Tim Hortons Franchise Cost: Investment & SBA Data

A Tim Hortons franchise costs $988K to $3.3M to open in the United States in 2026, with a $50,000 franchise fee — among the highest in QSR — and a 4.5% ongoing royalty. Tim Hortons does not publicly disclose average gross sales in its U.S. FDD. Across 49 SBA 7(a) loans, the brand shows a 0.0% charge-off rate, but that sample is far too small to draw meaningful conclusions. The brand operates 693 U.S. locations and is owned by Restaurant Brands International, the same parent company behind Burger King, Popeyes, and Firehouse Subs.

A Canadian icon with an American identity crisis

Tim Hortons is the largest quick-service restaurant chain in Canada, with a Canadian footprint far larger than its U.S. one. Canadians don't just drink Tim Hortons coffee; it's woven into the national identity. "Double-double" (two cream, two sugar) is part of the Canadian lexicon. Hockey rinks, road trips, and Tim Hortons are inseparable in the Canadian imagination.

None of that transfers to the United States. With only 693 U.S. locations, Tim Hortons has less brand awareness than regional chains in most American markets. The U.S. expansion has been slow, uneven, and concentrated in the Northeast and upper Midwest — areas with proximity to the Canadian border and existing brand familiarity. In markets like Texas, California, or Florida, most consumers have never heard of Tim Hortons, let alone developed the kind of loyalty the brand commands in Canada.

Investment breakdown

The massive investment range reflects the variety of formats Tim Hortons offers in the U.S. market. Selected Item 7 lines (construction, signage, inventory and pre-opening costs make up the rest):

The range runs from $988K to $3.3M, depending on format and site. For comparison, a Dunkin' build-out runs $532K – $1.8M and a Burger King $2.2M – $3.3M. That $50,000 franchise fee is worth noting too; Dunkin' charges $40,000.

The revenue question mark

Tim Hortons does not disclose average gross sales in its U.S. FDD Item 19. This is a significant red flag for prospective franchisees. When a franchisor with 693 U.S. locations chooses not to share financial performance data, it usually means the numbers aren't impressive enough to attract new buyers.

For comparison, here is what direct competitors disclose:

Without an Item 19 figure, any revenue estimate you hear for U.S. Tim Hortons locations is unconfirmed by the company, and Canadian performance is no guide: the Canadian market dynamics are completely different from the U.S. market.

The RBI factor

Tim Hortons is owned by Restaurant Brands International, the same conglomerate that operates Burger King, Popeyes, and Firehouse Subs. RBI's corporate headquarters is in Toronto, but the holding company is actually domiciled in Florida for tax purposes — hence Tim Hortons' "FL" HQ designation in franchise databases.

RBI's track record with franchise operations is mixed. Burger King franchisees have publicly criticized the company for margin pressures and mandatory remodels. Popeyes operators have reported similar concerns. Tim Hortons franchisees in Canada actually formed a renegade franchisee association in 2017 to push back against corporate policies, leading to lawsuits and bitter public disputes. Whether U.S. franchisees face the same dynamic is worth investigating before you commit capital. Our franchisee contacts tool lets you reach verified Tim Hortons operators directly.

SBA data: insufficient sample

With only 49 SBA 7(a) loans on file and a 0.0% charge-off rate, the SBA data for Tim Hortons is essentially meaningless for risk assessment. For comparison, Dunkin' has 1,341 SBA loans and McDonald's has just 24. The 49-loan sample for Tim Hortons reflects the limited U.S. franchise activity and possibly the brand's relatively recent U.S. expansion push.

The Verdict Score of 88 out of 100 (higher is better) should be interpreted cautiously given the thin SBA data behind it. Check the raw numbers on our SBA explorer.

Ongoing fees

• Royalty: 4.5% of gross sales (the filing's terms: 4.5% to 6% of Gross Sales). That is lower than Dunkin's 5.9%.
• Advertising: 4.0% of gross sales contributed to the national and regional advertising fund.
• Technology fee: A monthly fee for POS systems, digital ordering, and loyalty program infrastructure.

The combined royalty and advertising load of 8.5% is standard for QSR, but remember — those percentages are applied to unknown (undisclosed) revenue. At an illustrative $1M in annual sales, the total fee burden would be roughly $85K per year.

Is a Tim Hortons franchise worth it in the U.S.?

Tim Hortons faces a fundamental brand awareness problem in most U.S. markets. Unlike Dunkin' — which has decades of American consumer loyalty — Tim Hortons is starting from near-zero brand equity outside of border-adjacent regions. The undisclosed revenue data is a concern. The $50K franchise fee is steep. And the RBI corporate parent has a mixed reputation among its franchise operators.

The 4.5% royalty rate is attractive, and the investment range offers flexibility. If you're in a market with existing Tim Hortons brand familiarity (upstate New York, Michigan, Ohio), the economics may work. But in markets where you'd essentially be introducing an unknown brand against entrenched competitors like Dunkin' and Starbucks, the risk-reward calculus tilts against you. Compare your options on our comparison tool and read our analysis of franchise failure rates to understand the broader risk landscape.

Related franchise research

Continue your research with our Dunkin' franchise cost breakdown, Burger King franchise analysis, and Popeyes franchise cost guide.