Should the 1,100 Canadian Tim Hortons’ franchisees unionize themselves?

Considering the Ontario Labour Relations Board’s ruling (The Ontario Labour Relations Board Opens The Door To Franchisee Unionization In The Canada Bread Certification Case), you’d think it’s worth looking at.

Do you think the Tim Hortons franchisees have understood that they’ll likely be paying 3G Capital for the privilege of exiting their stores?

• ie. that the franchisor, currently, can unilaterally drive a franchisee’s equity into the negative and hide the fact from the market and other with confidentiality agreements.

Do you think the franchisees perceive themselves to be at war?

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Canadian franchise bankers have learned a great deal about opportunism (self-interest with deceit) from their franchise bar friends.

Canadian franchise bankers

Franchising Opportunism

Paper to Industry Canada

EXECUTIVE SUMMARY

1. Modern franchising creates opportunism by separating ownership from control.

2. Economic theory indicates fraud is likely to occur with credence goods or services. Franchise industry system owners, lenders, consultants and lawyers provide credence services.

3. Franchisors sell franchises not only to the public but to their industry peers. A sophisticated fraud model has been developed. Franchisors licence their franchisees’ opportunism to financial institutions and consultants.

4. Fraud requires a tolerant environment.

5. Malfeasance is minimized with a free flow of information regarding material investment risks. The Canadian franchise industry is characterized by high levels of information flow on the all levels with the dramatic exception of the small business investor.

6. The most accurate, independent reputation data is held by those with the greatest barriers of communication.

7. There is sufficient internal and external evidence to warrant halting franchised loan claims and to notify the appropriate federal and provincial agencies for evaluation.

8. Further research is warranted.

There would be no charge for me to create a Wordpress weblog for the Tim Hortons franchisees.

Who dislikes my involvement more: the franchisor, franchisee leadership or the franchisee lawyers?

The Canada Bread class action was valued at $350-million.

Gag orders create filthy “settlements”.

Study A Civil Action, 1998: Don’t be a patsy franchisee leader in a Big Tort action.

It stopped being about justice the moment the writ was dropped.

The truth is in the bottom of a bottomless pit.

“I don’t have to call anyone, do you?”

It’s important for Canada’s two elite class action franchise lawfirms to give the appearance of a fair fight.

Behind the scenes, the amount the franchisor will be paying out to the lawyers has already been agreed to.

Why risk paying out +$1B when $25 million to each law firm (> 0.5%) will trip up the lawsuits?

It’ll never get to trial anyway.

Tim Hortons franchisor slammed with 2nd class action: now $500+$850-million for intimidation.

As I mentioned before, Right to Associate is the “game changer” for intelligent groups of Canadian  franchisees.

TORONTO, ONTARIO: MAY 17, 2017–TIM’S–Tim’s Horton’s location on Wyecroft Road in Oakville, Ontario, Wednesday May 17, 2017. [Photo Peter J. Thompson] [For Financial Post story by Hollie Shaw/Financial Post] //NATIONAL POST STAFF PHOTO

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.

And:

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.

Tim Hortons franchisees will win if they establish their right to exist collectively.

As I said a couple of years ago, it’s the crucial but incomplete Right to Associate provisions of the franchise law that are key.

But be quick: Statement of Claim, trial and then appeal.

Ditch the lawyer if he/she delays.

Coverage:

• Tim Hortons franchisee group accused of leaking information, served notices of default
• Ex-Tim Hortons CEO denies giving confidential information from rogue franchisee group