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Tim Hortons franchise financing options
Compare costs, fees and where to get financing for a Tim Hortons.
Estimated initial costs
Our cost estimates are accurate as of 2022 from Franchise Direct and include opening fees and expenses only. The location you choose for your Tim Hortons franchise may result in higher or lower fees.
Franchise feesTim Hortons franchise fees total around $32,500, which beats out the $37,000 average for the 200 largest franchises nationwide.
|Initial franchise fee||$15,000 to $50,000|
|Royalty||4.5% to 6% of gross sales.|
|Estimated total||$15,000 to $50,000|
Equipment feesEquipment fees total $255,000 for Tim Hortons. This costs more than the $180,023 average for the top 200 franchises.
|Equipment||$75,000 to $435,000|
|Estimated total||$75,000 to $435,000|
Real estate feesReal estate will set you back $817,750 for Tim Hortons, which is more expensive than the average of $788,376 for the top 200 franchises.
|Real estate taxes, personal property taxes and common area maintenance charges||$1,000 to $22,000|
|Real estate||Varies to|
|Planning and development and design costs||$17,500 to $100,000|
|Site development costs||$0 to $500,000|
|Building costs||$150,000 to $800,000|
|Development assistance fees||$5,000 to $25,000|
|Security deposits||$0 to $15,000|
|Estimated total||$173,500 to $1,462,000|
Training feesTim Hortons initial training costs total $11,000 — more than the nationwide average of $9,788.
|Training||$7,000 to $15,000|
|Estimated total||$7,000 to $15,000|
Inventory costsInitial inventory for Tim Hortons shakes out to $15,500. This is less than the nationwide average of $53,119.
|Startup supplies and initial inventory||$1,000 to $30,000|
|Estimated total||$1,000 to $30,000|
Marketing costsAdvertisement and marketing costs total up to $2,750 for Tim Hortons, beating out the nationwide average of $9,938.
|Initial advertising and promotion||$500 to $5,000|
|Estimated total||$500 to $5,000|
Licenses and permits costsTim Hortons initial licenses and permits will set you back $5,750. This comes out to less than $18,770 — the overall nationwide average.
|Licenses and permits||Cost|
|Professional and license fees||$1,500 to $10,000|
|Estimated total||$1,500 to $10,000|
Insurance costsInitial insurance costs for Tim Hortons run $10,825. This means you'll be paying more than the overall nationwide average of $6,311.
|Insurance||$150 to $21,500|
|Estimated total||$150 to $21,500|
Other expensesMiscellaneous expenses for Tim Hortons total $32,500 — less than the nationwide average of $69,970.
|Additional funds||$25,000 to $40,000|
|Estimated total||$25,000 to $40,000|
How to financeSince the estimated total for Tim Hortons is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Tim Hortons franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Tim Hortons about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $1,183,575 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?You have several options when it comes to financing a Tim Hortons — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Tim Hortons opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Compare small business lendersYou may not need financing to cover the estimated $298,650. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Tim Hortons stacks upCompare how Tim Hortons holds up against two similarly sized franchises.
|Ace Hardware||Tim Hortons||Snap-on Tools|
|Average Franchise fees||$5,000||$32,500||$49,500|
|Average Equipment fees||$92,500||$255,000||$96,800|
|Average Real estate fees||$112,500||$817,750||NA|
|Average Training fees||$18,865||$11,000||NA|
|Average Inventory fees||$301,250||$15,500||$112,200|
|Average Marketing fees||NA||$2,750||NA|
|Average Licenses and permits fees||NA||$5,750||$1,300|
|Average Insurance fees||$15,000||$10,825||$1,250|
|Average Admin fees||$9,000||NA||$1,200|
|Average Personnel fees||NA||NA||NA|
|Average Other fees||$87,500||$32,500||NA|
Bottom lineTim Hortons franchise costs run a total of $1,183,575. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.
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