A group of U.S. Tim Hortons franchisees filed a lawsuit today alleging their parent company engaged in price gouging and equity theft.
The American chapter of the Great White North Franchisee Association filed the suit in a Florida county court claiming Restaurant Brands International and Tim Hortons USA strip them of income and profit through increased and improper franchisee fees.
The suit also claims the company requires franchisees who want to sell their stores to first offer it to the company for the depreciated value of the furniture, fixtures and equipment.
The GWNFA wants the court to declare the practices a breach of contract.
None of the allegations have been proven in court.
RBI and Tim Hortons did not immediately respond to a request for comment.
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