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Updated RecentlyTim Hortons vs Dunn Bros Coffee Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Dunn Bros Coffee 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 | $406,300 - $608,500 |
| Franchise Fee | $35,000 | $37,500 |
| Royalty Fee | 4.5% | 5% |
| Advertising Fee | 4% of Gross Sales | 3% |
| Year Founded | 1964 | 1987 |
| Year Franchised | 1965 | 1994 |
| Term Of Agreement | 10 years | 10 years |
| Term Of Agreement | 10 years | 10 years |
| Renewal Fee | - | 25% of current fee |
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/No |
| Equipment | No/No | 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) | On-The-Job Training: 270-420 hours Classroom Training: 46-61 hours Additional Training: As needed |
| Support | * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
| Marketing | Ad slicks, Regional advertising | Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
| 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) |
30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership will be considered, but is not preferred Number of Employees Required to Run: 10 - 20 |
Expansion Plans |
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| US Expansion | Yes | No |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
About Tim Hortons
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.
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About Dunn Bros Coffee
Dunn Bros Coffee was founded in 1987 by Ed and Dan Dunn, who opened their
first store in St. Paul, Minnesota. The second location opened in 1991
in downtown Minneapolis. Since then, Dunn Bros Coffee has expanded steadily, to
more than 70 locations, first to Texas in 2004, then to other states,
including Wisconsin, Iowa and Missouri, North and South Dakota,
Tennessee, Kansas, and Nebraska.
A Dunn Bros Coffee franchise is a surefire business opportunity. The support team at Dunn Bros Coffee has decades of experience and expertise in all aspects of successful coffee shop operations, construction, marketing and franchising. In fact, members of their team have been franchisees, so they know what others need to succeed. The franchise experience at Dunn Bros Coffee starts with the top-quality training and support, and Dunn Bros Coffee dedicates the resources to ensure franchisees’ receive the skills and knowledge they need to create the high standard Dunn Bros Coffee shop. After opening, Dunn Bros Coffee provide ongoing support with a franchise business manager, continual assistance with operations, and training in business management, customer service, merchandising and more.
Seeking new franchise units in Iowa, Kansas, Minnesota, Missouri, North Dakota, South Dakota, Tennessee, Texas and Wisconsin