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U.S. franchisee files suit against Tim Hortons, alleging price gouging | National Post

Weeks after achieving a breakthrough in two class-action lawsuits with restive Canadian franchisees, Tim Hortons and its parent company are facing a fresh legal fight with a Minnesota-based franchisee over accusations of price-gouging and misleading statements.

“This matter is about broken promises, unfulfilled contractual expectations and false and misleading statements and omissions,” reads a complaint filed on behalf of Tim-Minn Inc. against Tim Hortons USA Inc. and Restaurant Brands International in the U.S. district court for the district of Minnesota Wednesday.

Tim-Minn Inc., a previously inexperienced franchisee, entered into an agreement with the two entities to develop more than 280 of the coffee-and-doughnut chain stores in the state where there were previously none. By the time Tim-Minn filed the lawsuit, it had opened 14 locations.

The company invested millions of dollars into the venture and can no longer operate it due to the actions of Tim Hortons and RBI, according to court documents.

“This lawsuit address a flawed and deceptive economic model manipulated by those in control of the franchise system for their own self-serving gain,” the complaint reads.

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U.S. franchisee files suit against Tim Hortons, alleging price gouging | National Post.

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