The Globe and Mail reports in its Thursday edition that just as Tim Hortons is getting close to settling franchisee disputes in Canada, the fast-food chain faces a fresh legal spat in the United States.
The Globe's Marina Strauss writes that Tim Minn Inc., a Tim Hortons franchisee in Minnesota with the right to develop more than 260 restaurants in the state, sued Tims on Wednesday, alleging it had misrepresented the financial performance potential of the business.
The 10-count complaint contends that Tim Hortons USA Inc. and its parent, Restaurant Brands International (RBI), made false financial representations to fraudulently induce Tim Minn to open more Tim Hortons restaurants than any other "area developer" in the United States.
"The anticipated income from the venture ... never materialized because those numbers were flawed, incomplete and lacked crucial variables," says the lawsuit.
The legal action comes as Tims is working out the details of a tentative, non-binding settlement of Canadian franchisees' long-running legal battles with the chain.
Tims and its RBI parent have faced franchisee lawsuits on both sides of the border over claims of mismanagement and overcharging restaurant owners for supplies.
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