Tim Hortons USA offers coffee shop and bakery franchises with a 20-year initial term but no specified renewal rights. The system has 663 total units (640 franchised, 23 company-owned) and shows modest growth with 33 new openings in 2024. Investment ranges dramatically from $131,000 for Non-Standard Shops to over $2M for Standard Shops. The franchise fee is $50,000 with 6% royalties and 4% advertising contributions. Financial performance data shows average monthly gross sales of $105,737 with 29% COGS and 30% labor costs. A significant weakness is the lack of territorial protection - franchisors can establish competing locations anywhere. The system has some pending litigation including class action suits. Training is comprehensive at 5 weeks but costs $500 per person per week after the first two people. Overall, this represents a mature coffee/bakery concept with reasonable financial performance but limited franchisee territorial protection.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
Similar to Tim Hortons in category and investment range