U.S. Tim Hortons franchisee organisation sues RBI over purported cost gouging, equity theft

A organisation of U.S. Tim Hortons franchisees filed a lawsuit Tuesday alleging their primogenitor association intent in cost gouging and equity theft.

Restaurant Brands International “established a really assertive and crude investment devise in a Tim Hortons franchisee system, that resulted in a mercantile squeezing of Tim Hortons franchisees by RBI,” reads a fit filed in a Eleventh Judicial Circuit of Florida justice on interest of a American section of a Great White North Franchisee Association.

None of a allegations have been proven in justice and RBI disputes a allegations.

The U.S. GWNFA group, that says it represents about half of all American Tim Hortons franchisees, claims RBI and Tim Hortons USA frame them of income and distinction by increasing and crude franchisee fees.

RBI lifted a prices of required products and services — like food supplies, paper cups, containers and cleaning reserve — that franchisees contingency squeeze from authorized vendors, according to a suit. These prices are “significantly above” open marketplace prices, a fit alleges.

Tim Hortons franchisees compensate $104.08 some-more per box of Applewood bacon than Wendy’s franchisees do, according to a justice documents, and $23.85 some-more for boxes of diet and unchanging Coke.

It also claims a association requires franchisees who wish to sell their stores to initial offer it to a association for a five-year disappearing unheeded value of a furniture, fixtures and equipment.

The GWNFA wants a justice to announce a practices a crack of contract.

RBI mouthpiece Devinder Lamsar pronounced in an emailed matter that a lawsuit “does not during all simulate a facts.”

She pronounced a association “will respond in due march with a contribution to this U.S.-based claim” and that RBI works closely with a Canadian and U.S. advisory play done adult of franchisees committed to a devise to grow a business and franchisee profitability.

“These franchisees have been foul squeezed by Tim Hortons/RBI to a indicate where they are, in many cases, no longer viable businesses,” pronounced Jerry Marks, one of a lawyers representing a GWNFA in this case, in a statement.

“We design to stop this form of violent franchisor behaviour.”

RBI is also confronting dual lawsuits from a Canadian GWNFA chapter, including one alleging a association improperly used income from a inhabitant promotion fund.

Shares of RBI sealed Tuesday at $84.87 after slipping 44 cents, or 0.52 per cent, on a Toronto Stock Exchange. 
-0.44 (-0.52%

Article source: https://www.cbc.ca/news/business/tim-hortons-franchissee-group-suit-1.4759617?cmp=rss