Tim Hortons Franchise FDD, Profits & Costs
Tim Hortons, founded in 1964 in Hamilton, Ontario, by hockey legend Tim Horton and Ron Joyce, is a staple in North American quick-service restaurants. Famous for its coffee and doughnuts, the menu has since expanded to include a variety of beverages, baked goods, and quick meals.
The franchise stands out with its community focus, including initiatives like Tim Hortons Foundation Camps and national sponsorship programs that support local communities and sustainability.
Tim Hortons began franchising in 1967. After Tim Horton’s death in 1974, Ron Joyce led the chain’s rapid expansion. Now part of Restaurant Brands International, Tim Hortons has thousands of locations across North America. Its headquarters in Oakville, Ontario, reflects its strong Canadian roots.
Initial Investment
How much does it cost to start a Tim Hortons franchise? It costs on average between $148,000 - $3,313,000 to start a Tim Hortons franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location and whether the franchisee chooses to lease or purchase the property. Indeed, Tim Hortons offers 4 types of franchises:
Item 7 of the Tim Hortons FDD separately lists five single-unit shop or operating options: Standard Shop: New Model (Franchise Agreement), Standard Shop: Within Petro Locations (Franchise Agreement), Standard Shop: Other (Franchise Agreement), Non-Standard Shop (Franchise Agreement), and Operator Agreement.
| Shop Format / Program | Initial Investment Range |
|---|---|
| Standard Shop: New Model (Franchise Agreement) | $988,000 – $3,312,500 |
| Standard Shop: Within Petro Locations (Franchise Agreement) | $427,500 – $1,573,500 |
| Standard Shop: Other (Franchise Agreement) | $913,000 – $3,013,500 |
| Non-Standard Shop (Franchise Agreement) | $148,000 – $802,700 |
| Operator Agreement | $60,150 – $217,500 |
The detailed cost breakdown below covers the Standard Shop: New Model (Franchise Agreement), the first option presented in Item 7.
Additional information regarding these estimated costs is provided in the Franchise Disclosure Document (Item 7).
| Type of Expenditures | Estimated Range |
|---|---|
| Initial Franchise Fee | $50,000 – $50,000 |
| Real Estate Taxes, Personal Property Taxes and CAM Charges | $35,000 – $100,000 |
| Equipment | $335,000 – $500,000 |
| Real Estate | |
| Planning and Development and Design Costs | $20,000 – $275,000 |
| Site Development Costs | $100,000 – $1,200,000 |
| Building Costs | $385,000 – $1,020,000 |
| Training | $20,000 – $50,000 |
| Start-up Supplies and Initial Inventory | $7,000 – $14,000 |
| Professional and License Fees | $8,500 – $25,000 |
| Insurance | $2,500 – $21,500 |
| Security Deposits | $0 – $15,000 |
| Additional Funds | $25,000 – $42,000 |
| Total Estimated Initial Investment | $988,000 – $3,312,500 |
Average Revenue (AUV)
How much revenue can you make with a Keke’s Breakfast Cafe franchise? A Tim Hortons franchised location makes on average $1,237,000 in revenue (AUV) per year.
| Year | Monthly Revenue | AUV | Growth |
|---|---|---|---|
| 2023 | $96,388 | $1,156,656 | – |
| 2024 | $101,194 | $1,214,328 | 4.99% |
| 2025 | $103,122 | $1,237,464 | 1.91% |
Tim Hortons Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Tim Hortons franchise?
Most franchise buyers in Tim Hortons’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Tim Hortons franchise investment?
Payback periods for franchises in Tim Hortons’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Tim Hortons?
Tim Hortons is owned by Restaurant Brands International (RBI), a multinational fast-food holding company. RBI was formed in 2014 after a merger between Tim Hortons and Burger King, with 3G Capital, a Brazilian-American investment firm, holding a significant stake in RBI. The company also owns other major brands, including Burger King and Popeyes.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
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Research Tim Hortons Franchises franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Tim Hortons Franchises FDD Review.
