Tim Hortons Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Tim Hortons is a Canadian quick-service coffee-and-bakery franchise known for coffee, donuts, Timbits, and breakfast. Franchisees run cafes managing food and beverage prep, drive-thru and counter service, and staffing.
FranchiseVerdict summary · 2026
A Tim Hortons franchise requires a total initial investment of $988K – $3.3M, including a $25K – $50K franchise fee and an ongoing 4.5% royalty[2]. The 2026 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $988K – $3.3M
- 94th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.5%
- 10th pct Service Resta…
- Units
- 693
- 91st pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $988K – $3.3M including a $50K franchise fee, 4.5% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict A (Strongest tier), verdict score 88/100 (higher is better). SBA loan charge-off rate of 0.0% across 26 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL13 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
Corporate structure & franchisor financials
- Legal entity
- Tim Hortons USA Inc.
- Parent company
- Restaurant Brands International Limited Partnership (RBILP)
- Ultimate parent
- Restaurant Brands International Inc. (RBI)
- CEO title
- Director, Chief Financial Officer and Vice President of Tim Hortons
- Sami Siddiqui
- Incorporated in
- Florida (originally Delaware, changed December 2017)
- HQ
- 5707 Blue Lagoon Drive, Miami, Florida 33126
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $7.0B
- vs $8.4B prior year
Overview
About
- CEO
- Sami Siddiqui
- Headquarters
- FL
- Founded
- 1984
- FDD year
- 2026
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 227% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $25K | $42K |
| Equipment, build-out, other | $913K | $3.2M |
| Total initial investment | $988K | $3.3M |
Source: Tim Hortons 2026 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
- $988K – $3.3M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $42K
- Middle of category vs category
- Franchise fee
- $25K – $50K
- Bottom third — 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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Tim Hortons did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Tim Hortons unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. We omit it from rankings.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.5% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System roughly stable (+4.2% 3-year CAGR) with 693 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Tim Hortons Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 693
- Opened
- 42
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 10
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.0%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +4.2%
- Net unit change over 3 years
- 3-yr CAGR
- +4.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 26
- Closed (3yr)
- 9
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 11
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 753
- 5.1 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Tim Hortons charge-off rate by loan vintage
Top lenders financing Tim Hortons franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Large system (693 units) with 12 pending cases against RBI/TDL/affiliates (mostly not THUSA directly) — routine for a system of this scale and against a parent with $5.16B equity and $776M net income. Financials are parent-level and strong; the litigation count is normal relative to size, leaving essentially one minor governance concern.
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Score breakdown · what drove the 88 / 100 verdict
- 01HIGH12 litigation matters but against RBI/TDL/affiliates, routine for 693-unit system
- 02MINORParent-level financials strong: $5.16B equity, $776M net income on $9.4B revenue
- 03MEDNo bankruptcy, no going-concern, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 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
80 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tim Hortons · FDD (2026) 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 $988K – $3.3M, 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 Item 19 in the Tim Hortons FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Tim Hortons FDD and qualifies whose outlets they describe.
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 693 total units in the United States, including 669 franchised units and 24 company-owned units. 42 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 verdict score of 88 out of 100 (higher is better), 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.
For franchisors
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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.