Tim Hortons Franchisees Advertising Fund - Sotos Class Actions

Tim Hortons Franchisees Advertising Fund

This class action is on behalf of “Tim Hortons” franchisees operating in Canada on or after December 15, 2014.

In December, 2014, the shares of The TDL Group Corp. (TDL), the franchisor of the Tim Hortons franchise system, were acquired by Brazilian-based private equity firm, 3G Capital, through a subsidiary of 3G, Restaurant Brands International Inc. (RBI). The claim alleges that since the acquisition, TDL and RBI have used the advertising fund comprised of contributions by franchisees in ways in which the fund had never historically been used and which are not permitted. The claim alleges that, contrary to the franchise agreements in place with the franchisees, TDL has funnelled this money to itself for its benefit and the benefit of RBI and executives at the wrongful expense of the franchisees.

The claim alleges that TDL, and its related entities, have breached obligations to franchisees through their use of advertising fund monies contributed by the franchisees. The claim also alleges related breaches of statutory and fiduciary obligations to franchisees by these defendants.