By Lethbridge News Now (Geoff Smith)

Tim Hortons removes outspoken Lethbridge franchisee from four locations

Sep 4, 2018 | 12:15 PM

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, did not immediately return a request for comment. But spokesperson Jane Almeida told The Canadian Press the franchise agreement prohibits owners from sharing confidential information publicly and disparaging the company and brand.

In a statement provided 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.

(Geoff Smith, with files from The Canadian Press)