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Money Tim Hortons franchisee sues parent company

23:30  15 may  2018
23:30  15 may  2018 Source:   msn.com

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A Tim Hortons franchisee filed a $4-million lawsuit against the coffee-and-doughnut chain's parent company after he says it refused to renew a license for one of his stores in bad faith.

"The actions of the defendant were callous, wanton and in total disregard of the rights of the plaintiff," reads a lawsuit Mark Kuziora filed in the Ontario Superior Court against TDL Group Corp., a subsidiary of parent company Restaurant Brands International.

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A Tim Hortons franchisee filed a -million lawsuit against the coffee-and-doughnut chain's parent company after he says it refused to renew a license for one of his stores in bad faith.

TORONTO — Ongoing tensions between Tim Hortons franchisees and the brand’s parent company have spilled over into the United States, where a The tensions pushed Tim Hortons ’ franchisee advisory board to write to GWNFA last month pleading with the group to stop airing their complaints

Kuziora, an outspoken member of a dissident Tim Hortons' franchisee group, owns two locations in Toronto. The lease for his store at 200 Bay Street expires August 31.

a close up of a coffee cup© Provided by thecanadianpress.com He says he was told in early April that he would be denied the renewal after months of negotiations.

Kuziora belongs to the Great White North Franchisee Association, a group that claims to represent about half of Canada's Tim Hortons franchisees and formed to voice the franchisees' concerns.

He is also the lead plaintiff in a class-action lawsuit filed by the GWNFA alleging RBI improperly used money from a national advertising fund, funnelling nearly $700 million earmarked for advertising, marketing and sales promotions to itself and TDL. RBI has denied the allegations, which have not been proven in court.

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A franchisee is suing the parent company of Tim Hortons after he says it acted in bad faith when declining to renew a licence for one of his stores. Mark Kuziora filed the -million suit in the Ontario Superior Court of Justice against the TDL Group Corp., a subsidiary of parent company Restaurant

A franchisee is suing the parent company of Tim Hortons after he says it acted in bad faith when declining to renew a licence for one of his stores.

The GWNFA and Tims have also recently sparred over a $700-million renovation plan to bring a more natural look and open-concept seating to Tim Hortons locations. GWNFA said the plans — which asked franchisees to kick in $450,000 each for renovations — were "ill-conceived.''

Last spring, RBI started discussing future renovations of the Bay Street store with Kuziora, according to the lawsuit, and confirmed its established practice of "granting 100 per cent of term renewals for franchisees prepared to undertake renovations would be followed."

Kuziora committed to the renovations with the understanding the company would renew his lease, according to the suit filed last month.

On March 27, Greg Hiltz, the area franchise lead for central Canada, informed Kuziora it would not happen, despite previously confirming the company had no plans to deviate from its standard practice.

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A group of U.S. Tim Hortons franchisees filed a lawsuit today alleging their parent company engaged in price gouging and equity theft. The American chapter of the Great White North Franchisee Association filed the suit in a Florida county court claiming Restaurant Brands International and Tim

The cost of a Tim Hortons ® franchise varies depending on the restaurant size and location, along with other factors. For mutual success and satisfaction, we must ensure that every Franchisee possesses the necessary skills, commitment level, dedication, work ethic, character and strong people skills.

Tim Hortons Canada president Sami Siddiqui wrote in an email that the company stands by its decision.

"The process of entering into a new franchisee license is never automatic," he said, adding it's subject to a detailed business review, which was done and led to the decision.

The lawsuit claims RBI decided to reject the renewal in bad faith based on Kuziora's tense relationship with management.

RBI and the GWNFA have been embroiled in a public battle since the group formed more than a year ago, with the parent company largely choosing to ignore the association aside from specific remarks and filing legal action against them.

Tim Hortons president Alex Macedo recently admitted the company could have handled things better and said he's spoken to GWNFA members on a cross-country tour of visits with franchisees aimed at repairing the relationship.

Siddiqui said that Kuziora's second location remains open and the company "will continue to help him be a successful operator."

The company declined to answer whether it had filed a statement of defence. None of the allegations have been proven in court.

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Companies in this story: (TSX: QSR)

Tim Hortons to pilot all-day breakfast amid tensions with franchisees .
Tim Hortons will pilot all-day breakfast in a dozen Ontario locations and look to introduce a children's menu, and a delivery and loyalty program, in a bid to regain the trust of franchisees and customers. The fast-food giant's president, Alex Macedo, told The Canadian Press that the all-day breakfast experiment will begin at a handful of Hamilton and Brampton locations later this summer and include all of the menu items typically available at the store in the morning. If successful, he said the company would consider rolling it out further."The demand is loud and clear," he said.

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