As I mentioned before, Right to Associate is the “game changer” for intelligent groups of Canadian franchisees.A good article by Hollie Shaw Tim Hortons franchisees sue corporate parent for $850M, alleging bullying, and
TORONTO — Tim Hortons franchisees who created an association to address their grievances with parent company Restaurant Brands International Inc. have filed an $850 million class action lawsuit against the company, the fast food operator is trying to intimidate its restaurant owners and force the franchisees who formed the group out of their restaurants.
Les Stewart, an Ontario-based franchisee consultant, said the issuance of default notices to franchisees is highly unusual.
“This shows a predatory franchisor at its worst and it suggests (RBI) is taking a juvenile approach towards Canadian law,” he said. “It seems that they don’t understand the difference between a franchisee and an employee.”
It is not an easy legal road for master franchisors to take back healthy franchises, Stewart added.
“The Superior Courts understand how franchising works.”
I was pleasantly surprised to find out how discerning Superior Court Justices are about the David and Goliath, predatory nature of franchising.