---
title: "Watch Out Tim Hortons — Dunkin’ Returns to Canada 8 Years After a $16.4 Lawsuit Forced Them to Leave the Country"
url: https://burnaze.com/article/78494e06-390e-439d-8409-6ce7b502da21
source: "Entrepreneur Franchise"
original_url: https://www.entrepreneur.com/buying-a-franchise/watch-out-tim-hortons-dunkin-returns-to-canada-after-8-years
author: "Jonathan Small"
category: "Coffee & tea"
industry: "Restaurants"
segment: "Coffee & tea"
topics: ["Regulation & legal"]
published: 2026-05-15T15:00:00.000Z
modified: 2026-10-31T13:16:39.808Z
image: https://www.entrepreneur.com/wp-content/uploads/sites/2/2026/05/dunkin-canada-0526_g2259752657.jpg
---

# Watch Out Tim Hortons — Dunkin’ Returns to Canada 8 Years After a $16.4 Lawsuit Forced Them to Leave the Country

**TL;DR:** Dunkin' is returning to Canada through a master franchise agreement with Foodtastic and Inspire Brands, targeting hundreds of new locations after exiting the country in 2018. Foodtastic plans to open 600 to 700 locations across Canada, with a focus on younger customers and healthier fare.

*By Jonathan Small, originally published in Entrepreneur Franchise on 2026-05-15. [Read the original](https://www.entrepreneur.com/buying-a-franchise/watch-out-tim-hortons-dunkin-returns-to-canada-after-8-years).*

## Story

The coffee chain, which fled Canada in 2018 after losing a $16.4 million lawsuit, is betting on younger customers for its second chance.

Dunkin’ wants to conquer Canada. The franchise is staging a comeback through a master franchising deal between Foodtastic and parent company Inspire Brands, with the first location expected to open in late 2026 or early 2027.

The Montreal-based restaurant operator Foodtastic plans to blanket Quebec and Ontario first, with audacious goals of opening 600 to 700 locations across Canada, including nearly 200 in Quebec.

The chain’s last Canadian chapter was a disaster. Dunkin’ limped out of the market in September 2018 after a $16.4 million civil court judgment awarded to Quebec franchisees who successfully sued for failing to adequately support and promote the brand against competitors like Tim Hortons.

This time, Foodtastic CEO Peter Mammas says the strategy zeroes in on the 13-to-35 crowd with healthier fare and a heavy focus on trendy iced beverages that have defined the brand since it axed “Donuts” from its name in 2018.

Foodtastic runs over 1,200 locations across Canada, spanning brands including Second Cup, Milestones, Freshii, Pita Pit, and Quesada. The company expects to ramp up to opening one cafe per week within a year, cranking out roughly 50 locations annually.

## Entities

- Restaurants (sector)
- Entrepreneur (publication)
- brand expansion (topic)
- Dunkin' Brands (company)
- canada (location)
- Inspire Brands (company)
- master franchise agreement (topic)
- Tim Hortons (company)
- canadian market (topic)
- Ontario (location)
- coffee chain (topic)
- Freshii (company)

---
Originally reported by Jonathan Small, Entrepreneur Franchise (https://www.entrepreneur.com/buying-a-franchise/watch-out-tim-hortons-dunkin-returns-to-canada-after-8-years). Summarized by Burnaze (https://burnaze.com/article/78494e06-390e-439d-8409-6ce7b502da21).