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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty + 4% ad fund + $450-$1,250/mo restaurant technology fee
Franchise Stats
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 to Other Fast Food Franchises
Key Insights
- Higher investment than 82% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
TIM HORTONS Current | $978K - $1.8M | $50K | 6.0% | 640 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| 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 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
Unlock Franchisee Contact Database
675 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.
Upgrade to Pro$199/year · Cancel anytime
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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a TIM HORTONS franchise?
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.
How much revenue does a TIM HORTONS franchise make?
According to the 2025 FDD, the average gross revenue for a TIM HORTONS franchise is $105,737. The median revenue is $101,194.
How much profit can you make with a TIM HORTONS franchise?
Based on the financial performance data in the FDD, estimated profit for a TIM HORTONS franchise ranges from $42,295 to $43,352 per year. Actual results vary based on location, management, and market conditions.
How many TIM HORTONS franchise locations are there?
As of the 2025 FDD, TIM HORTONS has 640 franchise locations. The company has been franchising since 1984.
Can you get an SBA loan for a TIM HORTONS franchise?
Yes, SBA loans are available for TIM HORTONS franchises. Historical data shows 31 SBA 7(a) loans have been approved for TIM HORTONS franchisees, with an average loan amount of $496,894. The historical default rate is 0.0%.
Is TIM HORTONS a good franchise to buy?
TIM HORTONS shows several positive indicators: established brand with 640+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in TIM HORTONS?
Talk to a franchise advisor to get personalized guidance and learn if TIM HORTONS is the right fit for you.
Talk to an Advisor