Tim Hortons Franchise
Cost, fees, owner earnings, closure rate and litigation for a Tim Hortons franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Tim Hortons discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No Item 19 financial performance representation is included in these FDD excerpts. No revenue, sales, or income data disclosed. Complete omission; prospective buyers receive zero earnings guidance.
What a Tim Hortons franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $135,300 – $1,914,400 | Item 7 — franchisor's own low/high estimate |
Royalty 6% plus 8.5% premises rent plus 2.5% ad fee on Cold Stone sales; operators also pay $2,500/month equipment rent.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Tim Hortons system size and owner turnover
| Total outlets | 693 |
| Ceased operations | 2 |
| Terminated by franchisor | 10 |
| Transferred to new owners | 4 |
| Closure rate | 0.3% of outlets |
2025: 10 non-renewals, 2 ceased operations, 1 reacquired by franchisor; Co-Brand addendum shows 8 outlets from 16 in 2023, shrinking system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Tim Hortons worth it? — how it compares to 32 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $135,300 | cheaper than most (median $350,000) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.3% of outlets | better than most (median 5.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Tim Hortons
The franchisor's framing: No Item 19 financial performance representation is included in these FDD excerpts. No reve… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Tim Hortons franchise — frequently asked
- How much does a Tim Hortons franchise cost?
- The FDD lists a total initial investment of about $135,300–$1,914,400, including a $20,000 initial franchise fee.
- How much do Tim Hortons franchise owners make?
- Tim Hortons discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Tim Hortons franchise fees?
- Tim Hortons' FDD discloses a $20,000 initial franchise fee, a 6% royalty on gross sales, a 2.5% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. Royalty 6% plus 8.5% premises rent plus 2.5% ad fee on Cold Stone sales; operators also pay $2,500/month equipment rent.
- What is the Tim Hortons franchise profit margin?
- Tim Hortons discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Tim Hortons franchise failure rate?
- 2025: 10 non-renewals, 2 ceased operations, 1 reacquired by franchisor; Co-Brand addendum shows 8 outlets from 16 in 2023, shrinking system.
- How many Tim Hortons locations are there?
- Tim Hortons' FDD reports 693 total outlets, with 2 that ceased operations in the most recent reporting year and 4 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Tim Hortons have complaints or lawsuits?
- Tim Hortons discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Tim Hortons franchise worth it?
- It depends on the numbers, not the pitch. Tim Hortons scores F on disclosure honesty, carries about 8.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Tim Hortons to similar franchises
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Source: MN CARDS 35506-202603-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Tim Hortons or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.