Skip to main content
ClearValue Lending
Guide 9 min read Updated May 6, 2026

Cost to Start a Tim Hortons Franchise in 2026

Tim Hortons franchise startup costs run $1.1M–$1.8M for a full-service coffee and donut QSR. The brand is owned by Restaurant Brands International (RBI), also parent to Burger King and Popeyes.

Tim Hortons franchise costs at a glance

Total investment $1.1M–$1.8M
Franchise fee $50,000
Royalty 6%
Ad / marketing fee 4%
Liquid capital required $500,000
Net worth required $1.5M
Source: Tim Hortons Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.

Key takeaways

  • Total estimated startup cost: $1.1M–$1.8M (coffee + donut QSR with drive-thru)
  • Franchise fee: $50,000
  • Ongoing royalty: 6% of gross sales; advertising fund: 4%
  • Net worth requirement: $1.5M+; liquid capital requirement: $500K+
  • Parent company: Restaurant Brands International (RBI) — also Burger King and Popeyes
Ready to fund your Tim Hortons franchise?

Total startup cost breakdown

Per the current FDD, total estimated initial investment for a Tim Hortons franchise in the US runs $1,100,000–$1,800,000. The full-service production kitchen and real estate drive costs to the higher end of the QSR range:

  • Franchise fee: $50,000
  • Real estate and leasehold improvements: $400,000–$800,000 depending on whether the building is constructed, converted, or leased
  • Equipment (kitchen, drive-thru, brewing systems, display): $200,000–$350,000
  • Signage and exterior: $30,000–$70,000
  • POS and technology: $15,000–$30,000
  • Initial inventory: $15,000–$30,000
  • Training costs: $20,000–$40,000
  • Working capital: $50,000–$100,000
  • Miscellaneous and pre-opening: $30,000–$80,000

Ongoing fees and royalty structure

Tim Hortons franchisees pay a 6% royalty on gross sales plus a 4% advertising fund contribution. The advertising fund supports national and regional marketing campaigns. RBI operates a shared marketing infrastructure across its brands; Tim Hortons franchisees benefit from corporate-level media buying and digital marketing investment that individual franchisees could not replicate independently.

Net worth and liquid capital requirements

Tim Hortons requires prospective franchisees to demonstrate net worth of $1,500,000 or more and liquid capital of $500,000 or more. These are among the higher thresholds in the QSR franchise category, reflecting the full-service production kitchen model and real estate requirements. RBI has a preference for multi-unit operators with existing QSR experience for US expansion markets.

Financing options

Tim Hortons is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. At the $1.1M–$1.8M investment range, SBA 7(a) and SBA 504 are both relevant:

  • SBA 7(a) loan: Up to $5M; covers franchise fee, equipment, leasehold improvements, working capital. Standard path for franchise financing at this investment size.
  • SBA 504 loan: Particularly useful if the franchisee is purchasing real estate or undertaking major construction — 504 covers fixed-asset acquisition at lower rates with longer terms.
  • Conventional commercial real estate loan: For site acquisition or construction, some lenders provide non-SBA commercial real estate financing.
  • Equipment financing: Kitchen equipment and drive-thru systems can be financed separately to reduce the SBA loan balance.
  • Working capital line of credit: Useful post-opening for inventory and payroll management.

What lenders look for in a Tim Hortons franchise application

Tim Hortons is on the SBA Franchise Directory, enabling expedited eligibility review for SBA-approved lenders. At $1.1M–$1.8M, the full-service production kitchen and drive-thru format places this in the high-investment QSR tier. Key factors lenders evaluate:

  • Debt service coverage ratio (DSCR): SBA guidelines require 1.15× minimum. Lenders typically require 1.25×–1.35× on full-service production kitchen builds of this size. Tim Hortons' dual-revenue model (coffee + baked goods) needs pro forma documentation that segments daypart revenue realistically and shows debt service coverage from early operations.
  • Equity injection: SBA minimum is 10% of total project cost. Lenders typically require 20–25% on builds at this investment level — on a $1.4M project, $280K–$350K in documented borrower equity. Borrowed equity (HELOCs, 401(k) loans) does not qualify as equity injection under SBA rules.
  • Net worth and liquid capital: RBI's thresholds ($1.5M+ net worth, $500K+ liquid) are higher than most QSR franchises, reflecting the production kitchen capital intensity. Lenders independently verify these on a current personal financial statement.
  • QSR operations experience: RBI has a stated preference for multi-unit operators in US expansion markets. Lenders mirror this — candidates with documented QSR management history and a business plan that addresses the US market expansion positioning have stronger underwriting outcomes.
  • Production kitchen complexity: Unlike coffeehouse-only concepts, Tim Hortons requires a full baked goods production kitchen with proofing and baking equipment. Lenders familiar with this model will assess whether the operator has the food-service operations background to manage scratch baking production.

Apply at ClearValue Lending

ClearValue Lending works with QSR franchisees on SBA 7(a) and 504 structures for full-service restaurant concepts. Start at small business financing or apply at Find my match. Your file routes to the funding partners best matched to your file. Use our SBA loan payment calculator to model monthly payments.

Sources

  • Tim Hortons is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
  • SBA 7(a) loans finance franchise startups including real estate, equipment, and working capital needs. — SBA 7(a) Loan Program
  • SBA 504 loans finance fixed assets including real estate and major equipment for eligible small businesses. — SBA 504 Loan Program
  • All Tim Hortons franchise cost and fee data derives from the current Franchise Disclosure Document (FDD) filed under the FTC Franchise Rule. — FTC Franchise Rule — Buying a Franchise: A Consumer Guide
  • The Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources QSR small employer firms use to fund startup and build-out costs at this investment tier. — Federal Reserve — Small Business Credit Survey

Frequently asked questions

How much does a Tim Hortons franchise cost in 2026?
Per the current FDD, total estimated initial investment for a US Tim Hortons franchise runs $1,100,000–$1,800,000. Real estate and kitchen equipment are the primary cost drivers. The franchise fee is $50,000.
Who owns Tim Hortons?
Tim Hortons is owned by Restaurant Brands International (RBI), the same parent company that owns Burger King and Popeyes. RBI is publicly traded on the NYSE and TSX.
Is Tim Hortons expanding in the US?
Yes. As of 2026, Tim Hortons has been actively expanding its US store count, focusing on drive-thru-oriented locations in the Midwest, Northeast, and Southeast markets.
Can I use an SBA loan for a Tim Hortons franchise?
Yes. Tim Hortons is on the SBA Franchise Directory. SBA 7(a) and 504 programs are both viable at the $1.1M–$1.8M investment range.
What is the royalty rate for a Tim Hortons franchise?
Tim Hortons charges a 6% royalty on gross sales plus a 4% advertising fund contribution, totaling 10% of gross revenue.
What DSCR do lenders require for a Tim Hortons franchise SBA loan?
SBA guidelines set a minimum DSCR of 1.15× — the business must generate $1.15 in cash flow for every $1.00 in annual debt service. In practice, lenders underwriting full-service production kitchen QSR builds in the $1.1M–$1.8M range typically require 1.25×–1.35× to account for the construction ramp period. Tim Hortons' dual-revenue model (coffee + baked goods) should be documented in the pro forma with realistic ramp assumptions by daypart. Source: SBA SOP 50 10 8 (sba.gov).
How much equity injection do I need for a Tim Hortons SBA loan?
SBA requires a minimum 10% equity injection of total project cost. On Tim Hortons full-service builds, lenders typically require 20–25% borrower equity — on a $1.4M project, that's $280K–$350K. Equity can come from personal savings or ROBS (retirement account rollover); borrowed equity does not qualify under SBA rules. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.
What are the net worth and liquid capital requirements for a Tim Hortons franchise?
Tim Hortons requires a minimum net worth of $1,500,000 and liquid capital of $500,000 or more — among the higher thresholds in the QSR category, reflecting the full-service production kitchen model and real estate requirements. RBI has a stated preference for multi-unit operators with existing QSR experience for US expansion markets.
Summary:

Tim Hortons franchise startup costs run $1.1M–$1.8M for a full-service coffee and donut QSR. The brand is owned by Restaurant Brands International (RBI), also parent to Burger King and Popeyes.

This article is for educational purposes and is not financial, legal, or tax advice. Rates, fees, qualification requirements, and product availability are illustrative ranges that vary by lender, market conditions, and individual business profile. ClearValue Lending is a funding platform; all financing is subject to lender partner approval and terms. Always read your contract end-to-end and verify specific numbers before signing.

https://clearvaluelending.com/franchises/tim-hortons/cost-to-start

Compare more franchise costs

Cost to Start a Cold Stone Creamery Franchise in 2026

Cold Stone Creamery franchise startup costs run $307K–$522K for a premium ice cream shop with custom mix-ins. The brand is owned by Kahala Brands, which also operates several other dessert and QSR concepts.

Read more →

Cost to Start an AAMCO Franchise in 2026

AAMCO franchise startup costs run $256K–$365K for a transmission repair and total car care center. The business model includes a notable insurance and fleet reimbursement revenue mix alongside retail customer work.

Read more →

Jiffy Lube Franchise Cost (2026): $214K–$444K Quick-Lube

Jiffy Lube franchise startup costs run $214K–$444K for a quick-lube oil change and preventive maintenance concept. The brand is owned by Shell and operates more than 2,000 US locations.

Read more →
See your options

Free · Takes ~5 min · No spam