Tim Hortons franchisees lose $2-billion doughnut lawsuit

[Locutus]

Tim Hortons has won a major legal battle against franchise owners, now that a judge has tossed out a proposed $2-billion class-action lawsuit over the price of doughnuts.


Tim Hortons franchisees benefit from an iconic national brand, and with such high profits from coffee sales, they should accept lower margins on food, according to the decision by Justice George Strathy of Ontario Superior Court.


“The fact of the matter is that under the Tim Hortons system, the franchisees are given the licence to sell Tim Hortons trademarked coffee (PRINT FRICKIN' MONEY) — a brand that is about as iconic as there is in Canada,” the judge wrote.


“What matters, at the end of the day, is whether the franchisee makes sufficient profit overall to justify his or her investment and to remain in the business. The suggestion by the plaintiffs that [Tim Hortons] has an obligation to price every menu item so that they can make a profit on that particular item is not supported by the contract, by the law or by common sense.”




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Tim Hortons franchisees lose $2-billion doughnut lawsuit | News | National Post

 

[mentalfloss]

“The fact of the matter is.."

 

[DaSleeper]

Predictable response:roll:

 

[mentalfloss]

Predictable response:roll:

"The fact of the matter is.." is one of my pet peeves phrases that I posted in the members thread.

It drives me batty.

 

[lone wolf]

Some Hortons franchisees run their own little scams - like the one in Greater (than what?) Sudbury who keeps all the money from Smile cookies

 

[Cannuck]

Predictable response:roll:

Even more predictable response.

Some Hortons franchisees run their own little scams - like the one in Greater (than what?) Sudbury who keeps all the money from Smile cookies

OK, I'll bite (excuse the pun), what are Smile cookies?

 

[tay]

I think they are fundraising cookies they put out once a year at least.


I can't help but think about Tim Bits, the centre of a donut that used to a throw away.


I recall so many decades ago as little kids we would go down to the local little bakery on Saturdays (well okay, there were only 2 main streets in our little place) and we would buy donuts. The cashier would give us bags of what is now known as Tim Bits for free.


If only that owner had known that people would actually pay for them...............

 

[shadowshiv]

I remember when you could purchase "day olds" for a good price. Alas, I think that practice has been abolished.

 

[karrie]

'Loss leaders'


It's a common business practice. I can't believe you'd buy a franchise and expect to be one of the only businesses on the planet that doesn't have loss leaders.