Tim Hortons Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000 to $50,000
Investment required
$124,000 - $2,138,000
Royalty fee
4.5% to 6%

Tim Hortons: Brewing Tradition and Innovation in the Global Coffee Scene

Established in 1964 in Hamilton, Canada, Tim Hortons has grown into a renowned Canadian restaurant chain with a global footprint spanning 15 countries. Headquartered in the vibrant city of Toronto, Tim Hortons is celebrated for its diverse menu featuring coffee, doughnuts, baked goods, soups, and sandwiches.

The remarkable journey of Tim Hortons began with the partnership of two visionaries: Canadian ice hockey defenseman Tim Horton and Montreal-born entrepreneur Jim Charade. Their shared dream took shape, and by 1965, Tim Hortons embarked on its franchising journey, paving the way for its iconic coffee shops to expand.

In 1995, Tim Hortons entered into a significant partnership with Wendy’s, a leading American fast-food chain. This decade-long collaboration left a lasting impact on the Canadian fast-food industry.

A new chapter began in 2014 when 3G Capital, a Brazilian private equity firm, acquired the Canadian fast-food chain.

Today, Tim Hortons is not just a staple in Canada but also a beloved brand internationally. It continually evolves, introducing new menu items and expanding its presence in diverse markets while staying true to its roots of providing quality food and beverages.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Tim Hortons offers 4 types of franchises:

Shop Type Estimated Range
Standard Shop: New Model $971,000 to $1,717,500
Standard Shop: Within Petro Locations $236,500 to $835,500
Standard Shop: Other $1,001,000 to $2,137,500
Non-Standard Shop $124,000 to $396,800

We are summarizing below the main costs associated with opening a Tim Hortons Standard Shop: Other franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Tim Hortons Standard Shop: Other

Type of Expenditure Amount
Initial Franchise Fee $50,000 - $50,000
Real Estate Taxes, Personal Property Taxes and CAM Charges $5,000 - $70,000
Equipment $300,000 - $410,000
Real Estate See Note 5
Planning and Development and Design Costs $20,000 - $100,000
Site Development Costs $280,000 - $500,000
Building Costs $290,000 - $864,000
Training $20,000 - $27,000
Start-up Supplies and Initial Inventory $7,000 - $30,000
Professional and License Fees $1,500 - $10,000
Insurance $2,500 - $21,500
Security Deposits $0 - $15,000
Additional Funds $25,000 - $40,000
TOTAL $1,001,000 - $2,137,500

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Number of units

2024
Franchised units

637

636

642

Company-owned units

0

0

0

Total units

637

636

642

Franchise Disclosure Document

Training 

Tim Hortons places a strong emphasis on preparing its franchisees with the essential skills and knowledge needed for successful outlet management. Here is an overview of their comprehensive training program:

Initial Training

Before launching their franchise, Tim Hortons franchisees must complete a thorough training program designed to immerse them in the brand's operations.

  • Classroom Training: Franchisees attend a session called "Welcome to Tim Hortons," a 1-hour orientation held in Columbus, Ohio, that introduces them to the fundamentals of the brand.
  • On-the-Job Training: This practical training also lasts 1 hour and is designed to give franchisees hands-on experience that complements the classroom instruction.

Training Supervision and Materials

To support their learning, franchisees receive a variety of instructional materials, including:

  • A detailed production manual
  • A series of online training modules
  • Written materials focused on specific subjects relevant to the initial training program

Territory Protection

Tim Hortons franchisees are permitted to operate their restaurant exclusively at the location approved by the company. If the location is not determined when the Franchise Agreement is signed, franchisees must select a site that aligns with Tim Hortons' site selection criteria within a designated site selection area.

It is important to note that franchisees do not have exclusive or protected rights within this site selection area. Additionally, franchisees may be granted a territory with limited protective rights, known as an "Area of Protection."

Throughout the duration of the Franchise Agreement, Tim Hortons guarantees not to establish or operate, nor permit any other person to establish or operate, a restaurant under the Proprietary Marks and System within this Area of Protection. This ensures a certain level of market exclusivity for franchisees within their designated area.

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