What is the deductible fee for a 20-year franchise agreement? For more franchising information, please feel free to check out all our frequently asked questions online at www.timhortons.com. The franchise fee is currently $35,000 and is due prior to the opening of the store restaurant. The lawsuit states that the company limited suppliers who could use franchisees to suppliers isolated or related to RBI, the Canadian parent company of Tim Hortons, Burger King and Popeyes Louisiana Kitchen. Mayer could not drop the association, but he also said that the transformation times the company offers – the complete renovation by the end of the year – are not feasible. Tim Hortons terminated its franchise agreement last month, and its business closed on September 27. The complaint argues that these rebates led suppliers to impose excessive prices on goods and services, which affected the profits of franchisees. Tim Hortons would not renew the franchise agreement at one of Dave Mayer`s three restaurants in Rochester, N.Y. last month, apparently because the restaurant was not processed on time, in accordance with the operator`s contract. The issue of Tim Hortons` reproaches is a great one, both for the brand and for the RBI as a whole. About 60% of RBI`s revenue comes from Tims (the company also operates Popeyes Louisiana Kitchen). Much of this revenue comes from Tim Hortons` sales in the franchise supply chain. Mayer himself has been with Tim Hortons for 23 years. He first worked with the company to help operators improve their profitability before choosing to become franchisees themselves.
Mayer opened its first unit in Rochester in 2003. He opened another one in 2005 and a third in 2010. But in this case, it appears that Tim Hortons used its franchise agreement with a prominent member of an independent association to induce the group to end the lawsuit – a move that shocked the group`s lawyers, particularly in light of the undisguised claim in a written letter. „It`s really hambone to say it in writing,” said Jerry Marks, a Florida lawyer at the law firm Marks Klein.