Information and Cost of owing a Tim Horton’s Franchise
From simple to a variety of food items
The Tim Horton’s franchise network started off with a single location in Hamilton, Ontario in 1964. The restaurant was actually named after one of its owners, Tim Horton, a National Hockey League star. The said restaurant originally serve donuts and coffee. Tim Horton’s became known for its specialty donuts called Apple Fritter and Dutchie. Throughout the 1970s and 1980s, more and more items were added to the menu; most were treats, but sandwiches and soups were eventually included. Tim Horton died in 1974 in a car accident. This did not stop the restaurant though from flourishing in honor of his name. For the past few years, many Tim Horton franchises opened in Canada and US. Make sure you do your research before buying a franchise or any business. If you want to buy a franchise, check out FranchiseLeader.com to get free information on franchise for sale listings as well as find franchise resales.
Tim Horton franchise review
Tim Horton’s has successfully opened more than 350 branches in the US and over 2,750 locations in Canada. The Canadian operations of Tim Horton’s is actually 95 percent franchise owned and managed. The company decided to join the Wendy’s International, Inc. last 1995. As such, this further improved Tim Horton’s expansion in the United States. US-based Tim Horton’s branches were mostly located in New York, Ohio, Michigan, Pennsylvania, Massachusetts, and Mississippi. For the last few years, the company experienced a stable growth rate. In 2009, Tim Horton’s corporate sales were $507 million. This is a positive 10 percent increase over the same period in 2008. Moreover, there was also a 3.2 percent same store sales growth in the US and 3.4 percent in Canada. There are 28 new Tim Horton’s franchises that opened in the first quarter of 2009, 20 of which are located in Canada.
Cost and other details of the Tim Horton’s franchise
A Tim Horton’s franchise requires an initial fee of $35,000. The estimated total investment can go as high as $400,000 to $675,000. For a person to own a Tim Horton’s franchise, he needs to have a capital of not less than $144,000, plus $50,000 for operating costs. The incentive program of the company is stated in the franchise details. The said incentive program includes financing on equipment, store fixtures, indoor signage, as well as furniture. The program is meant to provide financial break to its franchisees. Tim Horton’s requires $20,000 down payment commitment, with the remainder stated on a promissory note. The royalty fee of 4.5 percent is lowered to 2.5 during the first two years in business. Rent is also reduced to one-half percent. By the end of the two-year period, the promissory note also matures and requires payment. It is expected from the franchise owner to set aside money from the two-trice cuts and to use this money to pay off the promissory note. Tim Horton’s franchise fee of four percent remains the same during the entire contract. A Tim Horton’s franchise agreement is good for 10 years. It can be renewed for another 10 years. A Tim Horton’s franchisee may not be given location exclusivity, but the parent company ensures that any old or new operations in the area won’t affect the sales and growth of existing sites.
Extensive training program for Tim Horton’s franchisees
Oakville Ontario is where the company’s training center is located. This is the place where extensive training courses were given to all Tim Horton franchisees. All new members of the Tim Horton’s franchise network are required to undergo training for eight weeks. The training center has classrooms and a fully operational store. During the training, proper food handling, hygiene processes, store equipment maintenance, and employee relations are given emphasis. As you completed the training, the corporate office will lend you an opening crew that will guide you through the first two weeks of business.
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Filed under category by on Mar 12th, 2011. 