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Below is an in-depth analysis and side-by-side comparison of Mocha Delites vs Tim Hortons including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $53,500 - $232,500 | $135,300 - $2,068,500 |
Franchise Fee | $22,500 | $35,000 |
Royalty Fee | 5% | 4.5% |
Advertising Fee | - | 4% of Gross Sales |
Year Founded | 2000 | 1964 |
Year Franchised | 2001 | 1965 |
Term Of Agreement | 5 years | 10 years |
Term Of Agreement | 5 years | 10 years |
Renewal Fee | $10K | - |
Business Experience Requirements |
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Experience | *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. |
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Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | New 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 | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | * 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 slicks, Regional advertising |
Operations |
Franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 4 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
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 |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
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