How To Start Tim Hortons Franchise In USA ?

Tim Hortons Franchise in USA Overview

Tim Hortons is a quick service Canada-based food and beverages company currently operating in America. This iconic Canadian brand is famous among entrepreneurs because of its success and brand recognition. They are popular for its coffee and doughnuts, plus its breakfast items,  baked goods, soups, and sandwiches are also a part of its menu. With over 5,000+ restaurants worldwide and 620+ locations in the USA, the company is expanding and it is no wonder why so many potential business owners are drawn towards Tim Hortons Franchise.

The company was founded in 1964 by Canadian hockey players Tim Horton and Jim Charade in Ontario and started franchising in the same year. Since then the company started flourished and at present has 5,000+ stores and is expanding into international markets with additional 42 franchised Locations in Latin America. Its U.S headquarters is located in Miami, Florida.

Tim Hortons Franchise Benefits

If you are interested in this brand then you can benefit from a brand heritage that is expert from decades in operating restaurants and serving guests. Further, they make an outlet successful with the support of Restaurant Brands International.

Location Type: they benefit franchisees with two types of stores, Standard and Non-Standard stores. So investors have a choice and can invest accordingly. 

Industry Leader: they are the largest QSR brand in Canada and are rapidly expanding in the U.S.

Success recipe: its innovative menu is the reason behind its success and keeps customers satisfied with a will of coming back for more.

Support: for the past six decades they have been providing successful support to its franchisees and have the best supportive franchising experience. 

New Markets: they are expanding into international markets with additional 42 franchised Locations in Latin America.

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Tim Hortons Franchise Requirements

If you’re interested in Tim Hortons franchise and want to open its franchise, then you need to keep in view its qualification procedure like its financial resources, an experience like passionate owners who have the ability to drive change and can help in building highly rated organizations, and owners who are committed with their profession.

  • Initial Franchise Fee $50,000
  • Cash Requirement $500,000 
  • Net Worth Requirement $1,500,000 
  • Royalty Fee 6%
  • Ad Royalty Fee 4%
  • Term of Agreement 20 years

Tim Hortons Franchise Cost

Tim Hortons Franchise cost varies according to its location type whether you are interested in a Standard shop or a Non-Standard shop further you need to know whether the Standard shop follows the new model or is a “within petro” location. If you are getting confused then let’s break it down for you and make it super easy.

  • Cost of a Standard Location that follows the new model, ranges from $1,044,000 to $1,441,500. 
  • Cost of a Standard Location that follows the  “within petro” model meaning, (a shop in partnership with a gas station) ranges from $246,500 to $641,500.
  • Cost of a Non-Standard Location ranges from $94,000 to $270,000.

This is the franchise cost system of Tim Hortons, below mentioned is the Expenditure Types, low to high amount range of

Standard New Model Location.
  • Initial Franchise Fee $50,000 to $50,000.
  • Real Estate, Taxes, Personal Property Taxes, and CAM Charges $5,000 $70,000
  • Equipment $337,000 to $375,000
  • Planning and Development and Design Costs $20,000 to $10,000
  • Site Development Costs $100,000 to $230,000
  • Building Costs $476,000 to $504,000
  • Training $20,000 to $27,000
  • Start-up Supplies and Initial Inventory $7,000 to $14,000
  • Professional and License Fees $1,500 to $10,000
  • Insurance $2,500 to $21,500
  • Security Deposits $0 to $15,000
  • Additional Funds $25,000 to$25,000
  • Total $1,044,000 to $1,441,500
Standard Location within Petro Shop 
  • Initial Franchise Fee $50,000 to $50,000
  • Real Estate, Taxes, Personal Property Taxes, and CAM Charges $1,000 to $10,000
  • Equipment $60,000 to $216,000
  • Planning and Development and Design Costs $15,000 to $37,000
  • Site Development Costs $0 to $0
  • Building Costs $75,000 to $230,000
  • Training $20,000 to $27,000
  • Start-up Supplies and Initial Inventory $7,000 to $14,000
  • Professional and License Fees $1,500 to $10,000
  • Insurance $2,000 to $7,500
  • Security Deposits $0 to $15,000
  • Additional Funds $15,000 to $25,000
  • Total $246,500 to $641,500

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Tim Hortons Franchise Profit

Tim Hortons is a well-established profitable business whose stores are growing in America at a constant speed. It’s a growing company, its gross sales are increasing reflecting it as a successful and worth investigating industry.

  • From its 4,949 locations the company was able to generate an incredible $6.526 billion in revenue. 
  • Its brand value is $4 and has a 5 billion dollar market. 
  • Its owners of Newer chains make around $40,480 per year and upwardly successful owners can make $107,660. 
  • It’s estimated that Tim Hortons Franchise can make an average of $1,054,296 in annual Gross Sales. 
  • At an average of 15% profit margin it will take 11 years for Tim Hortons franchise owners to recoup its investment.
  • At an average of 20% profit margin it will take 8 years for Tim Hortons franchise owners to recoup its investment. 

Tim Hortons Franchise Menu

Its menu makes it a favorite spot for food & beverage lovers. Its renowned coffee flavors and bakery makes it unique from every other company. Its menu has been broken down into the following categories like Breakfast, Baked Goods, Hot Beverages, and Cold Beverages. includes breakfast, baked goods, hot beverages, and cold beverages.

Breakfast: English Muffin Breakfast Sandwich, Croissant Breakfast Sandwich, Bangle Breakfast Sandwich, Bacon Everything Bagel, Bagel B.E.L.T, Grilled Breakfast Wrap, Breakfast Wrap Snacked, Hashbrown, Biscuit Breakfast Sandwich, Grilled Farmer’s Breakfast Wrap, Loaded Breakfast Wrap (Double Protein), Greek Yogurt Parfait Vanilla, Homestyle Oatmeal.

Baked Goods: Donuts, Timbits, Chocolate Chunk Cookie, Muffins, Bagels, Croissant, Donut Multi Pack, Timbits Multi Pack, Cookie Multi Pack, Muffin Multi Pack, Bagel Multi Pack, Dream Donuts.

Hot Beverages: Original Blend Coffee, Dark Roast Coffee, Decaf Coffee, Latte, Cappuccino, Caramel Macchiato, Americano, Hot Chocolate, White Hot Chocolate, Coffee Mocha, Specialty Tea, Espresso Shot Single, Espresso Shot Double, French Vanilla, Hot Chocolate Peppermint.

Cold Beverages: Iced Capp, Iced Capp Light, Iced Capp Supreme, Iced Coffee, Iced Latte, Tim Shake, Iced Tea, Frozen Lemonade, White Milk Carton, Chocolate Milk Carton, Spring Water Bottle, Iced Lemonade, Soda, Cold Brew, Vanilla Cream Cold Brew, Peppermint Original Cold Brew.

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Tim Hortons Franchise Locations

There are 5,000+ Tim Hortons Franchise Locations and are serving internationally in Canada, China, Egypt, India,  Kuwait, Mexico, Oman, Philippines, Qatar, Saudi Arabia, Spain, Thailand, United Arab Emirates, United Kingdom, and with 620+ locations in the United States. In the USA its most number of locations are found in the following areas.

  • New York with 235 locations for every 82,783 people, which is about 38% of its total locations. 
  • Michigan has 204 locations for every 48,956 people, which is about 33% of its total locations.
  • Ohio has 133 locations for every 87,887 people, which is about 21% of its total locations.

Tim Hortons Franchise Application Process

This is a step by step guide if you are ready to apply for its franchise. Know about its qualification procedure and then go to its apply section. 

  • Apply Online: you need to fill your basic details online and let them know where you want to operate. Further you need to let them know why you would like to operate Tim Hortons. 
  • Discovery Cell: after you submit your basic details, you will get a call from one of its team members, receive and sign an NDA.
  • Application Review: review its FDD, its financial business plan, background and credit check.
  • In-Person Interview: you will go for an in-person interview with them, and can meet up with its franchising team.
  • Final Approval: if you will be approved successfully using its agreement, begin with its franchisee training. For approval select and submit the site. 

Conclusion

These are the basic details regarding Tim Hortons franchise in the USA, candidates who are interested in this business can start up with any of its store types. Its industry has potential to make profile opportunities and this is a perfect business to start your successful Career. 

This quick service company has multiple funding sources available and has the support of Restaurant Brands International. Make a healthy decision and get started with Tim Hortons.

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