The lawsuit has been filed by the Great White North Franchisee Association USA Inc. (GWNFA USA). It said it represents most Tim Hortons franchise holders in the United States.
The lawsuit against the company, its parent Restaurant Brands International Inc., and former president Elias Diaz Sese said franchisees have to pay up to 50 per cent above what competitors pay for supplies such as coffee, baking goods, meat and paper products.
The lawsuit filed in a Florida court Thursday claims said Restaurant Brands International Inc. uses a “supply chain business disguised as a franchise system.”
Under the arrangement, the lawsuiot alleges Tim Hortons affiliate TDL Group sells supplies and products to Tims, which then sells them to a distributor, which in turn sells them to franchisees.
The association says that chain means Tim Hortons franchisees are forced to purchase items for as much as US$104 more for a case of applewood bacon, about US$24 more for a box of soft drinks and roughly US$12 more for a case of plastic straws than Wendy’s franchisees pay.
