Ottawa looks at Tims concerns

The federal government is looking into concerns raised by a dissident group of Tim Hortons franchisees about the potential violation of terms Ottawa placed on a deal that saw Canada’s most iconic restaurant chain taken over by a Brazilian firm.

A spokesperson for Innovation Minister Navdeep Bains said Thursday the government will investigate allegations that Tims owner Restaurant Brands International has failed to live up to promises made to the federal government under the Investment Canada Act in 2014.

“We’re aware of the concerns raised by the franchisees and looking into them,” spokesperson Karl Sasseville said in a statement. “We are monitoring compliance with the undertakings, as we do with all investments.”

The government’s response is in regards to a list of grievances outlined in a letter sent to Bains earlier this month by lawyers representing the Great White North Franchise Association, which represents about half of Canadian Tims franchisees.

In the letter, the attorneys cite numerous commitments that Brazilian firm 3G Capital, which owns RBI, made to the federal government when it acquired Tim Hortons in 2014, including maintaining franchisee relationships, the rent and royalty structure for five years and existing employment levels at Tims franchises across Canada.