A quick calculation before you start reading; There’s a Tim Horton’s store for every 8 600 people in Canada? The average net profit after fees and taxes is accurate, although where I am located that net is considerably higher, closer to $375,000 – $400,000. Alternative Franchise Investments. A Standard Shop is the typical Tim Hortons Shop. Ever go into a McD’s in one area and it’s beautiful and then another area and it’s a dump? I could be wrong, but let’s hope not :). – They like to have franchisees have 2 locations. p.s. Shops in Saskatchewan were especially lucrative; a typical franchisee in that province earned more than $396,000 in 2008—a 105 per cent jump from 2002. While it’s apparent that owning a Tim Hortons is like having a money printing machine, most do not realize the costs involved, and how much an owner really takes home.  When doing my research on the costs, I was surprised with how much the parent company takes off the top.  I always thought that franchises had to pay in about 8%-9% royalty which includes marketing.  But the numbers  that I’ve been coming up with is in the range of 17% – 19% on gross sales!  Then I realized that the Tim Hortons parent company actually builds the property and owns the land, so a large portion of the total royalty expenses is the rent charge. In addition I said Market Cap…what the company is worth. He then joined Tim Hortons as global CMO in 2017. EPS (ttm): 2.20, Market Cap: 8.30B However, in 2014, Tim Hortons merged with Burger King under a new parent company, Restaurant Brands International, which is majority-owned by Brazilian investment company 3G Capital. Tim Hortons is Canada's largest quick service restaurant chain. Go to this site and read the actual Tim Hortons contract in full. I’ve seen the financial figures on their computers, and I do the purchasing of stock and know the prices. – Timmie’s head office has the power to come in and tell you “You need a second iced cap machine” and bam – you have to dish out x-thousand dollars for a new machine just like that. Claiming they’re matching sizes with their US locations seems like an excuse, there’s not a lot of impetus to start copying branding and marketing strategies from underperforming American locations. please I will like us to rub minds on some business idea if you willing keep me posted. @ SST: Yeah, I’m quite aware of someone stacking their staff with subsidized employees in order to stack their profits. You can read more about him. No need to exaggerate. @SST – Frivolous lawsuit was decisively dismissed in Tim Horton’s favour…..my speculation is that it was a result of former owner Ron Joyce backing the lawsuit as sour grapes or whatever….that’s done with. Everything you always wanted to know about Tim Hortons! The net profit margin is probably in the 20% to 30% range depending on various factors. You don’t have to go to the artic to get a franchise. Today, there are Tim Hortons shops all across North America and a few locations in the United Kingdom. As expected, the most proven, popular franchises, such as McDonald's and Tim Horton's, tend to have much higher franchise costs but are more likely to generate high returns on investment (ROI). — I’m not licensed to be a financial advisor. For a standard Tim Hortons restaurants, a VetFran Participant pays no initial franchise fee (currently, $35,000) for his/her first Restaurant and monthly royalty payments are reduced by 2.5% for the first 12 months of operation; For VetFran Participants franchising under an Tim Hortons Operator Agreement, a VetFran Participant pays no security deposit for his/her first Restaurant and the monthly operator fee … News Releases. Your email address will not be published. This memorable exchange inspired Gretzky to dream of being a professional hockey player one day. 22. Just last year (2009), Riese Organization, a restaurant franchisee and real-estate company, approached Tim Hortons with a contract to open 12 new locations in and around the New York area. Please check your email for further instructions. Facebook; Tweet; Google Share; LinkedIn; Pinterest; Email; Tim Hortons is known in Canada for being the country’s biggest fast service restaurant chain. My hometown, Orangeville had three independent stores for a service area of 30,000 people. Can’t be that much different though? You are right the two are not comparable in terms of casual dining and QSR….and I’ll take you at your word that BP has SSS of 6%…last year…Tim’s has had positive growth of 3-8% for I don’t know how many years straight and counting….I don’t believe any one has done that. Having grown up in a family of restaurateurs and working as a restaurant operator myself, I look forward to continuing to work closely with our 1,500 restaurant owners across Canada and the rest of the Tim Hortons family in providing exceptional products and service to all our guests.”. Find detailed information about the Tim Hortons restaurant franchise for sale, including cost, fees, investments, and requirements. Tim Hortons Franchise Training & Support 1. The average profit percentage is 15-20 % which is very good . the company has been building stores for almost 50 years and to everyone’s acknowledgement….they make money…so who knows better? Tim Hortons franchise. Seriously, compare the average build of a McDonalds girls to nearly any other minimum wage franchise. Tim Hortons offers the highest quality fresh baked goods to enjoy with our famous premium blend Tim Hortons Coffee. @SST…Boston Pizza, really? but without all the work. This statistic shows the annual revenue of Tim Hortons from 2015 to 2018. What are the Tim Hortons Franchise Opportunities The Tim Hortons is one of the world’s 100 most beloved brands, with over 5,000 units in Canada and 900 units in the United States. “I pass by three Tim Hortons on my way to work, every morning and there’s always a line out of the door,” notes Arnaud Doyon, a 28-year-old event producer from Montreal. Or maybe I’m just easily persuaded. Read the header…”2010 U.S System wide sales” I assure you the average Tim’s in Canada makes a lot more than $978K. I teach a bunch of students who work at Timmys. With thousands of locations from coast to coast in Canada and in the north central United States, Tim Hortons has become a part of everyda.. Tim Hortons Language Selector. 15. You get paid for your hard work and efforts when it’s time to sell a McD’s. What are the key success factors required to be competitive? It sells two products- coffee and donuts. 21. It's difficult to determine how profitable Tim Hortons franchises are in Canada because their Franchise Disclosure Documents aren't available for the general public to evaluate (unlike the US where the FTC understands that transparent evaluation is integral to a functioning market system). Besides that, BP is NOT a QSR. At Tim Hortons ® we’re looking for opportunities to bring our famous fresh brewed coffee, donuts and freshly prepared food served to even more people across the UK in our modern, bright and welcoming restaurants. Tim Hortons regained its independence for the next few years. As far as entry level positions are concerned we hire kids that have never had a job in their life as well as older people needing a second or third chance at life, however, an applicant seeking a management position does need to be vetted. So my question here is, what hiring practices does TH enforce and how much efffort does the mothership put into fair (or unfair) hiring? An example right now would be the new store in Estevan SK, Tims has been running ads in the local rag every week trying to find a franchisee. This is a franchise that cares as much about the local community as its profit margins. We’re proud to offer a respectful, friendly environment where enthusiastic people enjoy working together to meet our guests’ needs. 6. EPS (ttm): 0.35. Walter Gretzky, Wayne’s dad, has kept the autographed napkin for more than 50 years because it meant so much to his son. What’s new at Tim Hortons? The meeting ignited Gretzky’s passion for hockey and inspired him not just to become a professional hockey player, but eventually The Great One. You will be required to pay an initial franchise fee of $35,000, which gives you the license to use the Tim Hortons name. Manager, Franchise Performance Tim Hortons September 2016 – Present 3 years 1 month. who are looking for a lifestyle change You must have an estimated $500,000 in net worth and $100,000 in unencumbered funds in order to qualify. Maxed out: I own one location and I am in the process of securing a second location. Not long after opening the first Tim Hortons, Horton met Ron Joyce, a former Hamilton police constable, and offered Joyce one of the first franchises. The cost of a Tim Hortons ® franchise varies depending on the restaurant size and location, along with other factors. 12. 5 Useful Retirement Calculators (2019) – How Much Do You Need to Retire? Interesting how minimum wage is more or less the same though across the country (low of $9.00, high of $11.00) considering the difference i cost of living (I’d rather be making $10/hr in St.John’s than $9.50 in Vancouver!). The Tim Horton’s model for franchising is probably the best I’ve seen compared to the likes of even McD’s, BK, Wendy’s, etc…..It is owning and renting the properties that allows the parent company to somewhat “control” the consistency across the chain. Alternative Franchise Investments. The FACTS are all there on the net for all to see!!!!!!!!!!!! Tim Hortons Franchise Opportunities. a weekly Royalty fee of 4.5% of gross sales for the term of the License; a monthly Rental fee (which is the greater of a fixed minimum rent or 8.5% of gross monthly sales); a monthly Advertising levy of 4% of gross sales for the term of the License. Hi All, Moreover, this information should not not be considered as the actual or probable sales results that will be realized by any franchisee or Tim Hortons Shop. This is about what you sign when you buy a franchise. To be laying out $500,000 and only getting a “considerably higher” 20% annual return seems weak. 44 comments; 13,554 views; Tim Hortons is considered to be the largest restaurant chain. @David, thanks for the clarification. 1,454 Number of Organizations • $5.1B Total Funding Amount • 943 Number of Investors. Of course it’s not the same (yet) as owning one in the likes of Hamilton…..unless you want to go really remote northern Canada where you might get one….personally not looking to move to the Arctic…. The minimum you would expect to invest in a Tim Hortons location is $60,000. Our team members represent a variety of backgrounds, experiences, and personalities. According to a press release, Gretzky had met Tim Hortons co-founder and hockey legend Tim Horton back in 1968 when he was just a kid. A quick calculation before you start reading; There’s a Tim Horton’s store for every 8 600 people in Canada? Punch in tim hortons lies and see what you will read. This is a franchise that cares as much about the local community as its profit margins. Then I realized that the Tim Hortons parent company actually b… So why not enhance your business by joining us on this journey as a franchise partner? What’s up with that? Multimedia. Home of Canada's favourite coffee. 3. And Tim’s recent change in cup size was a clear reaction to McDonalds – they just realigned their cup sizes to match McDee’s. Financial requirements may be lower or higher depending on the transaction type. 10,000 people spread across farming communities don’t need a tim hortons, but a town of 8-10,000 always have one. FT is the founder and editor of Million Dollar Journey (est. I have hired a few people at our local Tim Horton’s in NY State and the owner has never given me any directive in the hiring procedure. Tim Hortons Franchises are generally profitable after the first year or so, Keep in mind it takes a while for Bill Or Ted to make their initial investments back because franchise fees and the cost of opening a store can be quite expensive. The remaining amount may be financed through the chartered banks, upon approval of a franchise. $250k profit/year, less your capital/interest costs and other expenses… you basically buy yourself a decent paying job with a fair bit of headache involved. Boston Pizza provides the worst value for your money in comparison to all similar chains. :)). Tim Hortons Inc. is a Canadian multinational fast food restaurant chain. When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Most Profitable Franchises in the US Wingstop. Tim Hortons Franchise Details. Owning a franchise is similar to buying a business with built-in loyal customers. I was merely addressing different rates of return on different investments. that there was about one Tim Horton’s store for every 10,000 people roughly. How does paying interest on 60% of your investment affect your net income? The remaining Tim Hortons Shops were not included because they opened or closed after January 1, 2019 (12%), they were not Standard Shops (27%), or they did not report actual sales for all 12 months in 2019 (0.3%). So your advice will help me to understand the complexity, nature and main ball of game for future step. I have always wondered about the numbers though. If you’re hoping to launch a business in the coffee sector but don’t access to the capital investment the Tim Hortons asks for, we have plenty of other coffee shop franchises to choose from. The Tim Hortons franchise is one of the leading brands and their franchise holders can get a phenomenal turnover. – Due to this, they tend to choose people with very solid financial standing and typically very high level experience (executives, financial professionals, those in management, etc.) Founded in 1964 as a coffee and donut shop, Tim Hortons has evolved to meet consumer tastes, with a menu that now includes premium coffee, flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods. My friend just became a TH franchisee…600 to purchase. On the $375-$400k net, what revenues is that based on, around $2M? We’re excited to share this story with a generation of Canadians who have been inspired by Wayne.”. I think it’s too big of a game for others in the restuarant business to not want a piece. Better yet the muffins and baked goods are not frozen and warmed up and advertised to customers as “Always Fresh”. Canadian hockey card collectors want to put Tim Hortons in the penalty box. I work at one, and these guys bank. I can only guess without concrete numbers to work with. If your 16.5% is is on the high end, an average franchise might take in 12%(? 19. Schwan said, “I am deeply humbled to work at such an iconic brand as Tim Hortons. Buy a Tim Hortons fast food franchise. all equipment, furniture, display equipment and signage, 7-week training program in the Oakville, ON Tim Hortons University, a store opening crew to assist in the opening of a Tim Hortons restaurant (for a maximum period of two weeks), right to use the Trademarks and Trade names. No..prices should be the same….if different, then within pennies for taxes, whatever….not sure where you got the info from…. During that seven-year span, the average Hortons outlet earned nearly $1.5 million (before interest and taxes) and watched profits grow from $174,280 in 2002 to more than $265,000 in 2008. Buy into one, then come back here and spew your theories and ideas. The information appearing in this table reflects the aggregate Gross Sales results of individual Standard Shops. -You will not get a store in the Golden Horseshoe in ON….depends on where you want to go. Media. The cost of a full Canadian franchise varies from $430,000 to $480,000* (CDN$) (plus all applicable taxes). Building a $1,000,000 RRSP Starting in your 30’s, 40’s, and 50’s. Perhaps you should try “yes there are standard models and it’s LAID out a certain way”. -no BAM and you hafta put in an ice capp machine…most stuff is in the franchise agreement and there may be strong suggestions to do it…if your selling tons of ice capps, but can’t keep up with demand, why wouldn’t you? Also i would not expect more than 8% from stocks given valuations. Over seas are all partnerships and not really individual franchised. Ever been to the US in recent years and ordered…you would have seen the difference, @jowsnapple: “…Boston Pizza, really? The number would get skewed by more rural vs urban. Once your account is created, you'll be logged-in to this account. It is Canada's largest quick service restaurant chain, with 4,846 restaurants in 14 countries, by December 31, 2018. Is there control as to how much owners pay their staff? How Much Does A Tim Hortons Franchise Cost? $400k net on $2.4 million = 16.5% yield. Franchise with Tims today. BPs store sales growth have averaged over 6%; THs just under 4%. In 2019, Toronto-based quick service restaurant (QSR) chain Tim Hortons generated 2.2 billion U.S. dollars in revenue from sales and 1.14 billion … But a nasty court battle in Ontario has provided a rare glimpse of exactly how much cash the average Hortons store owner pockets in a year: $265,558.That’s 170,000 large cups of profit. I wouldn’t buy anything Timmy’s. 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