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
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
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.
3 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. For the wider coffee-shop financing landscape beyond this one brand, see coffee shop industry financing and coffee shop equipment financing options.
4 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.
5 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.
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.
