The government's response is in regards to a list of grievances outlined in a letter from the Great White North Franchise Association, which represents about half of Canadian Tims franchisees.

New rules announced Tuesday in the United States will “test” the controversial takeover, though they won't likely derail it, experts said.

The White House administration is cracking down on American companies that seek to reincorporate overseas or in Canada to avoid paying U.S. taxes.