2026 FDD Issued Mar 13, 2026 Minnesota Commerce (CARDS) Checked Nov 3, 2026
Tim Hortons Franchise Cost (2026)
A Tim Hortons franchise costs an estimated $988,000 – $3,312,500 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $50,000 initial franchise fee (Item 5) and covers this format: Standard Shop: New Model under Franchise Agreement. Item 6 lists franchise agreement: royalty: 4.5% – 6% of Gross Sales, subject to the conditions below.
- Total investment
- $988K – $3.31MItem 7 source and qualifications
- Franchise fee
- $50KItem 5 source and terms
- Royalty
- 4.5% – 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 4% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 693Item 20 source and scope
- Franchise exit rate
- 3.5% / yrCalculated 3-year average; definition and source
What stands out about Tim Hortons
The FDD offers several different ways to run a Tim Hortons location, and their startup figures are far apart. The New Model Standard Shop table includes substantial site development and building costs, while the lower Standard Shop endpoint on the cover belongs to the within-Petro format. Real estate itself is shown as an unpriced line and excluded from the printed total. A buyer comparing locations needs the matching format table rather than the cover's full Standard Shop range alone.
Item 19 reports monthly Gross Sales for Standard Shops that supplied enough months of data, not an annual Store total. The group includes only a small number of New Model Shops and excludes Operator Agreement locations. Some eligible Shops opened during the reporting year, so multiplying the average month into a year would add an assumption the FDD does not print. The royalty also varies by agreement, while technology charges and possible premises rent sit outside a simple percentage model.
The franchise and Operator Agreement fees are listed in separate Item 6 tables. An Operator pays a much larger sales-based operator charge but does not pay the main agreement's initial franchise fee; mixing those rows would overstate one format's obligations. Item 20 includes Operator Shops in franchised totals and records the New York reacquisitions as a change in ownership category. The end-of-year franchised count therefore has a different scope from the Item 19 sales sample.
What are the initial franchise fees and financial requirements for Tim Hortons?
Item 5 lists an initial franchise fee of $50,000 for Tim Hortons. Check the cited Item 5 for payment timing, discounts and format-specific terms.
The standard Shop Franchise Agreement charges a $50,000 initial franchise fee. A Non-Standard Shop has a separate $25,000 fee, while an Operator Agreement has no initial franchise fee but has a security deposit. A Development Agreement requires advance installments equal to $25,000 per committed Shop, creditable against each opened Shop's then-current franchise fee; these are not additional fees on top of the same fee amount. Initial training is charged separately per attendee. The Cold Stone Co-Branded addendum on PDF page 502 lists another $20,000 initial fee for that alternative offer.
Source: Tim Hortons 2026 FDD, Item 5, PDF p. 27.
This record lists no minimum net worth or liquid-capital requirement for Tim Hortons, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Tim Hortons franchise? (Item 7)
Source: Tim Hortons 2026 FDD, Item 7, PDF p. 37.
Item 7 of Tim Hortons’s 2026 Franchise Disclosure Document estimates the total cost to open one standard shop: new model under franchise agreement at $988,000 – $3,312,500. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Real Estate Taxes, Personal Property Taxes and CAM Charges | $35,000 | $100,000 |
| Equipment | $335,000 | $500,000 |
| Planning, Development and Design Costs | $20,000 | $275,000 |
| Real Estate | See Note 5; not included in the printed numeric total | See Note 5; not included in the printed numeric total |
| Site Development Costs | $100,000 | $1,200,000 |
| Building Costs | $385,000 | $1,020,000 |
| Training | $20,000 | $50,000 |
| Start-up Supplies and Initial Inventory | $7,000 | $14,000 |
| Professional and License Fees | $8,500 | $25,000 |
| Insurance | $2,500 | $21,500 |
| Security Deposits | $0 | $15,000 |
| Additional Funds, First Three Months | $25,000 | $42,000 |
| Total | $988,000 | $3,312,500 |
Other formats
| Format | Total investment |
|---|---|
| Standard Shop within Petro Location | $427,500 – $1,573,500 |
| Standard Shop: Other | $913,000 – $3,013,500 |
| Non-Standard Shop | $148,000 – $802,700 |
| Operator Agreement Shop | $60,150 – $217,500 |
| Newly Built Co-Branded Franchise Restaurant | $695,500 – $1,914,400 |
| Renovated Co-Branded Franchise Restaurant | $135,300 – $266,100 |
| Newly Built Co-Branded Operator Restaurant | $59,900 – $148,400 |
| Renovated Co-Branded Operator Restaurant | $14,600 – $39,000 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
The main New Model Standard Shop table spans PDF pages 37-38. The cover's lower $427,500 Standard Shop endpoint is the separate within-Petro format on pages 38-39, not the New Model table's low endpoint. The other Standard and Non-Standard totals come from pages 39-41; the Operator total comes from page 44. Co-branded ranges are disclosed on the cover and detailed in the Cold Stone addendum on PDF pages 507-511. All disclosed numeric New Model lines reconcile, but the Real Estate row is printed as 'See Note 5' and is not a zero-cost line. The FDD expressly excludes real property from its cover ranges.
What ongoing royalties and fees does Tim Hortons charge? (Item 6)
Source: Tim Hortons 2026 FDD, Item 6, PDF p. 29.
Item 6 of Tim Hortons’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Franchise Agreement: Royalty | 4.5% – 6% of Gross Sales | Every period | Generally 6% for a Shop with property control; lower rates depend on agreement terms and circumstances. (Item 6, PDF p. 29) |
| Franchise Agreement: Advertising Contribution | 4% of Gross Sales | Every period | Monthly contribution. Captured-traffic Standard Shops pay 3% under the Item 6 footnote. (Item 6, PDF p. 29) |
| Franchise Agreement: Interest and Audit Costs | Varies | When it applies | Conditional audit expenses and interest on late payments or understated Gross Sales. (Item 6, PDF p. 29) |
| Franchise Agreement: Additional Training | Varies | When it applies | Materials fee up to $1,000 per person, plus other applicable training costs. (Item 6, PDF p. 29) |
| Franchise Agreement: Transfer Fee | Varies | When it applies | Five percent of the full Shop purchase price, capped at $25,000 per Shop. This is a percentage of the business sale price, not operating Gross Sales. (Item 6, PDF p. 29) |
| Franchise Agreement: Indemnification | Varies | When it applies | Conditional covered claims, losses and expenses. (Item 6, PDF p. 29) |
| Franchise Agreement: Insurance | Varies | When it applies | Cost of insurance plus procurement expenses up to $5,000 if the franchisor obtains it for the Restaurant. (Item 6, PDF p. 29) |
| Franchise Agreement: Product Testing, Inspections and Approval | Varies | When it applies | Actual evaluation expense for a requested new product or supplier, capped at $30,000 per product or supplier. (Item 6, PDF p. 29) |
| Franchise Agreement: Taxes | Varies | When it applies | Applicable taxes assessed on payments to the franchisor. (Item 6, PDF p. 30) |
| Franchise Agreement: Refurbishing Shop | Varies | When it applies | Refurbishment cost capped at $250,000 in the Item 6 table; the franchisor may require work periodically. (Item 6, PDF p. 30) |
| Franchise Agreement: Lease for Restaurant Premises | 7% – 13% of Gross Sales | When it applies | Applies when the franchisor or affiliate leases or subleases premises; flow-through CAM, insurance, taxes and billing expenses are additional. Not every franchisee has this lease. (Item 6, PDF p. 30) |
| Franchise Agreement: Reorganization | Varies | When it applies | Legal and administrative processing expenses up to $5,000. (Item 6, PDF p. 30) |
| Franchise Agreement: Restaurant Technology Charges | $450 – $1,400 per month | Every period | Item 6 describes a service package including card processing, mobile orders, equipment support and internet. (Item 6, PDF p. 30) |
| Franchise Agreement: Food Safety Modernization Fee | Varies | When it applies | Up to $100 per year, payable on demand for compliance evaluation. (Item 6, PDF p. 30) |
| Franchise Agreement: Equipment | Varies | When it applies | Additional equipment purchases from franchisor or affiliate, up to $250,000 in the table. (Item 6, PDF p. 30) |
| Franchise Agreement: Tim Horton Children's Foundation | $1,750 | When it applies | Per Shop foundation initiative participation charge, described as incurred. (Item 6, PDF p. 30) |
| Franchise Agreement: Background, Credit and Asset Verification | $5,000 – $15,000 | When it applies | For international applicants. (Item 6, PDF p. 30) |
| Franchise Agreement: Brand Damage Fee | Varies | When it applies | Conditional on early termination of an Area Development Agreement; tied to the next initial-fee installment. (Item 6, PDF p. 31) |
| Operator Agreement: Operator Fee | 20% – 24% of Gross Sales | When it applies | Only for Operator Agreements, not the main Franchise Agreement. Paid weekly; rate depends on premises rent costs. (Item 6, PDF p. 33) |
| Operator Agreement: Advertising Contribution | 4% of Gross Sales | When it applies | Only for Operator Agreements; not an additional charge on top of the main franchise agreement's advertising contribution. (Item 6, PDF p. 33) |
| Operator Agreement: Additional Training | Varies | When it applies | Materials fee up to $1,000 per person for Operator Agreements. (Item 6, PDF p. 33) |
| Operator Agreement: Taxes | Varies | When it applies | Applicable tax reimbursement under an Operator Agreement. (Item 6, PDF p. 33) |
| Operator Agreement: Lease for Shop Premises | Varies | When it applies | Flow-through rental, CAM, insurance, property-tax and billing charges for an Operator Shop. (Item 6, PDF p. 33) |
| Operator Agreement: Restaurant Technology Charges | $450 – $1,400 per month | When it applies | Only for Operator Agreements; this is the same disclosed range as the Franchise Agreement technology row, not an additional charge to franchisees. (Item 6, PDF p. 33) |
| Operator Agreement: Indemnification | Varies | When it applies | Conditional claims or losses under an Operator Agreement. (Item 6, PDF p. 33) |
| Operator Agreement: Interest and Audit Costs | Varies | When it applies | Conditional late-payment, underreporting and audit charges under an Operator Agreement. (Item 6, PDF p. 34) |
| Operator Agreement: Food Safety Modernization Fee | Varies | When it applies | Up to $100 per year on demand for an Operator Shop. (Item 6, PDF p. 34) |
| Operator Agreement: Reorganization | Varies | When it applies | Legal and administrative expenses up to $5,000 for a business structure change. (Item 6, PDF p. 34) |
| Operator Agreement: Tim Horton Children's Foundation | $1,750 | When it applies | Per Operator Shop as incurred; alternative agreement only. (Item 6, PDF p. 34) |
| Operator Agreement: Background Check Fee | $5,000 – $15,000 | When it applies | For international Operator applicants. (Item 6, PDF p. 34) |
| Co-Branded Addendum: Royalty on Cold Stone Sales | 6% of Cold Stone product Gross Sales | When it applies | Addendum fee for Co-Branded Shops. Its footnote says Cold Stone product sales already enter Tim Hortons Gross Sales for the main royalty, and Tim Hortons is responsible for payments to Cold Stone. Do not add this row to the main Shop royalty in a model. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Premises Rent | 8.5% of Cold Stone product Gross Sales | When it applies | Only for the Co-Branded addendum, not a standard Tim Hortons Shop. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Advertising on Cold Stone Sales | 2.5% of Cold Stone product Gross Sales | When it applies | The addendum footnote says Cold Stone product sales already enter the main Shop's advertising base, with Tim Hortons responsible for payments to Cold Stone. Do not add this row to the main Shop advertising fee in a model. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Initial Training | Varies | When it applies | No charge for up to two people; $1,500 for each additional trainee. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Continuing Training and Meetings | Varies | When it applies | Set by Cold Stone, capped at $1,500 per year; alternative Co-Branded offer only. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Digital Menu Boards | $150 per month | When it applies | Current Co-Branded monthly charge; amount may vary. (Item 6, PDF p. 504) |
| Co-Branded Addendum: Equipment Rent of Cold Stone Assets | $2,500 per month | When it applies | Applies when renting the Cold Stone assets under the Co-Branded addendum. (Item 6, PDF p. 504) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Tim Hortons startup investment and modeled fees over 10 years
Item 19 reports average monthly rather than annual Gross Sales. The royalty ranges by agreement, and some Shops have separate occupancy charges, so the disclosed monthly figure cannot support the site's simplified annual fee model. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Tim Hortons franchised outlet history
Source: Tim Hortons 2026 FDD, Item 20, PDF p. 87.
Item 20 Table 3 reports 669 franchised outlets at the end of 2025. The company-owned table reports a further 24 outlets. Our calculated average annual franchised exit rate is 3.5% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 636 | 26 | 20 | 642 | 3.1% |
| 2024 | 642 | 33 | 35 | 640 | 5.5% |
| 2025 | 640 | 42 | 13 | 669 | 2% |
Franchised units went from 636 to 669 over 3 years (+33).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Tim Hortons’s exit rate with other brands.
4 units changed owners in 2025.
Table 3 national totals are on PDF page 87, transfers on page 86, and company-owned Table 4 endings on page 88. Table 3 includes Shops operated under Operator Agreements: 32 at year-end 2023 and eleven at both 2024 and 2025 year ends. The 2024 reacquisition of 23 New York Shops moved them to the company-owned table and does not by itself mean the Shops closed. Item 19 covers a narrower set of Standard Shops than Item 20's total franchise and Operator footprint.
How much do Tim Hortons franchise owners make? (Item 19)
Source: Tim Hortons 2026 FDD, Item 19, PDF p. 82.
Item 19 of the 2026 FDD reports average Monthly Gross Sales, Franchised Standard Shops of $107,845 (2025 monthly average, 585 franchised Standard Shops reporting at least ten months of 2025 sales). Tim Hortons’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (4.5% – 6% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Tim Hortons Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Tim Hortons’s Item 19 figures and sample limits.
How long is the Tim Hortons franchise agreement term?
Source: Tim Hortons 2026 FDD, Item 17, PDF p. 71.
The standard Tim Hortons franchise agreement runs 20 years.
The agreement starts at signing and typically expires twenty years less one day after opening. Non-Standard Shop terms generally run five to ten years less one day; Operator Agreements have a different end condition. Item 17 lists no renewal or extension under the main Franchise Agreement.
How long does it take to open a Tim Hortons franchise? (Item 11)
Source: Tim Hortons 2026 FDD, Item 11, PDF p. 58.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement to opening: approximately 4 to 6 weeks for a franchisee developing or constructing the restaurant on approved leased or owned property.
The FDD separately estimates 3 to 18 months for a Development Agreement business and 1 day to 1 year for an Operator Agreement Shop.
Franchises with a similar investment range
These published records are selected by proximity to Tim Hortons’s $988,000 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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Compare other restaurants & food franchises
Sources
Tim Hortons USA Inc. Franchise Disclosure Document, issued March 13, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 27
- Item 6: cited PDF p. 29
- Item 7: cited PDF p. 37
- Item 19: cited PDF p. 82
- Item 20: cited PDF p. 87
- Agreement term (Item 17): cited PDF p. 71
Page references for Tim Hortons use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 3, 2026: Source check completed against the recorded FDD.
- November 3, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 13, 2026).