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Jun 26, 2017

Tim Hortons franchisees form alliance in U.S. amid 'disintegrated' trust in RBI

Tim Hortons

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A Tim Hortons alliance group has expanded into the United States, with the purpose of helping franchisees who are concerned over the alleged mismanagement of franchise operations and its parent company Restaurant Brands International (QSR.TO).

The association, called the Great White North Franchisee Association USA comes after the March launch of GWNFA in Canada, and is represented by Robert Zarco and Robert M. Einhorn of law firm Zarco Einhorn Salkowski & Brito P.A.

“The long-term success of franchise systems like Tim Hortons depends on trust in the franchisor and a fair and equitable distribution of profits,” Einhorn said in a release Monday. “Since taking ownership, trust in RBI has disintegrated and it has aggressively imposed changes to the system without consultation and with contempt for the financial well-being of franchisees in the front line.”



According to a release issued by GWNFA USA, the Canadian and U.S. alliances, who are both being advised by Terrence Connoy, will collaborate to address common concerns, which include: the imposition of performance metrics, intimidation of franchisees, the abuse of procurement powers, ability to sell franchises at market value and the use of money from franchisees’ ad funds.  

The alliance comes a week after a Tim Hortons franchisee said he was seeking a class-action lawsuit against RBI, alleging it improperly used money from a national advertising fund. Tim Hortons President Elias Dias Sese stepped down from his role the same day to take on the job of president of international expansion.