About Tim Hortons Franchise
Tim Hortons is one of North America's most iconic quick service restaurant brands, known for its coffee, baked goods, and breakfast offerings.
Part of Restaurant Brands International Limited Partnership, Tim Hortons has been franchising since 1984 and has grown into a household name with thousands of locations worldwide.
The menu includes premium brewed coffee, espresso drinks, donuts, Timbits, sandwiches, and soups.
Tim Hortons Franchise Cost & Fees
Minimum Investment
$247K
Average Investment
$1.2M
Maximum Investment
$2.2M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 to $50,000, depending on shop type | One-time payment upon signing |
| Royalty Fee | 4.5% to 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales | National brand fund |
| Total Investment Range | $246,500 – $2,162,500 | Includes build-out, inventory, working capital |
The investment range of $247K–$2.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% to 6% of Gross Sales) and marketing fee (4% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Real Estate Taxes, Personal Property Taxes and CAM Charges | $5,000 | $70,000 |
| Equipment | $337,000 | $375,000 |
| Real Estate | $0 | $0 |
| Planning and Development and Design Costs | $20,000 | $100,000 |
| Site Development Costs | $100,000 | $230,000 |
| Building Costs | $476,000 | $504,000 |
| Training | $20,000 | $27,000 |
| Start-up Supplies and Initial Inventory | $7,000 | $14,000 |
| Professional and License Fees | $1,500 | $10,000 |
| Insurance | $2,500 | $21,500 |
| Security Deposits | $0 | $15,000 |
| Additional Funds | $25,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 5% of the full purchase price |
| Technology Fee | $450 to $1,050 per month |
| Audit Fee | Costs of audit plus interest |
| Reorganization of your business | Our legal and administrative expenses incurred in processing changes resulting from the reorganization of your business structure |
| Approving Suppliers Requested by You | Varies |
| Inspection costs and expenses | Varies |
| Products, Supplies, Equipment | Varies |
| Tim Horton Children’s Foundation | Varies |
| Background Check Fee | $280 - $15,000 |
| Brand Damage Fee | Amount of the next installment of initial franchise fees you were required to pay to us under the Area Development Agreement before the date of termination |
| Maintaining Shop premises in good repair | Varies |
| Refurbishing Shop | Varies |
| Lease for Franchised Restaurant premises | Varies, but between 7% to 8.5% of Gross Sales for a Standard Shop; and up to 13% of Gross Sales for Non-Standard Shops. Must also pay flow through charges such as CAM, insurance, property taxes, and our administrative expenses of billing. |
| Taxes | Amount imposed on us by federal, state, and local tax authorities on any fees or other amounts payable by you to us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 1 to 6 weeks (20 business days) |
| Classroom Training | 15.5 |
| On-the-Job Training | 179.0 |
| Training Location | Columbus, Ohio |
| Additional Training | The franchisor makes additional training programs available as determined during the term of the Franchise Agreement or Operator Agreement. These programs, including instructors and workbooks, are provided without charge, except for a materials fee not exceeding $1,000 per person. Franchisees are responsible for all travel, lodging, and living expenses incurred while attending. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies by designated market area |
| Description | The franchisor does not grant an exclusive or protected area or territory. The franchisor and its affiliates may establish or license other outlets under the same or different Tim Hortons Trademarks or systems, regardless of proximity or impact on the franchisee's location. They can also sell or distribute products through various channels (e.g., delivery units, kiosks, grocery stores, internet) without providing the franchisee any rights or compensation in their market. Franchisees may face competition from other franchisees, company-owned outlets, or competitive brands controlled by the franchisor's affiliates. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years for Standard Shops, 5-10 years for Non-Standard Shops |
| Transfer Fee | 5% of such sale or transfer price |
| Transfer Conditions | Transfer requires compliance with all Franchise Agreement provisions, payment of all money owed, execution of a general release, transferee meeting qualifications (including no competing business interests), signing a new franchise agreement, completing training, payment of the transfer fee, franchisor approval of the sales price, and providing information for evaluation of the business and proposed transfer terms. |
| Termination for Cause | The franchisor can terminate for various curable defaults (e.g., failure to pay amounts due, non-compliance with health standards, selling unapproved products, failure to maintain premises) after a specified cure period (e.g., 3-30 days). Non-curable defaults (e.g., bankruptcy, abandonment of business, material misrepresentation, criminal conduct, repeated defaults) allow immediate termination without opportunity to cure. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term of the franchise, the franchisee (and owners/immediate family) are prohibited from owning, maintaining, engaging in, or having an interest in any business that offers similar products/services to a Tim Hortons Shop. After termination or expiration, a 2-year prohibition applies to diverting customers or engaging in a similar business (i) at the former shop premises, (ii) within a 5-mile radius of the former shop, or (iii) within a 2-mile radius of any other Tim Hortons Shop operated by the franchisor or its franchisees at the time of termination/expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A "managing owner" must be designated with authority to bind the franchisee and direct compliance with agreements. This individual, or a designated and approved managing director, must operate the Tim Hortons Shop on a full-time basis and reside within 30 miles of the shop or another operated shop. Delegation of this responsibility is only permitted in special circumstances with prior approval. For multiple shops, a full-time general manager and at least one restaurant manager (who completes initial training within 6 months) are required for direct supervision. Business entities are not required to have managers with equity interest. Covenants regarding confidentiality and non-competition are required from certain individuals associated with the franchisee. |
| Required Suppliers | Franchisees must purchase or lease all products, fixtures, furnishings, building components, equipment (including POS and ordering systems), decor, signs, paper goods, containers, packaging, supplies, smallwares, utensils, services (including project management), product ingredients, and insurance from approved suppliers. The franchisor or its affiliates may be designated as the sole supplier for any item, and a significant percentage of items may be restricted to a single supplier. |
| Supply Restrictions | All or a significant percentage of the Items used or sold by your Franchised Restaurant may be restricted to a single supplier. The franchisor or its affiliates may be the sole supplier for certain items. Suppliers must meet franchisor specifications, agree to Master Terms and Conditions, possess adequate quality controls and capacity, and provide evidence of satisfactory insurance coverage. Approval of new suppliers can be denied if they do not meet specifications or competitive standards. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates may derive revenues from the purchase of items from them and other approved suppliers, including charging a reasonable mark-up. For the fiscal year ended December 31, 2021, THUSA had $4,327,296 (approximately 11% of its revenues) from franchisee and Operator purchases/leases. Affiliates like Tim Donut U.S. Limited, Inc., The TDL Group Corp., and THD Coffee Co. also had significant revenues from franchisee and Operator purchases/leases. The franchisor and its affiliates also receive rebates, commissions, allowances, and other benefits from various suppliers, including third-party distributors, and retain these benefits. Sponsorship revenue from suppliers for the annual franchise convention is also received. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any affiliate offers financing to franchisees or arranges for financing from other sources. They do not guarantee franchisee notes, leases, or obligations to third parties. |
Tim Hortons Franchise Earnings — Item 19
Average Revenue
$99K
Median Revenue
$94K
Revenue Range
$4K – $304K
Sample Size
549 units
Past financial performance does not guarantee future results. Individual results will vary.
Tim Hortons Litigation & Risk Flags
5 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tim Hortons System Growth
Total Units
637
Franchised
637
Company-Owned
0
Tim Hortons currently operates 637 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 44 | 115 | 656 |
| 2020 | 11 | 34 | 633 |
| 2021 | 14 | 10 | 637 |
Transfers: 36 | Closures: 10
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$37.8M
Total Assets
$1383.7M
Audited by KPMG LLP for year ending December 31.
Tim Hortons Franchise — FAQ
The total investment to open a Tim Hortons franchise ranges from $246,500 to $2,162,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000 to $50,000, depending on shop type. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tim Hortons charges a royalty fee of 4.5% to 6% of Gross Sales of gross sales, plus a 4% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tim Hortons Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Tim Hortons to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Tim Hortons franchise owners report average revenue of $99K and median revenue of $94K. This is based on a sample of 549 units. Past performance does not guarantee future results.
Tim Hortons has been franchising since 1984. The FDD shows an investment range of $246,500-$2,162,500, a 4.5% to 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 5 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 to $50,000, depending on shop type and the total investment ranges from $246,500 to $2,162,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Tim Hortons and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tim Hortons or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com