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 is a Canadian quick-service restaurant brand founded in 1964, known for coffee, donuts, and baked goods. In Canada, Tim Hortons is the largest QSR chain by store count. The US footprint is smaller but growing, with expansion focus on markets in the Midwest, Northeast, and Southeast. The brand was acquired by Restaurant Brands International (RBI) in 2014 — the same holding company that owns Burger King and Popeyes. Tim Hortons units typically include a drive-thru lane and full kitchen production for freshly baked goods, which drives investment costs above coffeehouse-only concepts.
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:
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.
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.
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:
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:
For Tim Hortons locations involving owned real estate, the standard SBA structure layers 504 (land and building) with 7(a) (equipment, leasehold improvements, franchise fee, working capital). For leased locations, SBA 7(a) alone typically covers the full project. Brewing systems and commercial baking equipment are Section 179-eligible in the year placed in service, reducing net equipment cost.
ClearValue Lending works with QSR franchisees on SBA 7(a) and 504 structures for full-service restaurant concepts. Apply at Find my match. Your file routes to one matched lender. Use our SBA loan payment calculator to model monthly payments.
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.
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.
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.
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.
Tim Hortons charges a 6% royalty on gross sales plus a 4% advertising fund contribution, totaling 10% of gross revenue.
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 7 (sba.gov).
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 7, Subpart B, Chapter 4.