Tim Hortons Franchise – Costs, Fees & Earning Stats
Net Worth Requirement:
Units in Operation:
$959,000 - $2,162,500
637+ (US) & 3.5K+ (CA)
Tim Hortons is a doughnut and coffee brand that started in Canada in 1964. The company was founded by Tim Horton, who was a professional hockey player, and Jim Charade. The franchise quickly became popular, and today there are thousands of locations worldwide.
The franchise offers a wide variety of coffee and baked goods and is particularly known for its Timbits, bite-sized doughnut holes.
In this article, we will discuss the costs and fees associated with starting a Tim Hortons franchise, as well as the earning potential for franchisees.
Is Tim Horton’s a franchise?
The Tim Hortons restaurant franchise started as a single restaurant, but it eventually expanded to include locations across Canada and the United States. Tim Horton started franchising in 1964, the same year it was founded, and is currently owned by Restaurant Brands International, a Canadian holding company that also owns Burger King and Popeyes.
While Tim Hortons is best known for its coffee and doughnuts, the franchise also offers a variety of breakfast items, sandwiches, and baked goods. Tim Hortons is one of the most popular coffee brands in Canada.
Part of running a Tim Horton franchise depends on the leadership ability of the franchise owner to build a high-performance team with the training and support of the franchisor.
How many Tim Hortons locations are there?
The first Tim Hortons restaurant opened in Hamilton, Ontario in 1964. Since then, the company has experienced great success and has become one of the most popular quick-service restaurant brands in North America. Although the majority of Tim Hortons restaurants are located in Canada, the company has expanded its presence in the US market and as of the beginning of 2022, there were 637 locations.
There are now Tim Hortons franchises in countries all over the world, including the Middle East, and the United Kingdom. With its delicious food, popular beverages, and convenient locations, it’s no wonder that Tim Hortons is one of the most popular restaurant brands with over 4,900 restaurants worldwide.
How much is it to open a Tim Hortons franchise?
If you’re thinking about opening your own Tim Hortons franchise, you’ll need to make a significant investment.
Tim Hortons franchise cost or initial investment is between $959,000 and $2,162,500. This includes the initial franchise fee, the cost of leasing a property, the training program, the cost of equipment, franchise fees, signage, and other start-up costs.
Of course, this is just a rough estimate – the actual cost will depend on a number of factors, including the location of your restaurant and the size of your operation.
With the help of a Tim Hortons franchise, individuals can open their own businesses and enjoy the benefits of being part of a well-established brand.
Restaurant brands International does tend to be particular about how their brands are run and they have been successful with their model.
What is Tim Hortons franchise fee?
When you purchase a Tim Hortons franchise, you will be required to pay a franchise fee of $50,000. In addition, you will need to have a minimum net worth of $1,500,000 and liquid assets of at least $500,000.
Tim Hortons franchise owners have a choice between a standard 1000 -2400 sq. ft. typical Tim Hortons shop or a non-standard kiosk-type location.
Franchisees are also responsible for ongoing royalty fees, which are 4.5-6% of gross sales and a brand fund fee of 4% of gross sales.
How much do Tim Hortons owners make?
Many people dream of owning their own business, and for some, that dream includes opening a Tim Hortons franchise. But before taking the plunge, it’s important to consider the costs and potential profits.
Since Tim Hortons doesn’t disclose their financial information, except in their Financial Disclosure Document, it’s hard to get a true picture of the actual profit margins. Those margins will vary depending on a number of factors, such as the size of the store and the location.
Nevertheless, there is no doubt that owning a Tim Hortons franchise can be a good business venture if you are willing to put the time and effort into making it a success.
The Wolf’s Take 🍟
Tim Horton’s is a brand that’s had far more success in Canada (where it originated) than in the United States. That’s evident in the number of locations it has in the US, roughly 637, compared to over 3,500 locations in Canada. In the United States, Starbucks and Dunkin’ are the top coffee brands, amongst a host of other competitors.
While Tim Horton’s is still a very well-known brand, it is an expensive investment that maxes out at a little over two million dollars. The brand is also owned by Restaurant Brands International, a billion-dollar holding company of other popular franchises like Burger King and Popeye’s. It has very strict operating guidelines for franchise owners, and they will enforce penalties without a second thought if you are in breach of any of those guidelines.
While there is of course a ton of value to be had from the globally known franchises that Restaurant Brands International represents, many first-time franchise owners would likely be better off opting for a smaller, lower investment franchise to learn the ropes of business ownership.
If you’re looking for a successful and reliable franchise opportunity, Tim Hortons is a good choice. With over 4,900 restaurants worldwide, the brand is well-established and continues to grow. The initial investment can be significant, but with training and support, a franchisee can enjoy the benefits of being part of a well-recognized brand.
This is not investment advice. As always, look at the franchise disclosure document and do your own research and due diligence before investing.
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