A group representing frustrated Tim Hortons franchisees says its board members have been accused by the company of helping leak confidential information.
The Great White North Franchisee Association said its board members have been served with notices of default.
In a letter to the company posted on the association website, association president David Hughes denied the allegations and accused the company of trying to intimidate franchisees.
“We have no knowledge as to how the Globe and Mail came into possession of any confidential information, assuming that it did,” he wrote.
Hughes also threatened legal action as he said the company was “interfering with franchisees’ right to associate and directly or indirectly penalizing or threatening franchisees who choose to associate.”
Tim Hortons did not immediately return a request for comment.
The franchisee association was formed in March amid complaints by members that the parent company was using its power to extract more profit from franchisees.
Tim Hortons (TSX:QSR) has said that the company is focused on working with its elected franchisee advisory board.
A Tim Hortons franchisee moved to launch a class-action lawsuit earlier this year alleging Tim Hortons corporate parent Restaurant Brands International is improperly using money from a national advertising fund. The allegations have not been proven in court.
RBI has said in a statement that it vehemently disagrees with and denies all of the allegations.