Tim Hortons USA Inc. charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Tim Hortons USA Inc. franchise is approximately 10.0% of gross sales (2025 FDD). This includes the royalty fee, a 4.0% marketing/advertising fund contribution, a $850/month technology fee, and other recurring charges.

Tim Hortons USA Inc. has been involved in 5 litigation cases over the past 3 years (2025 FDD). There are currently 5 pending cases. There is at least one class action lawsuit pending.

No, the Tim Hortons USA Inc. franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Tim Hortons USA Inc. offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.

Tim Hortons USA Inc. currently operates 663 locations (2025 FDD) (640 franchised, 23 company-owned). The system grew by 3.3% over the past year. The 3-year compound annual growth rate is 1.4%.

The 1-year franchisee turnover rate for Tim Hortons USA Inc. is 1.9% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the Tim Hortons USA Inc. FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $1.2M (average: $1.3M).

The initial franchise agreement term for Tim Hortons USA Inc. is 20 years (2025 FDD). The total potential term is 20 years.

Tim Hortons USA Inc.'s post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 5 miles of the former location (2025 FDD).

No, Tim Hortons USA Inc.'s franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.

Tim Hortons USA Inc. provides 194 hours of initial training over approximately 5 weeks (2025 FDD). Ongoing field support is provided on a quarterly basis.

Yes, Tim Hortons USA Inc. provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.