Tim, as in Tim Hortons (TH) has had some problems as of late. So do, or did, some of its franchisees and they have turned into "rebels" of a sort. As you may recall, Tim Horton (1930-1974) used to be a professional Canadian ice hockey giant, one of the '100 Greatest NHL Players' in history .
Tim and his buddy built a great chain of donut shops. That was decades ago and a long-time favorite for anyone thirsting for a cup of coffee with a little sugar fix on the side.
Who doesn't need a Fix, once in awhile?
In 1964, Tim was a cofounder of the Tim Hortons chain of corner-store-type fast food places catering mostly to coffee and donut lovers. Really, who could refuse a "honey cruller" or "glazed sour dough donut" instant sugar-fix, at least once in awhile?
Just as an aside, a hunting buddy of mine and regional police officer (deceased) was rumored to have been in such a need for a sugar-fix that he used the police cruiser with the lights flashing (and sirens blaring ??) to make it to the nearest "Tim's." I only have this from hearsay but I personally do know some hardened donut aficionados of that caliber -- no need to mention any names.
50 Years Later
In 2014, 50 years after the founding of
Tim Hortons Cafe and Bake Shop, the chain of then several thousand donut shops was acquired by foreign investors and is now owned, via subsidiaries by a Brazilian company.
Beginning with January 1 of this year, by decree of the Government of Ontario, the minimum wage was increased by approximately 25%. That caused some of the
Tim Hortons locations in the province to reduce or eliminate certain employee benefits such as paid breaks and health plan contributions (
Tim Horton's on Wikipedia ).
That didn't sit too well with several franchisees who accused the chain's management of misused franchisee advertising funds and more. TH responded by statements of not renewing upcoming franchise contracts. As the
Globe and Mail reported on April 10, 2018: "Tim Hortons refuses to renew licence of franchisee leading lawsuit against parent." As the
Toronto Sun claims, " About half of the company's franchisees have joined forces with a prominent member whose license renewal was torpedoed because of his fight with the company" and "A customer boycott following the hike in the minimum wage and a Cobourg franchisee's resistance to it, cash register outages, and an acrimonious battle with franchisees on a $700-million reno plan. The company wanted store owners to pay $450,000 each."
According to information
available on the internet, "The cost of a Tim Hortons® franchise varies depending on the restaurant size and location, along with other factors. You must have an estimated $1 million in net worth and $300,000 in unencumbered funds in order to qualify. Financial requirements may be lower or higher depending on the transaction type"
Whatever may be the case, I have no comment on the veracity of any of such claims or counter-claims, nor any opinion on the government's new law.
A Battle Royale is Brewing
Now, a Battle Royale is brewing. So far the sides don't seem to get close to a resolution of the conflict. Now, even the
government is getting involved. The touchés from both sides of the issue appear to accelerate. Serious injuries may follow. For example,
TH's brand reputation in Canada slid from #4 (in 2016) to #50 in 2017. Clearly, not a sign of an improving brand reputation for the company.
The
Great White North Franchisee Association (GWNFA)
stated that it is "appalled" that the franchise owner who alleged the TH's parent company of misusing certain franchise funds would be denied a renewal for one of the restaurants at the end of August.
Obviously, the battle lines are drawn and the row has certainly left a mark already. It may take a while to sort it all out.
In the meantime, do you feel an urgent need for another caffeine and cruller fix?
I certainly could do with one!
