It’s the latest shot in the war between Tim Horton’s head office and a so-called ‘renegade’ group of franchisees. Horton’s Head Office has repossessed four Tim’s stores from the president of the organization that’s taking the corporate owners to court over alleged breach of promise after the takeover…
Is the sun setting on Tim’s? All the usual indicators are pointing down…
The Canadian Press (CP) is reporting that Restaurant Brands International (RBI), the corporate owners of the Tim Horton’s Coffee shop chain, have seized four Horton’s franchises from the Alberta operator who heads the Great White North Franchisees’ Association (GWNFA).
David Hughes told Canadian Press he received a phone call only five minutes before head office agents and security guards padlocked his franchises yesterday. The franchise agreements governing the stores had between four and eight years left to run.
RBI confirmed to CP that the locations remain open, but are under head office management until a new franchisee can be fund to take them over.
What RBI says
“The Tim Horton’s franchisee agreement clearly states it is not allowable for any restaurant owner to share confidential company information with the media; disparage the company or the Tim Horton’s brand in the media or with community partners and vendors; or ultimately harm the Tim Horton’s brand in any way,” wrote spokeswoman Jane Almeida in an email. She also insisted that RBI’s decision to repossess the franchises had nothing to do with his position at GWNFA.
Last year, RBI accused Hughes of leaking confidential company information to outsiders who then passed it on to Canada’s national newspapers.
What GWNFA says…
Hughes denied the leaking claim then, and continues to deny it.
Since he cannot remain president of GWNFA if he owns no franchises, he says he’s staying on as a consultant and working with the group’s legal team.
“We’re going to fight this, obviously,” Hughes said, “Because what they’re trying to do is get rid of the president of the Great White North. This is just pure intimidation.”
What it all means…
This most recent incident between RBNI and GWNFA is simply a further escalation of the dispute that’s been simmering – and, at times, boiling over – since RBI took over Tim’s several years ago. GWNFA already has several claims against RBI in the courts, and it looks like another will soon be added.
Meanwhile, Tim’s continues to lose market share among the Fast Food chains, stock prices are down, and customer loyalty to the brand is suffering big time.
One wonders when the RBI brass are going to realize that, to get the most most of their franchise operators, they have to show the front line people some respect and give them the tools and resources they need to succeed…
~ Maggie J.