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Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Java Detour 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 | $276,000 - $400,000 |
Franchise Fee | $35,000 | $25,000 - $35,000 |
Royalty Fee | 4.5% | 4-6% of gross sales |
Advertising Fee | 4% of Gross Sales | 1-3% of total gross sales. |
Year Founded | 1964 | 1995 |
Year Franchised | 1965 | 2000 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal 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 | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | 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 | * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business | - |
Marketing | 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) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
Java Detour is "changing the way America buys coffee" - The company's objective is to establish the Java Detour concept and brand as one of the most recognized and successful gourmet beverage retailers in the world. In addition to their delicious fresh coffee that they roast, Java Detour offers both hot and iced blended espresso drinks, fresh fruit smoothies, shakes, a full line of whole leaf teas, a full-service kids menu, and freshly roasted bulk coffee. Java Detour offers four different store footprints for franchisees to choose from including a 600 square-foot double drive-through store, a stand-alone 1,300 square-foot single drive-through with inside seating, a 1,300 square-foot end-cap single drive-through with inside seating, and kiosks used for shopping malls, airports, casinos, hotel lobbies, and more.