Tim Hortons sued by franchisees

OAKVILLE Ontario Tim Hortons Inc. said it would contest a lawsuit filed by two franchisees over the chain’s switch to off-site doughnut production. The plaintiffs allege that the shift is a breach of contract because it failed to boost sales as promised.

The lawsuit further alleges that the company's adoption of a lunch menu featuring sandwiches and soups has not generated profits for franchisees because of the items' low margins and high operating costs.

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