Tim Hortons
Tim Hortons offers franchises to operate coffee shops selling coffee, baked goods, and other food items under their well-known brand. Known for its coffee and doughnuts, Tim Hortons operates in the quick-service restaurant sector.
About Tim Hortons
Tim Hortons Inc., known colloquially as Tim's, Timmies or Timmy's, is a Canadian multinational coffeehouse and restaurant chain with headquarters in Toronto; serving coffee, donuts, sandwiches, breakfast egg muffins and other fast-food items. It is Canada's largest quick-service restaurant chain, with 6,043 restaurants across 14 countries.
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Tim Hortons franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Tim Hortons franchise under a Franchise Agreement ranges from $243,500 to $2,177,500 for a Standard Shop and from $131,000 to $422,700 for a Non-Standard Shop [p.1]. This includes payments to the franchisor or an affiliate ranging from $100,000 to $470,000 for a Standard Shop and $75,000 to $225,000 for a Non-Standard Shop [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of shop. For Standard Shops, it is $50,000, while for Non-Standard Shops, it is $25,000. Additionally, there is a separate $20,000 fee for Co-Branded Shops. This fee is non-refundable and generally not waived or reduced except under rare circumstances. [p.25, p.39, p.485]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6.0% of weekly Gross Sales [p.602], and the advertising contribution is 4.0% of monthly Gross Sales [p.171]. Both these fees are non-refundable and uniformly imposed, though they may be reduced or waived in the Franchisor's sole business judgment [p.29].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the specific term length of the initial franchise agreement or the conditions for renewal.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. For franchises governed by Minnesota law, consent to the transfer cannot be unreasonably withheld [p.447]. However, this does not cover all scenarios, as there may be exceptions or additional requirements specified in state laws like Minnesota Statutes, Section 80C.14, which requires a minimum of 90 days' notice for termination and 180 days' notice for non-renewal [p.443].
On what grounds can the franchisor terminate the agreement?
According to [p.450] and [p.6], a franchisor can terminate the agreement on grounds such as the failure of the franchisee to comply with any lawful provision of the franchise agreement, provided the franchisee is given written notice and a reasonable opportunity (no more than 30 days) to cure the failure. Additionally, termination must not be without 'reasonable cause' as defined by the Virginia Retail Franchising Act or Virginia law [p.470].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD provides an estimate of additional funds needed for starting a Tim Hortons franchise, including costs like the Food Safety Modernization Fee, credit card processing fees, financial management software, POS systems, and other equipment. However, it does not specify net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to [p.224] and [p.502], the franchise granted is limited to the premises only, and there is no protection against competition from other Tim Hortons locations or affiliated brands. Similarly, [p.14] states that under a Development Agreement, you do not have exclusive rights within the designated market area.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs that include classroom and on-the-job training. The specific content and duration can vary based on the franchisee's background, but generally cover topics like recipes, food preparation procedures, and business policies. Ongoing support includes development of training materials and restaurant monitoring inspections [p.170].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were approximately 630 franchised Standard Shops open in the Tim Hortons franchise system. However, this number does not directly address closed or terminated outlets. The provided excerpts do not specify the exact number of franchised outlets that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one. However, they do not make representations about past or future financial performance, nor authorize their employees to do so [p.82]. Financial performance information can be included in the disclosure document only if there is a reasonable basis for it and it meets specific conditions outlined by the FTC [p.80].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and services approved by the franchisor, prepared using specified recipes and ingredients. You must purchase or lease all required items from suppliers approved by the franchisor, which may include the franchisor itself or its affiliates [p.44]. This includes food and beverages, fixtures, equipment, supplies, and other items used in your Franchised Restaurant [p.44].