Tims tensions move south of the border

Ongoing tensions between Tim Hortons franchisees and the brand’s parent company have spilled over into the United States, where a dissident group of franchisees has filed a new lawsuit.

The Great White North Franchisee Association’s (GWNFA) U.S. branch, a group claiming to represent at least half of Tim Hortons’ owners south of the border, said Thursday that it is suing Restaurant Brands International (RBI), which has headquarters in Oakville, Ont., over a contract clause forcing all disputes to be handled in a Miami court.

“RBI claims to be a Canadianbased company to avoid U.S. taxes but yet when franchisees attempt to pursue legal claims against its various brands, including Tim Hortons, RBI takes a conflicting position and claims to be a Miami, Fla.-based company,” the franchisee association’s lawyer Robert Einhorn said in a statement Thursday.

“It uses its forum selection clause in its franchise agreements to force all litigation in its favoured court, the federal court located in Miami. These contract disputes are based on state law and properly belong in the state courts.”

The group, which has vocally opposed RBI strategy, argues that instead, owners should have their dispute handled in the franchisees’ home state.

The company said Thursday it cannot comment on the specifics of the ongoing legal matter, but added the allegations “are completely false.”

“We’re proud of the way we conduct our business, and nothing will distract us from our primary focus, which is serving the needs of our restaurant owners and guests,” it said in a statement.