Archive for February, 2013

Tim Hortons is doing what to the taxpayers?

February 18, 2013 1 comment

A quick calculation before you start reading;Tim-Hortons-300x60 There’s a Tim Horton’s store for every 8 600 people in Canada?   Can you say SATURATED!!

coffeeThe site  will be up and running by the end of the month that will expose what is truly happening with the taxpayers in Canada and how taxpayers are covering the loses in the hospital locations to which Tim Hortons has no real answers.

This is a very simple business, especially the hospital locations as nothing is done in the store besides serving the product. They have minimal staff to which Tim Hortons blames all the loses on, but in reality if these franchises made the kind of money that Tim Hortons has everyone believe than the wages would be nothing compared to the $1.5 million that is being lost in just a single location (to which the taxpayers are covering). Even if the Tim Hortons business made some money the wages should not matter to the point of losing over a million dollars in a single year!! In the latest court battle that pitted the franchisees against each other and the Tim Hortons corporation it was revealed that low volume stores (mostly Western Canada, small towns, USA) are losing money and high volume stores profits are shrinking. Every lunch menu item is sold at a loss and the judge ruled Tim Hortons can make you sell whatever they want whether you make a profit or not.

If you thought this was the only site referring to Tim Hortons problems you would be mistaken. There are literally hundreds of sites that have issues with this company and this is just another, except this site exposes the issues involved with purchasing a Tim Hortons franchise. Check out some of these other sites ranging from how employees are being treated like second class citizens to how wi-fi never works;  /  /  /   /   This is just a sample of the many sites and to show this isn’t the only site exposing facts regarding Tim Hortons. Check out the threatening letters below that my family has received by exposing this to the public. We are not afraid and we will help as many people as we possibly can.

In essence buying a Tim Hortons franchise is like purchasing a job. If you continue reading the site you will see 3 clauses that constantly get brought up with the most important one being the selling of the business. It states right in the contract that the Tim Hortons business you purchase for $450,000.00 is worth less than ZERO in 5 years. Tim Hortons owns the good will (the effort you put in to build the business) so all you get is the price that is pre-determined in the contract everyone signs. So if you’re not saving all that money or if you’re losing money you will be cutting a cheque to Tim Hortons to leave! You get NOTHING for the Tim Hortons business when it’s time to sell and the only person who can purchase the business in the first 5 years of operation is Tim Hortons. In Winnipeg Judge Joyal ruled that this contract is a simple commercial agreement. An example of that would be just like buying a car, but does it state in the purchase of the car a pre-determined value and who you can and can’t sell it to? No one would ever buy a car under those terms yet people continue to sign the contract (full contract shown below) to purchase a $500,000.00 business that is not worth anything!

Everyone buys a business to run it well and to sell it for a large profit in the end. Not if you own a Tim Hortons!!! Everyone signs the same contract unless your one of the many that get to operate the business and call yourself an “owner” by only signing an operating agreement and perhaps put down a $10,000 deposit, sometimes nothing (these are usually former District Managers). That’s correct, an “owner” just down the street that is competing against you paid nothing for the store (this also inflates actual sold stores).

Most people you know raking in over a $150,000 per year are genuinely happy people who you think would want to pay great staff fair wages. All of the spin Tim Hortons puts out there is because you the consumer are paying for it. 4% of everything that is purchased goes directly into advertising so they can spin anything they want and the media just prints it.

To all Canadian Taxpayers, do you want your hard-earned money spent to pay the debt that Tim Hortons hospital locations lose each year. Its costing us millions to support a company that is publicly traded and earns money for shareholders. It’s time for Tim Hortons to come clean and let the Taxpayers of Canada know what is really going on, that Tim Hortons has no solution to change this. If you are thinking of purchasing a Tim Hortons franchise you can contact us for help and guidance.  If you’re a store owner in trouble we know a way out and can help you get your money back. You can get a hold of us on the contacts page, it will be kept private.

Tim Hortons/Taxpayers

Categories: Uncategorized
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