The Globe and Mail – US Tim Hortons franchisee sues company, closes two restaurants

The Globe and Mail, a Canadian national newspaper, reports A U.S. Tim Hortons franchisee has closed two restaurants amid a dispute with the coffee shop company. Show Me Hospitality LLC, a developer for Tim Hortons in the St. Louis area, is suing Tim Hortons USA Inc. for failing to meet its obligations.

The franchisee says after Restaurant Brands International Inc. acquired Tim Hortons in 2014 it asked Show Me Hospitality to increase its obligations to develop Tim Hortons restaurants in the St. Louis area from 40 restaurants over five years to more than 200 restaurants over 10 years. However, after Show Me Hospitality says it rejected the demand, it alleges Tim Hortons stopped approving locations for restaurants and failed to provide branding and advertising.

 

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