Tim Hortons Is At The Centre Of Multiple Law Suits Across Canada And The United States And Here's What We Know
RBI is facing lawsuits from a franchise group in the states and two from Canada.
Canadians may, but there may be people out there who are even more mad at the company and they are the actual franchise owners themselves.
RBI, who is theof Tim Hortons, is facing multiple lawsuits from franchise owners in both Canada and the United States right now.
In the most recent lawsuit, a US franchise group is suing RBI claiming that they have been charged way above market price for necessary supplies and products that RBI forces them to buy from specific vendors.
The suit alleges that Tim Hortons franchisees paid over $100 more than Wendy's restaurants do for a case of bacon and $20 more than them for a case of Coke.
The franchise group in the suit calls it abusive behaviour by the company and that they are being poorly treated to the point that their businesses are almost not sustainable.
In Canada, the chapter of the same franchise group made up of franchisees here is also suing RBI in not one, but two lawsuits. In 2017 they filed a lawsuit against the company for bullying and intimidation, alleging that owners were treated unfairly and intimidated by the company after forming the franchise group to discuss their grievances. They are suing for $850 million.
The second suit claims that RBI used advertising funds incorrectly. According to the suit, funds which came in part from franchisees weren't used for advertising but rather RBI funnelled the money back to itself. That lawsuit is for $500 million.
Beyond the franchise group lawsuits, one individual owner in Toronto is also suing the parent company for $4 million after claiming that they failed to renew his license and that it was mistreatment and done in bad faith on the part of the company.
RBI has denied all the allegations so far, none of which have been proven in court, and has claimed that they have done nothing wrong.