Analysis
Tim Hortons Franchise Cost: Investment & SBA Data
Tim Hortons franchise cost breakdown: FDD Item 7 investment range, franchise fee, royalties, SBA loan performance, and U.S. expansion analysis.
A Tim Hortons franchise costs $131K to $2.18M 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 revenue in its U.S. FDD. Across 26 SBA 7(a) loans, the brand shows a 0% charge-off rate, but that sample is far too small to draw meaningful conclusions. The brand operates 663 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. There are over 4,000 Canadian locations — more than McDonald's and Starbucks combined in that market. 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 663 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:
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Initial franchise fee | $50,000 | $50,000 |
| Construction & leasehold | $25,000 | $1,200,000 |
| Equipment, furniture & fixtures | $20,000 | $450,000 |
| Signage & decor | $5,000 | $85,000 |
| Opening inventory & supplies | $6,000 | $20,000 |
| Training & pre-opening | $10,000 | $73,000 |
| Working capital & other | $15,000 | $302,000 |
| Total estimated investment | $131,000 | $2,180,000 |
The $131K low end represents a small non-traditional unit (kiosk or inline space in an existing building). A full standalone drive-thru restaurant will run $1.2M to $2.18M — comparable to a Dunkin' or Burger King build-out. That $50,000 franchise fee is worth noting — it's one of the highest initial fees in the QSR segment.
The revenue question mark
Tim Hortons does not disclose average unit revenue in its U.S. FDD Item 19. This is a significant red flag for prospective franchisees. When a franchisor with 663 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:
| Brand | Avg Revenue | Revenue Disclosed? | Royalty |
|---|---|---|---|
| Dunkin' | $1.1M | Yes | 5.9% |
| McDonald's | $4.0M | Yes | 4.0% |
| Tim Hortons (U.S.) | Not disclosed | No | 4.5% |
Industry estimates for U.S. Tim Hortons locations suggest average revenues in the range of $600,000 to $900,000, but these are not confirmed by the company. Canadian locations perform significantly better, reportedly averaging $1.2M+, but 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 26 SBA 7(a) loans on file and a 0% charge-off rate, the SBA data for Tim Hortons is essentially meaningless for risk assessment. For comparison, Dunkin' has over 2,000 SBA loans and McDonald's has 1,247. The 26-loan sample for Tim Hortons reflects the limited U.S. franchise activity and possibly the brand's relatively recent U.S. expansion push.
The risk score of 20 out of 100 looks excellent on paper, but it should be interpreted cautiously given the data limitations. Check the raw numbers on our SBA explorer.
Ongoing fees
- Royalty: 4.5% of gross sales. This is competitive with other QSR brands and slightly below Dunkin's 5.9%.
- Advertising: 4% 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. If U.S. locations average $700K, the total fee burden is roughly $59,500 per year. If they average $1M, it's $85,000.
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.
Research Tim Hortons further
- 📄 Download the Tim Hortons FDD summary — $5 per brand
- 📞 Get Tim Hortons verified franchisee contacts — $49 per brand
- 📊 Category profitability report — $99
Frequently Asked Questions
- How much does a Tim Hortons franchise cost in the U.S.?
- A Tim Hortons franchise in the United States costs between $131,000 and $2,180,000 in total investment, with a $50,000 franchise fee. The wide range reflects different formats: a small non-traditional kiosk at the low end versus a full standalone drive-thru restaurant at the high end. Most traditional locations fall in the $1.2M to $2.18M range.
- Does Tim Hortons disclose franchise revenue?
- No. Tim Hortons does not disclose average unit revenue for its U.S. locations in the FDD Item 19. Industry estimates suggest U.S. locations average between $600,000 and $900,000 per year, but these figures are not confirmed by the company. Canadian locations reportedly average over $1.2M, but the two markets have fundamentally different brand dynamics.
- Who owns Tim Hortons?
- Tim Hortons is owned by Restaurant Brands International (RBI), a publicly traded conglomerate that also owns Burger King, Popeyes, and Firehouse Subs. RBI acquired Tim Hortons in 2014. While Tim Hortons is a Canadian brand, RBI's corporate structure is domiciled in Florida. RBI has faced criticism from franchisees across its brands regarding corporate policies and margin pressures.
- Is Tim Hortons successful in the United States?
- Tim Hortons has 663 U.S. locations, mostly concentrated in border-adjacent states like New York, Michigan, and Ohio. The U.S. expansion has been slow compared to the brand's dominance in Canada (4,000+ locations). Brand awareness in most U.S. markets is limited, and the company does not disclose U.S. revenue, which suggests unit economics may lag behind Canadian locations.
- How does Tim Hortons compare to Dunkin' as a franchise?
- Dunkin' is a significantly larger and more established U.S. franchise with higher disclosed revenue ($1.1M average), deeper brand recognition, and a robust SBA loan track record (2,000+ loans). Tim Hortons offers a slightly lower royalty (4.5% vs. 5.9%) but does not disclose U.S. revenue and has minimal SBA data (26 loans). For most U.S. markets, Dunkin' is the safer bet based on available data.