By Geoff Smith (@GeoffSmithLNN on Twitter) with files from The Canadian Press

Tim Hortons removes outspoken Lethbridge franchisee from four locations

Sep 4, 2018 | 11:44 AM

LETHBRIDGE – The parent company of Tim Hortons has taken over ownership of four Lethbridge locations from a franchisee critical of the company’s operations.

David Hughes is president of the Great White North Franchisee Association (GWNFA), an unsanctioned group of store owners formed in part to address what it says is “mismanagement of franchise operations.” Hughes’ four locations – 16 Aquitania Blvd. W., 442 Scenic Dr. S., 898 Heritage Blvd. W., and 2706 Mayor Magrath Drive – are being operated corporately until Tim Hortons can find a new operator.

Restaurant Brands International (RBI), the corporate parent of Tim Hortons, told LethbridgeNewsNOW the franchise agreement prohibits owners from sharing confidential information publicly and disparaging the company and brand. An e-mailed statement from the company said Hughes’ removal was related to his conduct under his franchise agreement, and not his involvement with the association.

In a statement e-mailed to LethbridgeNewsNOW, Hughes alleged he was targeted specifically to hurt the GWNFA.

“Since our inception, the Association has (s)hone a light on many practices and policies that are detrimental to individual franchisees and the chain as a whole,” he said. “In relieving me of my stores, RBI believes they will put an end to the Association, but it will continue to be the conscience of the corporation and the brand.”

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In May Tim Hortons president Alex Macedo travelled across the country to meet with franchisees. While he was critical of the GWNFA for exposing business issues to the public, he admitted in an interview with The Canadian Press that the company “could have done a few things better.”

The specific allegations being made by Hughes and the association involve attempts to transfer wealth from franchisees to the company, cost-cutting affecting quality, setting unattainable standards, use of advertising dollars, and a lack of accountability.

One of its members has filed a lawsuit alleging bad faith in RBI’s declining to renew one of his franchises in Toronto.

RBI said concerned franchisees have many avenues they can use to raise issues.

“The management team under Tim Hortons Brand President Alex Macedo has proven to be open, accessible and willing to address all issues brought forward by franchisees,” the company said. “Sometimes we agree and sometimes we don’t, but we have no tolerance for any owner that knowingly damages our brand.”

It added the removal of Hughes was done with the support of the restaurant owner advisory board.

(This story has been updated to include a statement from Restaurant Brands International.)