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Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Baker Bros. American Deli including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $135,300 - $2,068,500 | $430,500 - $656,000 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 4.5% | 4% |
Advertising Fee | 4% of Gross Sales | - |
Year Founded | 1964 | 1998 |
Year Franchised | 1965 | 2000 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | $5K |
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. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
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 | * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Ad slicks, Regional advertising | Ad slicks, Regional advertising |
Operations |
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) |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 15 - 18
Absentee ownership of franchise is allowed. |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
The Baker Bros believe that they have one of the most franchisee-friendly programs in their industry. Baker Bros is franchised through an Area Development Agreement that generally requires a 2 to 5 store minimum for individual franchisees. The Area Development Agreement covers an exact geographical area, franchise terms and conditions, number of units to be opened under the agreement and other details of the franchise program. Baker Bros offers an extensive Franchise Support Program. Tom and Ken are always available to assist you and to answer any questions that you might have. In addition, one of our Franchise Advisors will come to your store periodically to provide personal assistance from Baker Bros. Whatever you might need, there will always be a person at Baker Bros who can help you.