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PetLvr

$1.95 Billion Class Action Lawsuit Against Tim Hortons

Posted by PetLvr • 6/15/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: class action lawsuit, coffee, hart, tim hortons

Tim Hortons sued by franchisees over frozen doughnuts

Jim Middlemiss, Canwest News Service
Published: Friday, June 13, 2008

TORONTO - "Always Fresh" apparently has its price, as doughnut king Tim Hortons is finding out the hard way.
The icon of Canadian franchising has been hit with an attempted $1.95-billlion class-action suit over its conversion from a "fresh-baked" goods restaurant to a "microwaved products store."

In a statement of claim filed in an Ontario court, two Burlington, Ont., franchise owners are suing the head office on behalf of all Tim Hortons franchisees claiming that the move to an off-site supply chain involving frozen doughnuts hasn't made them any more money. Rather, they argue, it has driven up the fixed costs of a doughnut from nine cents to 20 cents without increasing sales as allegedly promised.

Source: www.canada.com/victoriatimescolonist/news/story.html?id=5292f806-bb77-4ca5-...


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There was a small blurb in the weekend paper of the news around the country and it caught my eye.

MICROWAVED DONUTS? Really? I have noticed that muffins are fresh before noon, and after dinner not so fresh, but nevertheless .. still tasty with my Tim Hortons Coffee!

But more importantly - do you think Franchisees have a right to sue?

Reply

User Comments

  1. carlgalloway
    6/15/08
    carlgalloway
    The franchise owner holds a monopoly of supply against the franchisees so I imagine legal action is probably the only course open to them, and if their fixed costs have increased without consultation or ability to increase prices to recoup the loss then it seems perfectly reasonable to sue, although I'm surprised at the amount. Perhaps this will be settled out of court arbitration style.
    [reply]
    1. PetLvr
      6/15/08
      PetLvr
      I agree 100% completely - but wonder what could happen if the courts allow this case and the franchisees win? I'd hate to lose my local Tim's and have them shut down or rebranded - just like Robin's Donuts have been doing since the parent of Coffee Time bought them out a couple years back.
  2. pointlessbanter
    6/15/08
    pointlessbanter
    Sigh... I miss Tim Hortons.
    [reply]
    1. LGramlich
      6/15/08
      LGramlich
      Me, too...

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