Tim HortonsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tim Hortons franchise requires a total initial investment of $131K – $2.2M, including a $50K franchise fee and an ongoing 4.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 26 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $131K – $2.2M
- 14th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 4.5%
- 12th pct Service Resta…
- Units
- 663
- 91st pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 26 SBA loans charged off, well below the 16% franchise average.
Franchising since 1984. Systems this mature have refined operations and brand recognition.
13 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $131K – $2.2M including a $50K franchise fee, 4.5% ongoing royalty.
- Item 19 discloses "gross_sales" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 48/100. SBA loan charge-off rate of 0.0% across 26 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 13 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tim Hortons USA Inc.
- Parent company
- Restaurant Brands International Inc.
- Incorporated in
- FL
- HQ
- 5707 Blue Lagoon Drive, Miami, Florida 33126
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $7.0B
- vs $8.4B prior year
Overview
About
Tim Hortons franchisees operate quick-service coffee and donut shops, managing daily operations including food preparation, customer service, inventory management, and staff scheduling. Franchisees must meet corporate standards for product quality, store appearance, and brand consistency while generating revenue primarily from coffee, baked goods, and breakfast/lunch items sold to local customer bases.
- CEO
- Joshua Kobza
- Headquarters
- FL
- Founded
- 1984
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $25K | $42K |
| Equipment, build-out, other | $56K | $2.1M |
| Total initial investment | $131K | $2.2M |
Source: Tim Hortons 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $131K – $2.2M
- Better than avg vs category
- Liquid capital req'd
- $25K – $42K
- Near category avg vs category
- Franchise fee
- $25K – $50K
- Below avg, review vs category
- Royalty
- 4.5%
- Gross Sales · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $25K |
| Total fee load | 8.5% of rev |
Financial Performance
This brand's FDD disclosed "gross_sales" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Quick-Service Restaurants averages
How Tim Hortons Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 663
- Opened
- 33
- Last reporting year
- Closed
- 5
- Turnover rate
- 0.8%
- Company-owned
- 23
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -0.3%
- Net unit change last year
- 3-yr CAGR
- +0.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 29
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $14.6M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 0
Vintage analysis
Tim Hortons charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Tim Hortons's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 26 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tim Hortons presents high investment risk due to shrinking unit base, hidden profitability metrics, extensive litigation history, and weak brand momentum in mature markets.
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 48 / 100 rating
- 01MINORDeclining unit count (-0.3% YoY) signals system contraction and potential market saturation
- 02MEDNo disclosed net income data prevents ROI validation; average revenue of $105,737 is extremely low for QSR and insufficient to cover typical operating costs
- 03HIGHMultiple active litigation cases including breach of contract, class actions on promotions/advertising funds, and no-poach settlements indicate systemic franchisor-franchisee disputes
- 04MINORNo protected territory creates direct competition risk from other Tim Hortons franchisees in same market
- 05MEDHigh royalty rate (4.5-6%) combined with undisclosed profitability suggests razor-thin or negative margins for franchisees
- 06MINOR20-year term locks capital with declining brand momentum in core Canadian market
- 07HIGHGoing Concern = False indicates potential financial instability at corporate level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 13 |
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 179 hrs
- POS system
- Standardized POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Standardized POS System
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tim Hortons · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tim Hortons franchise?
The total investment to open a Tim Hortons franchise ranges from $131K – $2.2M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tim Hortons franchise owners earn?
Tim Hortons does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Tim Hortons's franchise failure rate?
Based on SBA 7(a) loan data, Tim Hortons has a charge-off rate of 0.0% across 26 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Tim Hortons franchise locations are there?
As of their most recent FDD filing, Tim Hortons has 663 total units in the United States, including 636 franchised units and 23 company-owned units. 33 new units were opened in the latest reporting year.
Is Tim Hortons a good franchise to buy?
FranchiseVerdict rates Tim Hortons as a A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.