The CBC says a Toronto Tim Hortons franchisee with two locations has launched a $500-million class-action lawsuit against the parent company for mismanagement of the brand. It accuses Restaurant Brands International of squeezing franchise operators so hard it is a challenge for them to stay in business. The complaint joins widely reported dissatisfaction with the nickel and dime state of Tm Hortons service since RBI took over. The CBC says there’s a “group” of franchisees but then notes the $500,000 action is brought by 1523428 Ontario Inc. owner of two Tim Hortons. It must be certified as a class-action
AD FUND
“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.” A serious sore point is the so-called ad fund which was set up and made mandatory for franchisees. They have contributed some $700,00 so far with little say over how the money is spent.