The parent company of Tim Hortons says it has reached an agreement with the head of an unsanctioned franchisee group who had his four restaurants seized after he allegedly leaked sensitive corporate news to the media.

A Tim Hortons franchisee filed a $4-million lawsuit against the coffee-and-doughnut chain's parent company after he says it refused to renew a licence for one of his stores in bad faith.

RBI said in a statement that it vehemently disagrees with and denies all of the allegations.