TIM HORTONS Franchise Startup Cost, Profit and Information

Tim Hortons is Canada’s biggest fast-food restaurant chain. It was founded in the year 1964 and started as a donut and coffee shop. The company has surely evolved to meet up with consumers’ tastes and desires, with a menu list that comprises premium coffee, special teas, flavoured cappuccinos, fresh sandwiches and baked foods.

Tim Hortons focus on high quality fresh products and they offer great services to their teeming customers. This is the reaon why a lot of business persons want to have information on how much is a Tim Hortons franchise?


If you have made your home work perfect and have the desire to purchase the Tim Hortons Franchise opportunity, then you need to get yourself acquainted with all the information on the qualification the company looks out for in their prospective franchisee.

In order for both parties to achieve success and maximum satisfaction, the franchisee is expected to possess the adequate skills and commitment level, dedication, character, work ethic and strong people skills. These are the number of qualifications that Tim Hortons look out for in their applicants.

  • You must be able to meet with the initial investment required of a prospective franchisee and must also be willing to commit yourself to the business full time.
  • You must also be willing to divest of businesses that are in direct competition to Tim Hortons
  • You are also expected to have prior management experience. This is preferable in food service delivery and restaurant operations.
  • A prospective Tim Hortons franchisee is also expected to have good communication skills as well as sound leadership qualities.
  • Perfect understanding of how to recruit manage and train employees
  • You must be ready to work as partners with other personnel. You will both be hands-on operators and be willing to commit yourself to the demands and responsibilities of the restaurant full time.


The Tim Hortons franchise agreement gives permission to the franchisee to launch either of the following types of retail stores:

  1. STANDARD SHOP: This is a typical Tim Hortons store. It is involved in the production of merchandises, and also in the sales of a variety of baked products, which will include donuts, muffins, cookies, tarts, coffee and a range of other beverages. Standard shops can also involve in making a variety of soups, sandwiches and chill and most of the time includes a drive-through facility.
  2. NON-STANDARD/KIOSK: A kiosk, being versatile can be installed in any location and typically there are three types of kiosks.
  • A built-in kiosk
  • A full service cart
  • A self-serve kiosk

These kiosks are most of the times located within another facility especially malls, universities, hospitals, gas stations and even airports.

The built-in kiosk in constructed in such a way that it could accommodate any products setting but it is best aligned to suit a full menu line which will include baked goods, coffee, soups, sandwiches.

The full service cart can be designed to suit the location, size and consumer demand of the location where it is going to be sited. It has the capacity to accommodate one or more coffee units, soups, chilli, full baked goods and a sandwich station.

The self-serve kiosk is most of the time located within gas stations and grocery stores. It can offer a wide range of menu from coffee and a limited form of baked goods and sandwiches. It can as well occupy an approximate space size of six feet.


As it is with most franchises, since the franchisee is involving himself in a business that has a good success story, there will surely be a cost implication to buy into the franchise. What is the cost of a Tim Hortons franchise? You might want to ask. This will be dependent on a lot of factors. As a franchisee with Tim Hortons, you will be expected to pay a weekly royalty, marketing fee which is paid monthly and then a monthly rent.

You also need to get this at the back of your mind that the start up cost is quite high. For your information, Tim Hortons will be responsible for building the location, but the franchisee will cater for the startup equipment and the initial Tim Hortons franchise fee.


In order for you to open a Tim Hortons store, you will need a minimum of $60,000 in available capital and the high end of the investment required to startup your franchise will be in the tune of $665,000.

And as it is the norm in the franchise business, you will be expected to make an initial franchise fee of $35,000.

  • You will be expected to make a weekly Royalty fee of 4.55 of the gross sales for the period of the license, which is 10 years.
  • A monthly rental fee of 8.5% of the gross monthly sales.
  • You are also expected to make a monthly advertising fee of 4% of the gross sales.