition," the statement of claim reads, "[Restaurant Brands] has used various strategies to extract more money out of the Tim Hortons franchise system at the expense of franchisees."
The suit is filed on behalf of one franchisee, 1523428 Ontario Inc., which owns two Tim Hortons franchises in the Toronto area. The complaint seeks other plaintiffs to join the action.
