Risk Score
Pending analysis
Investment Range
$131,000 - $2,177,500
Franchise Fee
$25,000
Min Cash Required
$25,000
Total US Locations
663
Business Summary
Tim Hortons USA Inc. operates restaurants specializing in the sale of coffee, non-alcoholic beverages, baked goods, soups, sandwiches, and related products. Franchisees can operate two main types of Tim Hortons restaurants: Standard Shops, which are typical full-service restaurants often with seating and drive-thrus, and Non-Standard Shops, which are smaller, modular self-service carts offering a limited menu.
Corporate History
Tim Hortons USA Inc.'s predecessor first opened a Tim Hortons Shop in the United States in 1984. The company's predecessor also offered franchises briefly in the mid-1980s and then resumed offering them in the United States in 1993. Tim Hortons USA Inc. itself was incorporated in Delaware in 2007 and then reincorporated in Florida in 2017. Since July 2020, it has also offered franchises in Latin America and the Caribbean.
Financial Overview
Investment Range
$131,000 - $2,177,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$25,000
Royalty %
6%
Marketing %
4%
Equipment Costs (Low)
$50,000
Equipment Costs (High)
$410,000
Working Capital
$21,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tim Hortons USA Inc. operates under a financially robust parent company, Restaurant Brands International Inc. (RBI), which reported total assets of over $24 billion and a net income of $1.4 billion in 2024. RBI's management assessed its internal control over financial reporting as effective, and the auditors issued an unqualified opinion on its consolidated financial statements. While RBI carries substantial long-term debt, there are no explicit concerns raised regarding its financial stability or ability to continue operations.
Financing Details
Tim Hortons USA Inc. does not offer any direct financing to its franchisees, nor does it arrange financing from other sources. Franchisees are responsible for securing their own funding, and Tim Hortons USA Inc. does not guarantee any notes, leases, or obligations to third parties.
Performance Metrics
Total US Locations
663
Franchised Units
640
Corporate Units
23
Avg Square Footage
1,750
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
12
Litigation Summary
Tim Hortons USA Inc. has been involved in several legal matters. Currently, there are 6 pending lawsuits, most of which involve its parent company or affiliates, not Tim Hortons USA Inc. directly. These pending cases include allegations of breach of contract by franchisees against an affiliate, consumer class actions regarding promotions, and shareholder claims related to an acquisition. In the past, Tim Hortons USA Inc. itself was involved in one case for breach of written agreements that was settled. Its affiliates have also been involved in other concluded disputes, including franchisee class actions and a multi-jurisdictional no-poach settlement with several states, where Tim Hortons USA Inc. was a party and agreed not to enforce no-poach provisions.
Bankruptcy History
Tim Hortons USA Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Tim Hortons USA Inc. does not grant franchisees any rights of renewal for their franchise agreements. Franchisees are informed that the franchise grant contains no renewal rights and any opportunity to obtain a successor franchise is at the sole discretion of the franchisor.
Training & Support Program
Franchisor Assistance
Tim Hortons USA Inc. provides comprehensive support to its franchisees. Before opening, Tim Hortons USA Inc. offers an initial training program for up to six employees, with the first two attending at no cost. It also provides advice on restaurant construction, and may offer on-site pre-opening and opening assistance for first-time Standard Shop franchisees. Franchisees receive access to a Confidential Operations Manual and, if leasing from a third party, must have their lease terms approved and include a Lease Rider. Ongoing assistance includes making additional training programs available, revising the operating manual, conducting up to four annual inspections, and administering the advertising fund for system-wide marketing. Franchisees are also required to enter into service contracts for facility maintenance as designated by Tim Hortons USA Inc.
Initial Training Hours
195
Training Location
Columbus, Ohio or Rochester, NY
Ongoing Support
Tim Hortons USA Inc. provides ongoing support through additional training programs as determined by the franchisor. It revises the Confidential Operations Manual periodically to incorporate new developments. The franchisor also conducts up to four inspections per year of the franchised restaurant and tests product samples to ensure compliance with standards. Franchisees may be required to enter into service contracts for the evaluation and maintenance of their restaurant's interior and exterior. Additionally, Tim Hortons USA Inc. administers the system's advertising fund to direct advertising and promotional programs.
Franchise Requirements
Ideal Candidate Profile
Tim Hortons USA Inc. seeks franchisees, particularly for Development Agreements, who are sophisticated and highly experienced. Franchisees must designate a managing owner with authority to ensure compliance and reside within 30 miles of their Tim Hortons Shop. This managing owner, or an approved managing director, must operate the restaurant on a full-time basis. For franchisees owning multiple locations, a full-time general manager and at least one restaurant manager are required, both of whom must complete the initial training program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
Tim Hortons franchisees do not receive an exclusive or protected territory for their individual shops. The franchisor reserves the right to establish other Tim Hortons restaurants, company-owned or franchised, and other distribution channels such as kiosks, grocery stores, food trucks, or internet sales, at any location regardless of its proximity to or impact on the franchisee's restaurant. For those entering a Development Agreement, a non-exclusive "Territory" is designated for opening multiple restaurants. The size and location of this Development Agreement Territory are determined by the franchisor at the time of signing, based on factors such as the number of restaurants the developer commits to opening, their business acumen, financial capacity, and prior experience. These territories are generally defined as a designated market area.
Staffing Notes
Tim Hortons USA Inc. franchisees are required to maintain a sufficient number of trained employees to meet the franchisor's standards for customer service and speed. All employees must present a neat appearance and wear specified uniforms. For franchisees operating multiple Tim Hortons Shops, a full-time general manager and at least one restaurant manager are required for direct, personal supervision of the restaurants. These managers must successfully complete the initial training program.