Tim Hortons

The transfer fee of $25,000 significantly exceeds typical category ranges. What services or approvals does this fee cover, and is it refundable in any circumstances?

Monthly technology fees of $1,250 are substantially higher than typical for coffee franchises. What specific technology systems and support are included, and how often are these fees adjusted?

With no exclusive territory and no encroachment protections, what prevents Tim Hortons from opening additional locations within close proximity to existing franchisee locations?

The franchise agreement contains zero renewal rights. What happens to a franchisee's business investment and location after the 20-year term expires?

Termination rates of 1.1% annually are elevated compared to peers. What are the primary reasons Tim Hortons has terminated franchisee agreements in the past 3 years?

Litigation cases total 12 with 5 pending, significantly above typical levels. What are the general subject matters of these disputes, and what percentage involve franchisee claims versus franchisor claims?

Gross sales averages of approximately $105,000 are substantially lower than category peers (typical $555,000+). What does Item 19 disclose about the range and distribution of unit revenues, and are there location-type breakdowns?

The 2-year non-compete restriction extends 5 miles from the former location plus 2 miles from any other Tim Hortons location. Given Tim Hortons' density in many markets, how broad is the practical geographic restriction?

With a 1.4% three-year growth rate below typical ranges, what is the franchisor's growth strategy and are there plans to expand the unit base or reduce underperforming locations?

The franchise requires personal guarantees and broad indemnification covering losses from the franchisor's own actions. How has this indemnification clause been interpreted in past litigation?

Transfer rates average 4.5% annually, suggesting significant unit turnover. What percentage of transfers are approved, and has the franchisor ever denied a transfer request or imposed additional conditions?

What financial support, training, or operational assistance does the franchisor provide to help franchisees achieve results closer to the category average of $555,000+ in sales?

With 8 litigation cases in 3 years, are there identifiable patterns in claims (e.g., payment disputes, performance issues, franchise agreement interpretation)?

The ad fund rate of 4.0% exceeds typical ranges. How is this fund allocated, and does the franchisor provide detailed accounting of ad spending and return on investment metrics?

Given the elevated termination rate and no renewal rights, what contractual provisions allow franchisees to extend operations beyond 20 years or protect their investment in buildout?

How many franchisees have attempted to renew or extend their agreements beyond the initial 20-year term, and how were those requests handled?

The 5-year fee projection is not disclosed. Can the franchisor provide a detailed projection of all ongoing costs including potential fee increases for the initial 20-year term?