Dunkin' vs Tim Hortons Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Dunkin' vs Tim Hortons including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Dunkin' Franchise
Tim Hortons Franchise
Investment $199,700 - $1,688,200$135,300 - $2,068,500
Franchise Fee $40,000 - $90,000$35,000
Royalty Fee 5.9%4.5%
Advertising Fee 5%4% of Gross Sales
Year Founded 19501964
Year Franchised 19551965
Term Of Agreement -10 years
Term Of Agreement -10 years
Renewal Fee --


Business Experience Requirements
 
Dunkin' Franchise
Tim Hortons Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

    • *An entrepreneurial drive and ability to build a high performing team. *Prior management experience. Experience in food service and/or restaurant operations is a plus. *A lifestyle that allows for the time commitment required to launch and build a franchise restaurant. *Net worth of $500,000 and liquidity in the amount of $300,000 (The full investment from a Tim Hortons could be over $1,600,000) *A personal passion and commitment to the development of the Tim Hortons brand. *Ability to exemplify and execute the Tim Hortons principles and standards of operation on a daily basis. *Understand the importance of being a community partner that is proud to represent Tim Hortons.

    Financing Options
     
    Dunkin' Franchise
    Tim Hortons Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Dunkin' Franchise
    Tim Hortons Franchise
    Training Prior to opening your first Restaurant, you (one person) must attend a 3-day franchise business course conducted throughout the year in the Boston, Massachusetts, area. Following completion of that course, both the franchisee candidate and a designated representative must complete the Dunkin' Donuts Core Initial Training program, which includes classroom/instructional time that may be held at Dunkin' Brands University in Braintree, Massachusetts, or Orlando, Florida, or in a designated training Restaurant. Some of our required classes are only offered on the Internet as web-based training. On-The-Job Training: 244-354 hours Classroom Training: 45-54 hoursNew franchisees undergo an intensive seven week training program at the Tim Hortons University, located next to the Oakville, Ontario, head office. The facility includes classrooms and a fully operational Restaurant, providing trainees with intensive hands-on experience in the preparation of all Tim Hortons products. Strong emphasis is placed on food handling and hygiene procedures, Team Member relations, equipment maintenance and in-Restaurant security systems. * Seven (7) week training program in the Oakville, Ontario, at Tim Hortons University * A Restaurant opening crew/Manager of Operations Standards (MOS) to assist the opening of the Tim Hortons Restaurant (for a maximum period of two weeks)
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appAd slicks, Regional advertising
    Operations

    Absentee ownership of franchise is NOT allowed.

    		 58% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 25 - 30

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Dunkin' Franchise
    Tim Hortons Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Dunkin'

    In 1946, Bill Rosenberg established Industrial Luncheon Services, an organization that conveyed suppers and snacks to specialists in the Boston region. The accomplishment of Industrial Luncheon Services persuaded Rosenberg to begin The Open Kettle, a donut shop in Quincy, Massachusetts. After two years, The Open Kettle changed its name to Dunkin' Donuts.

    Today, Dunkin' Donuts stores can be found in more than 32 nations, and they serve 70 assortments of doughnuts, alongside hot and cool espresso drinks, bagels, breakfast sandwiches and other heated products. Dunkin' Donuts parent organization, Dunkin' Brands Inc., additionally establishments Baskin-Robbins, and the two ideas are once in a while co-branded.

    September of 2018 Dunkin' Donuts rebranded to just Dunkin' .

    20% off franchise fee for first five traditional restaurants

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    About Tim Hortons

    Tim Hortons is one of North America's largest developers and franchisors of quick service restaurants and one of the largest publically traded restaurant chains in North America based on market capitalization. Founded in 1964 in Hamilton, Ontario, Canada, Tim Hortons is one of the fastest growing coffee and bakery franchises in America and an industry leader in same stores sales with more than 4,000 restaurants worldwide (as of April 1, 2013). Today, our U.S. restaurants are primarily located in New York, Michigan, Ohio, Indiana, Pennsylvania, West Virginia and Maine. We have plans to grow our franchise opportunities throughout the U.S. in the coming years. We are far beyond coffee and donuts.Tim Hortons Cafe & Bake Shops is proud to serve "Always Fresh Premium Coffee," the coffee that has made us famous, as well as our always fresh baked goods, home-style soups, fresh sandwiches and wraps, hot breakfast sandwiches and specialty teas. We offer a variety of menu items that entice guests to visit our restaurants during all day parts including breakfast, lunch, dinner and the fastest growing category is the QSR category, late night snacking. From full-service restaurant franchises, to custom-built kiosks and a wide range of non-traditional venues, we build our restaurants to fit anywhere while maintaining the exceptional quality, freshness, convenience customers expect. Tim Hortons Cafe & Bake Shops have become a daily ritual in the lives of our guests through the quality and value of our products. This brand loyalty has been earned in partnership with franchisees, which we call our restaurant owners, by delivering superior products and services to our guests and communities through leadership, innovation and partnerships.

    The total investment necessary to begin operation of a Tim Hortons franchise under a Franchise Agreement (excluding real property) ranges from $298,650 to $1,394,000 for a Non-Standard Shop/Kiosk, and from $1,009,000 to $2,068,500 for a Standard Shop. This includes $103,100 to $496,400 for a Non-Standard Shop/Kiosk and $389,600 to $511,400 for a Standard Shop that must be paid to the franchisor or an affiliate.
    The total investment necessary to begin operation of a Co-Branded Restaurant franchise under a Franchise Agreement (excluding real property) ranges from $695,500 to $1,837,400 for a newly-built Co-Branded Restaurant and from $135,300 to $219,600 for a Tim Hortons restaurant that is renovated to become a Co-Branded Restaurant. This includes $466,000 to $686,500 for a newly-built Co-Branded Restaurant and $5,500 to $177,600 for a Tim Hortons restaurant that is renovated to become a Co-Branded Restaurant that must be paid to the franchisor or an affiliate.
    "Top  ""

    Tim Hortons is the # 1 Canadian franchise for 2020.


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