OAKVILLE, Ont. — A four-year-old court case filed by Tim Hortons’ franchisees against the chain has ended with the dismissal of a $2-billion class-action lawsuit, according to The National Post.
The case, which began in 2008, was filed to dispute a change in the doughnut baking procedure — from fresh baking to industrial par baking.
A franchisee group from Brule Foods (which runs two Tim Hortons in Ontario), and Fairview Donut Inc., alleged that the change drove the price of doughnuts up, cutting into profits.
“What matters, at the end of the day, is whether the franchisee makes sufficient profit overall to justify his or her investment and to remain in the business. The suggestion by the plaintiffs that [Tim Hortons] has an obligation to price every menu item so that they can make a profit on that particular item is not supported by the contract, by the law or by common sense,” said Justice George Strathy of Ontario Superior Court in his decision.
For more information, visit nationalpost.com.