Unlocking the Power of Digital Signature Legality for Franchise Contract in Canada

How to eSign a document: digital signature legality for Franchise Contract in Canada

if you're a Canadian you absolutely know Tim Hortons already if you aren't Canadian Tim Hortons is kind of like the equivalent to Duncan in the USA there's a 3 569 Tim Hortons locations in Canada 1800 locations of those are in Ontario alone a lot of Americans might think that's not a lot of locations but you got to remember the population of all of Canada is under 40 million people it's not much more than reside in the state of California and here in Canada most people think that Tim Horton's owners must be making an absolute Fortune because no matter the time of day you drive by a Tim Hortons there's a huge lineup customers are usually blocking out the streets now that reason to buy a Tim Hortons because there's a long lineup or any franchise for that matter is included in our top 10 stupid reasons to buy a franchise list because guess what you don't get paid on lineups you get paid on profit margins and if the margins are bad doesn't matter how big your lineups are you're not going to make good money we'll speak to that in a moment we did a video on Tim Horton's way back in 2018 we only had 2 000 subscribers at the time and I pointed out reasons why Tim Hortons may not be as great an investment as people think and since that time average ebitda which is earnings before interest taxes depreciation and amortization has dropped by over one hundred thousand dollars a year average for franchise owners some of them a lot higher so if you ever wondered how much do these Tim Horton owners make back in 2018 the average ebitda across the system was around three hundred and twenty thousand dollars a year that's not bad but that number as of last year dropped to two hundred and twenty thousand dollars then of course minus your interest your taxes Etc now two hundred thousand dollars is not bad money but keep in mind how much work is involved hiring training attrition customer satisfaction in one of the highest volume environments in food food and guess what an employee doesn't show up guess who has to cover for them and we're very aggressive environment right now in terms of hiring people also keep in mind a traditional store Tim Hortons can cost up to two million dollars to open and that does not even include your real estate and to buy a Tim Hortons you need to have a net worth of uh 1.5 million and you need to have five hundred thousand dollars liquid on encumbered cash to even be considered it's the number one on our list of red flags for Tim Hortons is declining profits and low margins and remember two hundred and twenty thousand dollars that is the average keep in mind around half of the Tim Horton stores earn even less money than that now ask yourself is that a good return on an investment of one to two million dollars next issue is location now as someone new to the Tim Hortons franchise system you get whatever locations are left over the first four thousand owners that are in the system obviously they pick the best locations that are out there also keep in mind Tim Hortons offers existing owners any new new location that comes up first they get first dibs whatever nobody wants that goes to the new buyer this is why getting in with an emerging franchise brand a newer franchise brand can be a good strategy it's similar to people who bought into Tim Hortons decades ago they made a lot of money and they got all of the best territory speaking of territory that's our number three and taken from the 2023 Tim Hortons franchise Disclosure document your territory is basically your store Tim Hortons can open a competing store wherever it wants to even right next door to you should they want to do that now it's very unlikely they would ever do that but Tim Horton's corporate has been quite heavy-handed against franchisees in the past more on that in a minute and number four Tim Hortons is known longer a Canadian owned chain Burger King purchased Tim Hortons for 11.4 billion dollars back in 2014 and they actually became a subsidiary of the oakville-based restaurant Brands International and RBI is majority owned by a company from Brazil it's called 3G capital and side note just want to let you know the Subway franchise chain you may not have heard this yet it not a lot of news out there Subway chain may be sold in the near future they're looking at offers in the 10 billion dollar range apparently that's actually less than RBA RBI paid for Tim Hortons and you'll want to subscribe if you want to hear updates on that potential sale now back when RBI took over Tim Horton's many analysts and ourselves as well suggested this company takeover is likely to have overwhelmingly negative consequences for Canadians that was actually a quote from Canadian policy alternative study now the study analyzed 3G capital's past history of takeovers and those included Burger King Hines and Anheuser-Busch and they stated it has a 30-year history of aggressive cost cutting which could hurt Tim Horton's employees small business people Canadian taxpayers and consumers now almost a decade later some might suggest this statement was remarkably prescient and number five and uh for the folks who've been going to Tim Hortons for a longer period of time you'll know about this Tim Horton's food is no longer baked in the store more than a decade ago Tim Hortons actually switched switched from baking fresh in store to having their goods partly cooked off site they're frozen then they get delivered to stores and this helps corporate as they make good margins on these baked goods but franchisees not so much and in 2008 there's actually a class action lawsuit over this switch to par baking for and I quote breach of contract breach of Duty Affair dealing negligent misrep presentation and unjust enrichment and the lawsuit cited that franchisees costs to produce a single donut literally tripled from six cents to 18 cents per donut it required new equipment and other expensive investment now that case was eventually dismissed however needless to say franchisees were not happy making three times Less on a donut than they had prior to this par baking and having to now buy all of their goods from corporate and that brings us up to number six many franchisees to this day are not happy with Tim Hortons and just last week RBI terminated the franchise contract of the president of a group that was representing unhappy franchisees Ron Fox he owned his restaurants for over two decades he did something corporate didn't like he was saying negative things about Tim Hortons and his view perfectly valid so they just got rid of him and they took his stores now if you saw our 2018 video we covered the 850 million dollar class action lawsuit where franchisees sued Tim Hortons for bullying and intimidation now the statement of claim read since the time of the corporate takeover of Tim Hortons the relationship between Tim Hortons and franchisees has become more adversarial than amicable now Tim Hortons claimed this group was only a few disgruntled owners and has warned franchisees about spreading quote unquote misinformation to the media now the president of the gwnfa however suggests that over half of all Tim Horton's franchisees had joined in this battle against corporate now Tim Hortons then seized the four restaurants of the president of the Gen of the then gwnfa now in 2019 they settled two lawsuits from franchisees for termination after franchisees agreed to adhere to policies on not speaking with reporters or engaging in behavior that could be seen as damaging to Tim Horton's brand now things stayed quiet for a few years but franchisees are saying now they are once again at a Breaking Point now back in the day there was another 500 million dollar class action at the time suggesting the company was gouging them on ad funds and were in general taking advantage of franchisees now public sentiment towards Tim Hortons at that time as well there's a lot of problems we won't get into those right now but Tim Hortons had dropped a massive 25 points in more than 45 spots in a corporate reputation study of which corporations Canadians admired the most Tim Hortons had always been a top five Tim Hortons Canadian iconic brand and institution but that year they had dropped to number 50. and last but not least number seven stores are closing and this data is taken from their FDD 2015 saw net store closures of 122 stores 2019 closed 71 stores 20 20 23 stores and this is just in the USA alone they don't have a lot of stores to lose in the USA now from 2014 to today the USA Tim Hortons franchise system they've gone from 880 stores to only 637 stores and they're relatively new in the US now seemingly Americans just aren't as impressed with Tim Hortons as Canadians so is Tim Hortons a good investment well ongoing legal battles with corporate public negativity increased costs and lower revenues premium locations mostly gone and corporate ownership with a history of heavy-handed behavior against franchisees so we don't make the decisions we just bring you the information thanks for watching please like And subscribe