If you’re looking to start a business and love Tim Hortons, you might be asking, is Tim Hortons a franchise?
If so, keep reading to learn all you need to know about Tim Hortons and whether or not the company is a franchise!
Is Tim Hortons A Franchise In 2023?
Tim Hortons is a franchise whose locations are owned by individuals that want to run a Tim Hortons restaurant as of 2023. However, Tim Hortons has chain locations owned and operated by the company. This is customary in the fast-food industry as Tim Hortons charges a fee to license its name, image, and likeness.
Do you want to know more about Tim Hortons franchises, including the costs and potential revenue? If so, read on to learn what I’ve found out!
Are All Tim Hortons Locations Franchises?
Not all Tim Hortons locations are franchised ones. That said, Tim Hortons has an undisclosed number of company-owned locations globally.
How Do I Know If A Tim Hortons As A Franchise?
Tim Hortons does not identify which locations are corporate-owned and which are franchises. However, local franchises may identify the owners.
So, if you want to know whether a location is franchised or not, ask any employee; they should be able to tell you.
How Much Does It Cost To Open A Tim Hortons?
The franchise fee to open a Tim Hortons is between $25,000 and $50,000, depending on the size of the location.
However, this does not include most of the significant expenses of opening a Tim Hortons.
For example, there are costs associated with acquiring the land and constructing a building that the franchisee is responsible for.
Overall, Tim Hortons estimates construction costs to be between $1,017,600 and $1,370,500.
In addition to these startup costs, you will have royalty fees that are a percentage of sales. With that, Tim Hortons’ royalty fees vary between 4.5% and 6%.
Lastly, there’s an additional 4% that helps cover advertising costs.
How Much Do Tim Hortons Franchisees Make?
Tim Hortons does not disclose the revenue of its franchisees to the public. However, if you are interested in opening a franchise, estimates should be made available upon request.
Are Tim Hortons Franchises In The United States?
Yes, Tim Hortons franchises are available in the United States. But, Tim Hortons is only opening new locations in specific states.
Fortunately, you can see where Tim Hortons wants to open next on its website.
Can I Buy A Tim Hortons Franchise That Is Already Open?
You could opt to buy a Tim Hortons franchise from someone looking to sell. However, it is essential to keep in mind that the transaction would have to be approved by Tim Hortons.
What Are the Benefits Of Owning A Tim Hortons Franchise?
For many entrepreneurs, owning a franchise makes sense for several reasons. Most importantly, a franchised business can get help and support from the franchisor.
Also, brand recognition is another reason entrepreneurs buy into a franchise model. Moreover, much of the company’s marketing is done by the franchisor.
That said, this frees the franchise owner up to run the business.
Why Should You Not Buy A Tim Hortons Franchise?
Buying into a franchise is a complex decision that should not be taken lightly.
In the case of Tim Hortons, there are plenty of reasons you should consider it, but there are also some reasons why you shouldn’t.
Dumbing Down The Menu
Because you are stuck with the decisions made by the franchisor, you will be unable to change the menu.
Recently, Tim Hortons has come under fire since being acquired by its current owner for removing many fan favorites from the menu.
Lack Of Brand Ownership
Although many people see a franchise model as beneficial, others may not.
That said, this is because a franchise must use the branding and advertising of the franchisor, unlike in a privately owned business where the owner can make their own decisions.
Also, owning a business means the potential to build a brand. Of course, over time the company may grow to the point where it could be franchised.
However, all this opportunity is foregone when owning a franchise.
Location, Location, Location
Tim Hortons has traditionally performed well in Canada. However, it has been significantly less successful in the United States.
Therefore, before considering a Tim Hortons franchise, you need to understand the market you are opening in fully.
Who Owns Tim Hortons?
Tim Hortons is currently owned by Restaurant Brands International, a holding company for several businesses.
Further, other companies in its portfolio include Popeyes, Burger King, and Firehouse Subs.
To know more, you can also see our posts on whether or not Tim Hortons serves breakfast all day, is Tim Hortons Canadian, franchise statistics, and Tim Hortons dress code.
Tim Hortons is a franchise with thousands of locations across Canada and numerous others in the United States and overseas.
Also, Tim Hortons owns an undisclosed number of chain locations. Still, the company is always looking for new franchisees.
However, you should always perform due diligence when considering business ventures.