Looking for a business to franchise but not sure what and how? Tim Hortons, a fast-food chain that specializes in coffee and doughnuts, is an excellent choice. But how much does a Tim Hortons franchise cost? It is one of the leading quick-service restaurant chains in the U.S. in 2019. In the same year, the brand generated approximately 3.34 billion U.S. dollars in revenues.
Founded in Canada in 1964 by hockey players Tim Horton and Jim Charade, it has reached global success with 4,932 restaurants the world over. In August of 2014, it went under its parent company, Burger King Corporation, with Dunkin’ Donuts as its closest competition.
How Much Does A Tim Hortons Franchise Cost?
First and foremost, a Tim Hortons franchisee must have a net worth of about $700,000. You will need an estimated investment from $680,900 to $1,906,300. You will be required to pay an initial franchise fee of $35,000, which gives you the license to use the Tim Hortons name.
There is a royalty fee of 4.5% to 6% and an advertising fee of 4% of your gross sales. The term agreement is for ten years and starts when the franchise agreement is signed by both the franchisee and the franchisor. This usually comes with options to renew for up to 10 more years.
Breakdown of the Costs
Estimated Initial Investment
Name of Fee
Low
High
Initial Franchise Fee
$15,000
$50,000
Real Estate Taxes, Personal Property Taxes, and Common Area Maintenance Charges
$1,000
$22,000
Equipment
$75,000
$435,000
Real Estate
Varies
Varies
Planning and Development and Design Costs
$17,500
$100,000
Site Development Costs
$0
$500,000
Building Costs
$150,000
$800,000
Training
$7,000
$15,000
Start-up Supplies and Initial Inventory
$1,000
$30,000
Professional and License Fees
$1,500
$10,000
Development Assistance Fees
$5,000
$25,000
Insurance
$150
$21,500
Initial Advertising and Promotion
$500
$5,000
Security Deposits
$0
$15,000
Additional Funds
$25,000
$40,000
ESTIMATED TOTAL*
$298,650
$2,068,500
This estimated initial investment ranges from a new “Non-Standard Shop/Kiosk” up to a new “Standard Shop.” The Non-Standard can be installed in almost any type of area or location. It can be a built-in kiosk, a full-service cart, or a double drive-thru. It is generally located within retails stores, gas stations, universities, and the likes.
On the other hand, the Standard Shop produces its own coffee, baked goods, soups, and sandwiches, among many others. It can seat customers in an area of 1,000 to 2,300 square feet and typically has a drive-thru facility.
How to Get Your Tim Hortons Franchise
Once you have the adequate capitalization and considered the costs, you have to assess your business strengths and experience. Evaluate the market availability for a Tim Hortons in your chosen location.
Go to the franchising page of Tim Hortons to apply. Complete the form and send it to franchise_requests@timhortons.com with the subject title: THUS Franchise Application. You’ll receive an email notification of the receipt of your application.
The Tim Hortons franchise team will review your application. They will then do the necessary financial and background checks. You will receive your application approval once proven that you meet their requirements. For other franchising ideas, check out FranchiseHow to learn more.
