U.S. Franchisees Suing RBI

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TORONTO — The Great White North Franchisee Association (GWNFA) U.S. is suing Tim Hortons parent company, Restaurant Brands International Inc. (RBI), reports the Globe and Mail.

The franchisee group is alleging that its members are being overcharged for a wide range of items, which they are required to source from the company’s designated suppliers. The law suit alleges “equity theft” because those wishing to sell their franchises are required to offer their restaurants to Tim Hortons for the depreciated value of their furniture, fixtures and equipment.

Last year, the Canadian GWNFA also filed law suits against RBI — one alleging the company tried to intimidate its restaurant owners and force the franchisees who formed the GWNFA out of their restaurants; the other alleging it improperly used money from a national advertising fund.

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