A class action lawsuit is filed against Tim Hortons by its franchisees. The suit accuses the fast food restaurant chain of failing to manage the brand in a proper way. As a result, it became harder for the franchises to stay in business.
In fact, a group of Tim Hortons franchises known as Great White North Franchisee Association filed the unfair business practices class action lawsuit. According to the lawsuit, US-based Restaurant Brands bought the Canadian well-known fast food restaurant. Thus, it was in 2014, when it merged with Burger King. After this, the Canadian restaurant faced hard times. In other words, the costs have reduced significantly. In addition to that, the suit notes that the group of franchises doesn’t have the opportunity of raising the prices in order to recover these costs. Actually, they aren’t allowed to take this step.
It’s worth noting that the franchises attempted to reach an agreement with the management. It occurred earlier this year. However, they didn’t succeed. That’s why the Great White North Franchisee Association made a decision of filing a class action lawsuit. Here is what they seek: $500 million in damages.
The lawsuit also alleges Restaurant Brands has put into practice different strategies aimed at extracting more money out of the fast food restaurant franchise system. Furthermore, this was done at the expense of its franchisees, as the suit notes.
The lawsuit, filed on behalf of the franchisee 1523428 Ontario Inc., is seeking other plaintiffs to join the action.
About Tim Hortons
Tim Hortons Inc. is an iconic Canadian fast food restaurant chain. A lot of customers from various corners of the world especially love its well-known coffee and donuts.
Did you know that the first Tim Horton restaurant opened in 1985, Amherst, New York? The peculiarity of Tim Hortons coffee is that only a premium blend of 100% Arabica beans are used.
Tim Hortons can boast with over 4613 restaurants located in nine countries ( as of December 31, 2016).
It was in 1964 when the restaurant was founded in Hamilton, Ontario. The founders of the restaurant are Tim Horton and Jim Charade. Later a partnership was established with Ron Joyce. Thanks to Joyce’s efforts, the restaurant chain turned into a multimillion franchise.
Another essential page of the restaurant’s life occurred on August 26, 2014, when Burger King paid $11.4 billion to buy it. So, the Canadian fast food restaurant became a subsidiary of Restaurant Brands International.