Tim Hortons Franchisees Sue Over Reduced Profits

A group of Quebec-based Tim Hortons franchise owners is suing the parent company, TDL Group Corp. They claim that strict controls within the licensing agreement are causing lower-than-expected profits.

The franchisees allege that TDL sets prices for both menu items and ingredients, leaving no flexibility to adjust based on market conditions. Additionally, they say mandatory renovations and investments are cutting into their bottom line. They claim this has resulted in an $18.9 million loss between 2021 and 2023.

TDL Group Corp. vigorously denies these allegations, stating Tim Hortons remains a highly profitable business for franchisees in Quebec.