How Much Does a Tim Hortons Franchise Cost?

Do you want to be your own boss? Are you looking for a business opportunity with low startup costs and minimal ongoing fees? If so, then you’re in luck! It seems like Tim Hortons might be just what you need. So, I decided to give you some information about how much a Tim Hortons franchise costs and how much you can make as its owner.

Ready? Let’s jump in!

How Much Does a Tim Hortons Franchise Cost?

Unfortunately, there is no definitive answer to this question. The best I can do is – it depends. The cost of a Tim Hortons franchise depends on the specific location, the franchise fees, and the real estate taxes. As with everything, the Tim Hortons franchise cost in Ontario may be significantly higher than in other rural and even urban locations

Before talking about costs, potential franchisees will need to fill out the Tim Hortons franchise application for Canada. After this, you’ll receive an automated e-mail asking you to agree to receive future communications from the company. 

Startup Costs

First of all, you must ensure you have a net worth of at least $500,000 and unencumbered funds of $100,000 to open a Tim Hortons restaurant and pay mind to the upkeep of quality coffee and donuts. Depending on where you’re planning to open the restaurant, the cost of equipment, signs, licenses, permits, insurance, and uniforms might vary significantly. 

Accordingly, the franchise fee averages around $35,000, although it might be as low as $25,000 or as high as $50,000 and grants franchisees the licence to run their business under the brand’s name. Moreover, equipment costs range from $20,000 to $435,000, while real estate taxes can cost as low as $1,000 or as high as $70,000

Additionally, you’ll need to provide training for all your new employees, setting you back from $6,000 to $27,000, while insurance can cost from $2,000 to $21,500.

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Ongoing Costs

Tim Hortons chains in Canada have royalty fees from 4.5% to 6% of gross sales. Under limited circumstances, this percentage might be higher. Moreover, since restaurants of this calibre require vehement marketing, the advertising contribution accounts for approximately 4% of gross sales

Finally, owning a Tim Hortons in a less-than-ideal location might set you back more than expected for frequent repairs, lack of customers, and overall maintenance. Generally, the total investment comes around $298,650 to $1,394,000 for a Non-Standard Shop/Kiosk, and from $1,009,000 to $2,068,500 for a Standard Shop.

For a Tim Hortons franchise to begin operation, you’ll need around $695,500 to $1,837,400 to run a newly-built Co-Branded restaurant or from $135,300 to $219,600 for a renovated restaurant. 

Tim Hortons branched out into the American market in 1981. Although it’s the same company, American franchisees can expect to invest from $871,600 to $2,440,330.

How Much Does the Franchise Owner Make?

Unfortunately, franchise owner salaries can be drastically different depending on where the restaurant is located and how well it’s doing. Owning a Tim Hortons can make some franchisees a salary of $40,480 per year for newer chains, and upwards of $107,660 for successfully established locations. However, being in this business is extremely hard work!

How Much Does the Tim Hortons Make?

It’s no surprise that the Tim Hortons brand brings home the dough(nuts). The company has seen a balance in annual sales, circling the $6 billion mark since 2014. Therefore, in 2021, Tim Hortons amassed an incredible $6.526 billion in revenue from its 4,949 restaurants in Canada, the US, the UK, the Middle East, Thailand, China, and the Philippines. 

How Much Does a McDonald’s Franchise Cost?

To get a clear picture of whether a Tim Hortons franchise is the right move for you, I’ve included the costs of other popular franchises. If you’re not living under a rock, you know a thing or two about the McDonald’s franchise that boasts over 38,000 locations in over 100 countries and garnered $23,223 billion in annual revenue for 2021. 

Those numbers look promising, but how much does a  McDonald’s franchise cost in Canada? First, McDonald’s requires a minimum of $700,000 in unencumbered personal resources. The total investment necessary ranges from $1,008,000 to $2,214,080. Check out the official site for more detailed information. 

During the term of your franchise, you’ll need to pay:

  • Franchise fee: $45,000
  • Service fees: 4% of monthly gross sales
  • Rent: varies
  • Royalty fees: 4% of monthly gross sales
  • Advertising fee: 5% of monthly gross sales

How Much Does the Franchise Owner Make?

McDonald’s franchise owners make an average salary of $70,800 per year in Canada. However, depending on the location and the growth of your restaurant, you can rack in up to $150,000 yearly! Although this amount might not seem like much, considering the average McDonald’s restaurant takes in around $2.7 million a year, it’s definitely nothing to sneeze at. 

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How Much Does a Subway Franchise Cost?

If you’re looking for a cheaper option for a major fast-food restaurant, you might consider opening a Subway franchise in Canada. The Subway brand accounts for over 37,000 restaurants in more than 100 countries and territories. 

Now, let’s see how much a Subway franchise costs in Canada and what that price includes. According to Subway’s Franchise Capital Requirements, the estimated total investment for a Subway franchise ranges from $143,400 to $314,900. This price covers numerous expenses, including but not limited to:

  • Franchise fee: $15,000  
  • Rent: varies
  • Royalty fees: 8% of weekly gross sales
  • Advertising fee: 4.5% of weekly gross sales 

How Much Does the Franchise Owner Make?

Just like the previous franchises, a Subway franchisee’s income can differ due to numerous factors. However, with the average Subway restaurant generating about $400,000, the owner’s income averages approximately $41,000 annually. On the other hand, if you’re lucky enough to secure an attractive location with great sales, you can pocket from $80,000 to $150,000 yearly. 

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What’s the Best Franchise to Open in Canada?

So now you’ve read about three different franchises that can offer you an appealing return on investment. But what else is out there? Luckily, I combed through thousands of franchises and hand-picked the ones with the most favourable conditions to help you choose what to invest in next. 

Company Name Industry Franchise fee
Circle K Retail $25,000
Canada Bread Food $5,000 – $10,000
Pizza Pizza Food $30,000
Dairy Queen Food $45,000
KFC Food $45,000
Pet Valu  Pet $25,000

Finally, we’ll look at some of the cheapest franchises to open in Canada if you’re not ready to squander all your money on a chain

Company Name Industry Franchise fee
Jan-Pro Canada Cleaning $2,520
Coffee News Publication $11,000
JDI Cleaning Systems Cleaning From $3,000
PetMobile Pet None
Shell Mobility Canada Retail  None

Conclusion

There you have it! That’s everything you need to know about how much a Tim Hortons franchise costs. With the relatively low startup costs and the potential to make a decent profit, this might be the perfect business opportunity to kickstart your life as a franchise owner. Just be sure to do your research before making any decisions. 

Happy franchising! 

FAQ

How much is a Tim Hortons franchise?

To open a Tim Hortons franchise, franchisees must have at least $500,000. However, the minimum investment you should expect is around $290,000, while the maximum is approximately $1,906,300.

How much is Tim Hortons worth?

Tim Hortons is currently worth $4.5 billion.

ABOUT AUTHOR

Mila is an English literature student and a devoted animal's rights advocate. Despite her love for the written word, she's a keen observer of the everyday world and an excellent researcher with a bright and fresh perspective. When she's not doing research, you're most likely to find her out for a walk with her dog or binge-watching a TV show.

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