How Much Does a Tim Horton’s Franchise Cost?
Tim Horton’s coffee franchise opportunities are recognized innovative developments for franchisees wanting to establish quick service restaurants in North America. It is also one of the largest publicly traded restaurant chains based on market capitalization. Their premium coffee, freshly baked goods and a wide variety of selected home-style soups, specialty teas and other consumer-friendly food products have helped establish their reputation and name.
With a selection of full-service restaurant franchises, to custom-built kiosks as well as a varied range of non-traditional venues, Tim Horton’s locations are also concentrated on custom-built restaurants, able to compliment any site. At the same time, they maintaining the exceptional product quality, freshness and convenience expected by their customers.
First Coffee & Donuts – Now, A World of Food Items
The Tim Horton’s franchise chain began with a single location in Hamilton, Ontario [Canada] in 1964. The restaurant was named after one of its ownership partners, National Hockey league star Tim Horton. Tim Horton’s franchises originally sold only coffee and donuts, growing especially popular with its Canadian clientele after developing two specialty donuts, the Apple Fritter and the Dutchie. Items were continually added to the menu throughout the 1970s and 1980s – mostly treats but eventually soups and sandwiches. Even after Horton lost his life in a car accident in 1974, the franchise continued to grow exponentially under his name. Franchises were eventually opened in the United States as well as across Canada.
Coffee & Bakery Franchise
A Canadian fast-food restaurant known for coffee franchise opportunities and doughnuts, Tim Horton’s Inc. offers a delicious variety of coffee, teas and home-style soups and a lot more!
Versatile menus encourage consumers, considered their “guests” to visit the restaurants during the day, for breakfast, lunch and dinner, with the fastest growing category being QSR, late night snacking! The Tim Horton’s bakery with cafe and bake shops, have for many customers, become a regular part of their lives. The franchisor is proud that this brand loyalty factor has been developed and earned by partnerships with franchisees, otherwise known as “restaurant owners.”
There are more than 350 Tim Horton’s franchise locations in the United States, plus more than 2,750 stores in Canada. The company’s Canadian operation is said to be more than 95 percent franchise-owned, with a similar goal in mind for operations south of the border. In 1995, Tim Horton’s merged with Wendy’s International Inc., which is what helped spur growth in the United States. Nearly every U.S. Tim Horton’s franchisee is located east of the Mississippi, primarily in New York, Ohio, Pennsylvania, Massachusetts, and Michigan. The company has shown strong growth over recent years. The most current corporate figures (Q1 2009) show sales of $507 million, which is a 10 percent increase over the same period in 2008. Same-store sales grew at 3.4 percent in Canada and 3.2 percent in the United States. Twenty-eight new franchises opened in the first quarter of 2009, with 20 of them in Canada.
Tim Horton’s Franchise Information & Costs
The initial franchise fee for a Tim Horton’s franchise for sale is $35,000, and one’s total investment should expect to range from between $400,000 and $675,000. The franchise agreement states that at the franchisee must come to the table with a minimum of $144,000 in unencumbered funds, plus an additional $50,000 in operating capital must also be unencumbered. Part of the Tim Horton’s franchise information includes details on a Franchise Incentive Program, which provides short-term financing of equipment, store fixtures, furniture and indoor signage that gives franchise buyers a financial break. First, the franchisee commits a $20,000 down payment, with the remainder placed on a promissory note. For the first 24 months of operations, royalty payments are reduced from 4.5 percent to 2.5 percent of gross sales, and rent is cut by one-half percent (from 8.5 to 8.0). Then, at the end of the 24-month period, the note is due and payable. The expectation is that the franchise owner will set aside the money saved by the two trice cuts and use that accumulated nest egg to pay off the note. There is an additional advertising fee of four percent, but this remains the same throughout the life of the franchise agreement. A franchise agreement is typically in force for ten years, with an option to renew for an additional ten years. Franchisees do not receive a guarantee of territory exclusivity, but the parent company goes to great lengths to ensure that any new operation in the area will not affect sales at existing franchise locations.
Coffee Shop Franchise
Their recipe for success is regarded as being contributed to by the providing of superior products and service to their guests and communities by leadership, innovation and the valuable partnerships with . Established as being among the fastest developing coffee in the USA, this is a brand with a proven business model.
Tim Horton’s coffeeoffer entrepreneurs who want their own business to benefit from serving good coffee that brings customers back, time after time. It’s a drive-through window that is always busy!
The initial franchise fee for a Tim Horton’s first restaurant is:
- $35,000 excluding royalty payments
- A total franchise investment from $423,700
- A minimum of $144,000 of the cost being unencumbered
A full Canadian franchise is $430,000 to $480,000 (CDN $) excluding all applicable taxes and again, at least $144,000 of the franchise cost must be available in cash or liquid assets. In addition to $50,000 in unencumbered working capital, the balance can be financed by way of the chartered banks, once the franchise has been approved.
Inclusive with the franchise cost are:
- The right to use the trademarks and trade names
- A 7-week training program in Oakville, Ontario at Tim Horton’s UniversityThe supply of all equipment, furniture, display equipment and signage
- An opening crew for 2 weeks maximum, to assist in the opening of a Tim Horton’s restaurant
- Usage of Tim Horton’s manuals
- Head office personnel support program
Tim Horton’s locations in the United States at present number more than 850 restaurants in various states across the country.
The Tim Horton’s Training Centre in Oakville, Ontario, is the place where franchisees learn how to operate their business. Every new owner to buy a Tim Horton’s franchise undergoes eight weeks of training there, and the facility includes classrooms plus a fully operational store. There is special emphasis placed on proper food-handling and hygiene processes, plus maintenance of store equipment and employee relations. Once a franchisee has graduated from this program and is ready to open for business, the corporate office sends along a store-opening crew who remain on hand for a maximum of two weeks.
The is not granted an exclusive territory and could be competing with other . These can be outlets owned by Tim Horton’s, or other and various competitive brands controlled by Tim Horton’s.
The franchise agreement term is usually for 10 years, less one day, after the shop opens for business, except for kiosks. In their case, the terms are generally 5 years less one day. All shops except kiosks are renewable with 2 renewal terms of 5 years each, subject to contractual requirements. The renewals for a kiosk will depend on its location.