Tim Hortons takes over four franchises
Coffee shops owned by head of unsanctioned franchisee group that has been critical of company
The parent company of Tim Hortons seized the restaurants of the head of an unsanctioned franchisee group after he allegedly leaked sensitive corporate news to the media.
The president of the Great White North Franchisee Association, which has served as a thorn in Restaurant Brands International’s side since its inception more than a year ago, denies the allegation he’s acted as an anonymous source and claims the company is yet again attempting to intimidate franchisees.
David Hughes received a phone call Sunday, roughly four minutes before the company locked him out of his four Lethbridge, Alta., coffee shops, he said.
He rushed to the nearest location from his house.
“Unfortunately, by the time I got there, security people had locked the doors. We weren’t allowed in,” he said.
Between four and eight years remained on the franchisee agreements for each location, Hughes said.
RBI confirmed that the four shops remain open but are under corporate management until the company selects a new franchisee to run them.
It declined to provide financial details of the termination agreement.
“The Tim Hortons franchisee agreement clearly states it is not allowable for any restaurant owner to share confidential company information with the media; disparage the company or the Tim Hortons brand in the media or with community partners and vendors; or ultimately harm the Tim Hortons brand in any way,” spokesperson Jane Almeida said in an email.
The company’s decision has nothing to do with Hughes’s position with the association, she added.
Last week, The Canadian Press received a copy of a letter from the franchisee group’s lawyer to the head of legal at the coffee chain alleging coffee pots have been shattering and injuring employees. RBI denied the accusation, as did the manufacturer.
Almeida declined to respond to questions about whether RBI believes Hughes leaked the letter, other information or both.
Last year, RBI accused Hughes and association board members of leaking confidential information to the former CEO of Tim Hortons, who then provided it to a Canadian newspaper. Hughes, the association and the former CEO all denied the accusation at the time.
Hughes denies leaking information to the media, saying this is the first time he’s been allowed to speak to a journalist “forever.” He last spoke to The Canadian Press in 2017.
Still, he’s been outspoken about RBI’s alleged mismanagement of the coffee-and-doughnut chain.
He’s critiqued the high cost of new espresso machines, for example, and repeatedly accused RBI of trying to intimidate franchisees — a claim the company has denied.
The company offers multiple avenues to raise issues with management, Almeida said, noting the team under new brand president Alex Macedo is more open.
It’s unclear if Hughes will remain president of the association, which did not immediately respond to a request for comment.