A franchisee is suing the parent company of Tim Hortons after he says it acted in bad faith when declining to renew a licence for one of his stores.
Mark Kuziora filed the $4-million suit in the Ontario Superior Court of Justice against the TDL Group Corp., a subsidiary of parent company Restaurant Brands International, on April 12.
It claims the company refused to renew his licence, which expires at the end of August, for a location at 200 Bay Street in downtown Toronto.
According to the suit, Kuziora believed the company would renew his licence if he committed to renovate the location -- an arrangement the company allegedly makes with all its franchisees.
It says the company acted in bad faith and was motivated to reject Kuziora's renewal because he is the lead plaintiff in a class action lawsuit against the company, is a member of an unsanctioned group representing franchisees concerned with what they say is mismanagement of the chain, and other factors.
Neither RBI nor Tim Hortons immediately responded to a request for comment, and none of the allegations have been proven in court.
