TIM HORTONS
Tim Hortons USA Inc. franchises restaurants specializing in coffee, non-alcoholic beverages, baked goods, soups, sandwiches, and related products under the Tim Hortons brand and system. They offer Franchise Agreements for Standard and Non-Standard Shops, Operator Agreements, Development Agreements, and limited Co-Branded options with Cold Stone Creamery, targeting quick-service consumers in various locations like standalone sites, drive-thrus, retail centers, and non-traditional venues. The business model involves initial franchise fees, ongoing royalties, and support for franchisees operating in compliance with brand standards in the competitive fast-food and coffee shop market.
Franchise Costs
6% royalty + 4% ad fund + $450-$1,250/mo restaurant technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 579 franchised Standard Shops open as of December 31, 2024 and reported at least 10 months of sales for 2024. A subset of 496 of these shops provided COGS and labor expense data.
* Calculated an estimated profit range based on the average monthly gross sales ($105,737), and the average and median COGS (29% average, 30% median) and labor expenses (30% average and median). The lower estimate uses the higher combined expense percentages (30% COGS + 30% Labor = 60%), resulting in $105,737 * (1 - 0.60) = $42,295. The higher estimate uses the lower combined expense percentages (29% COGS + 30% Labor = 59%), resulting in $105,737 * (1 - 0.59) = $43,352. It is explicitly stated in Note 4 of Item 19 that this calculation does not include all costs of sales, operating expenses, royalties, or other fees that must be deducted to reflect net income or profit.
Extracted Item 19 Section
How TIM HORTONS Compares
Key Insights
- Higher investment than 83% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
TIM HORTONS Current | $978K – $1.8M | $50K | 6.0% | 640 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for TIM HORTONS franchisees (2013 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
675 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
675 Contacts Available
Unlock all TIM HORTONS franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Primarily termination and non-renewal disputes, class actions alleging mismanagement of advertising funds and interference with franchisee association rights, claims of breach of good faith duties and failure to assist franchisees, and a franchisor-initiated action for unpaid fees.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a TIM HORTONS franchise ranges from $978,000 to $1,772,500. This includes a franchise fee of $50,000. Ongoing royalty fees are 6.0% of gross sales.
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