In a pivotal legal challenge, a group of Tim Hortons franchise owners in Quebec is taking legal action against the TDL Group Corp., the brand’s parent company, over what they claim are excessively restrictive licensing agreements that have stifled their profits. Filed in the Quebec Superior Court, the lawsuit by 16 entities representing 44 outlets contends that TDL's contractual terms grant it overarching control over the franchise operations, including pricing strategies for menu items and supplies, which the franchisees argue are out of step with market demands. They allege that these conditions have left them with little flexibility, leading to a significant loss of nearly $19 million collectively between 2021 and 2023. Despite seeking negotiations for more pricing autonomy, the franchisees report their requests were rebuffed, prompting them to accuse TDL of failing in its supportive role. In defense, Tim Hortons maintains that its franchisees in Quebec operate successfully under the brand, highlighting the acquisition of 77 restaurants by 24 franchisees in the region as evidence of a profitable partnership model. The allegations have yet to be examined in court.
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