Franchise owner who sued Hortons settles, selling two locations

A Tim Hortons franchisee who had brought legal action against the chain’s parent company has settled his suit and severed his ties to the company.

Mark Kuziora operated two locations in Toronto and was an outspoken member of the Great White North Franchisee Association (GWNFA), an unsanctioned franchisee group started more than a year ago. He was also the lead plaintiff in a class action against Restaurant Brands International Inc. (RBI).

He filed a $4-million lawsuit against RBI after the company allegedly refused to renew a licence for one of his two stores in bad faith. RBI maintained it was right in its decision not to approve a new restaurant agreement, which expires at the end of August.

Kuziora met with Tim Hortons president Alex Macedo several weeks ago, said Duncan Fulton, RBI’s chief corporate officer, and signed an agreement settling the suit about two weeks ago.

“We certainly believe it’s in everyone’s best interest,” he said.

Kuziora sold his two locations back to the company, and a new franchisee will take over operating them. Fulton would not disclose any terms of the settlement.

RBI has been reluctant to talk to GWNFA, which now also boasts an American chapter and claims to represent about half of franchisees in Canada and the U.S.. Instead, the company chooses to rely on its elected franchisee advisory board, whose scope it expanded in recent months in an effort to ease ongoing tensions.