The move comes after Tim Hortons’s parent company sent default notices to restaurant owners on the board of Alliance of Canadian Franchisees and terminated its president’s franchise contract
. Shortly after the ACF spoke out about franchisees’ concerns, The Globe and Mail reported that the company sent a franchise termination notice to board president Ron Fox.“There will be no franchisees on our board, and our governance system will be kept confidential to protect my members,” said ACF executive chair Dave Lush, who took over as the association’s executive director last October. Mr. Lush, who has led franchise businesses in the past including Speedy Corp.
Tim Hortons spokesperson Michael Oliveira would not answer questions about Mr. Fox’s departure as a franchisee or the terms of any deal to buy his two restaurants in Brantford, Ont. Mr. Fox also declined a request for comment. In an e-mail, Mr. Oliveira wrote that the company works well with the majority of franchisees, and referred to the ACF as “a small group of franchisees who want special recognition for themselves.
While sales across the Tim Hortons chain have been going up, the increase has not made up for cost pressures. The company reported last month that the average Tim Hortons location made $220,000 in earnings before interest, taxes, depreciation and amortization in 2022, down from $320,000 in 2018, the last time the company reported such numbers.
Some Tim Hortons franchisees in the United States have also spoken out about the issue. In 2020, a group claiming to represent many U.S. franchisees filed a lawsuit in Florida saying that Tim Hortons owners paid as much as 50-per-cent more than competitors paid for supplies such as food, coffee and paper products. Mr. Oliveira confirmed that case is continuing.
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