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Shoppers Drug Mart’s $1-billion Franchisee Lawsuit

Shoppers Drug MartAngry Canadian pharmacists have officially launched a $1-billion class action lawsuit accusing their franchisor, Shoppers Drug Mart, of breach of franchise contract and unfairly seizing profits.

As was expected, a huge part of the dispute centres on how Shoppers has been handling the so-called "professional allowances" it collects from generic drug manufacturers on behalf of the associates. But the Statement of Claim also spells out some other bones of contention. The plaintiffs claim Shoppers charges more for advertising that it is supposed to. They also claim take issue with the “penalties” Shoppers allegedly charges franchises that fail to make annual profit targets.   Financial Post

Although the franchisees are yet to have a judge certify the suit as a class action, with mention of $1-Billion the franchisor is now paying attention.

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