TORONTO — Canadian Tim Hortons franchisees have received copies of the proposed settlement in two class-action lawsuits filed by the Great White North Franchisee Association (GWNFA) against the brand’s parent company, Restaurant Brands International (RBI), according to The Canadian Press.
The agreement, which was filed in Ontario Superior Court on March 6, addresses allegations that the company improperly used funds from a national advertising fund and tried to intimidate its restaurant owners and force the franchisees who formed the GWNFA out of their restaurants.
The agreement addresses points laid out in the term sheet submitted last month, as well as greater detail on the Tim Hortons franchisee advisory board will function to increase transparency. The proposed settlement will also allow franchisees to negotiate some contracts, such as insurance and dairy, on their own in the future.
Tim Hortons has also agreed to rescind brand protection and breach of media policy notices served to six GWNFA members last year and extend the franchisees’ agreements by 10 years. Franchisees have until mid-April to accept the settlement or request to opt out.
