Tim Hortons US Franchise Review

The largest publicly-traded "quick service" restaurant chain in Canada is also the 4th largest of its kind in North America. Tim Hortons Franchise US offers a diverse menu of fast service foods and beverages that includes all the usual suspects-premium coffee and doughnuts, flavored cappuccinos, soups and sandwiches, as well as a variety of baked goods. This doughnut idol doesn't get 5 stars for nothing. Tim Hortons offers the perfect blend of stability, sustainability, and outreach, and they are inviting interested franchisees to break new ground in the USA. Can you say "May We?"

Co-Founder Miles Gilbert “Tim” Horton was a national Hockey League Champion, who played 22 seasons with Toronto’s Maple leafs, plus three American leagues that include the New York Rangers, the Pittsburgh Penguins and the Buffalo Sabres. Tim Horton’s multiplicity helps them compete with icons like Starbucks, Dunkin’ Donuts Franchise, and Panera. New stores can be leased directly from Tim Hortons or purchased. In the event you elect to lease, the rent during the initial 10-year term runs 8 1/2% of monthly gross sales. This year, Tim Hortons will open its 500th store in Detroit, Michigan with former NBA star, Derrick Coleman, and his business partner, Walter Bender as the proud owners of this historic franchise.

A standard Tim Hortons US franchise package varies between $337,000 and $439,800 if leasing property from the franchise. Costs will be between $409,200 and $665,700 if not. The franchise fee is a modest $35,000 as compared with other franchises at this level. Other pre-opening expenses can run an additional $35,000 to $62,900. There is an unencumbered capital requirement (cash) between $146,600 to $247,200 that represents 30% of the total capital requirement. There is a seven to eight week training program at the National Training Center in Oakville, Ontario that includes a 10-day shift in your new store.

Tim Hortons Franchise offers the “Tim Card” that allows patrons access to a pre-paid, reloadable cash card they can use to pay for purchases at participating Tim Hortons stores. It can be used in the store or at the drive through, plus you can reload it conveniently on line. Buy a hot beverage and pick up a copy of the “Roll up the Rim” contest rules. Pull the tab off your coffee cup to win free food or another cup of Tim Hortons famous coffee. You could even win a car. Odds are closely monitored to remain at 1:9. This is direct advertising at its best.

• Competition - Tim Hortons is well positioned to compete with Goliaths like Dunkin Brands and other quick service giants.
• Renting vs. Purchase - You get a choice! Choosing to lease your location results in a manageable 8.5% of monthly gross sales. It's a nice option.
• Financing - 24-month short-term financing is available with your down payment of $20,000.

Cons

• Weekly Royalties - 4.5% Royalties are collected on a weekly basis so if like to reconcile your books monthly, forget it.

Tim Hortons Franchise Information

Business Established: 1964
Franchising Since: 1965
Franchise Fee: $35,000
Total Investment (US): $337,200 to $665,700