Tim Hortons: On the Rack

What’s apparently got all parties more twisted than a cruller is the likelihood they’ll be compelled by the courts to reveal sensitive financial data. According to one affidavit, such revelations would “create an image that franchisees are wealthy, greedy people.”

The Globe and Mail
September 3, 2010

On the Rack
This week’s best reads in magazines
James Adams

Tim_Hortons_Macleans.jpg

Maclean’s
Sept 13, 2010

There seems to be more than just coffee brewing in Canada’s 3,000 Tim Hortons outlets these days. I’m talking about trouble, my friends. Maybe even trouble with a capital T. According to Maclean’s senior writer Michael Friscolanti, the brouhaha is over the so-called Always Fresh delivery system of dough to franchisees. Until the turn of this century, Tim’s doughnuts and muffins were baked fresh in each franchised store. But since 2001, these goods have been baked or fried at a mammoth bakery in Brantford, Ont., then frozen, boxed and shipped to stores across the country for finishing. This regime was supposed to cut down on labour costs and waste while increasing sales. However, some franchisees are complaining the frozen-dough system has proved much too expensive and deleterious to profit margins. A possible $2-billion class-actjon lawsuit looms in November, pitting “store owners against senior executives, store owners versus each other, even relative against relative.”

What’s apparently got all parties more twisted than a cruller is the likelihood they’ll be compelled by the courts to reveal sensitive financial data. According to one affidavit, such revelations would “create an image that franchisees are wealthy, greedy people.”

http://www.theglobeandmail.com/news/arts/the-weeks-best-reads-in-magazines/article1695846/


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