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Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Arizona Bread Company 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 | $149,000 - $341,500 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 4.5% | 5% |
Advertising Fee | 4% of Gross Sales | - |
Year Founded | 1964 | 1994 |
Year Franchised | 1965 | 2002 |
Term Of Agreement | 10 years | 20 years |
Term Of Agreement | 10 years | 20 years |
Renewal Fee | - | 1/2 of current franchise 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/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, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Ad slicks, Regional advertising | Co-op 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) |
Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 13 - 15
Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
The Arizona Bread Company began in 1994 and immediately established itself as the premier bakery/cafe in Scottsdale Arizona.
We are a fast casual artisan bakery offering breads, made from scratch soups, gourmet sandwiches and desserts in an engaging environment and featuring award-winning food. Arizona Bread Company uses only the freshest ingredients using no preservatives, additives, bases or conditioners. Every sandwich is prepared to order so it is served at its freshest. We have evolved into a rather unique niche offering alternatives to traditional fast food concepts.
Arizona Bread has consistently been recognized as the premier
purveyor of quality breads in the Metro Phoenix Area since 1994 as
evidenced by our numerous awards and customer loyalty base.