Tim Hortons vs P.J.'s Coffee Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs P.J.'s Coffee including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Tim Hortons Franchise
P.J.'s Coffee Franchise
Investment $135,300 - $2,068,500$173,275 - $582,000
Franchise Fee $35,000$25,000 - $35,000
Royalty Fee 4.5%5%
Advertising Fee 4% of Gross Sales2%
Year Founded 19641978
Year Franchised 19651989
Term Of Agreement 10 years10 years +10 +10
Term Of Agreement 10 years10 years +10 +10
Renewal Fee --


Business Experience Requirements
 
Tim Hortons Franchise
P.J.'s Coffee Franchise
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.

A minimum of $75,000 in liquid capital (available cash) and at least $300,000 in net worth. In addition, you must be able to dedicate the necessary time to evaluate the franchise system with an executive in order to make a decision within four to eight weeks.

Financing Options
 
Tim Hortons Franchise
P.J.'s Coffee Franchise
  In-House/3rd PartyIn-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
 
Tim Hortons Franchise
P.J.'s Coffee Franchise
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: 113 hours Classroom Training: 23 hours
Support * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service businessPurchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Ad slicks, Regional advertising Co-op 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)

The general operating hours of a PJ's Coffee are from 6 a.m. to 9 p.m. The average PJ's Coffee staff consists of 12 - 16 part-time employees total, with a minimum of two or three per shift.

Expansion Plans
 
Tim Hortons Franchise
P.J.'s Coffee Franchise
US Expansion Yes-
Canada Expansion No-
International Expansion Yes-

Company Overviews

About Tim Hortons

Tim Hortons is one of North America's largest developers and franchisors of quick service restaurants and one of the largest publically traded restaurant chains in North America based on market capitalization. Founded in 1964 in Hamilton, Ontario, Canada, Tim Hortons is one of the fastest growing coffee and bakery franchises in America and an industry leader in same stores sales with more than 4,000 restaurants worldwide (as of April 1, 2013). Today, our U.S. restaurants are primarily located in New York, Michigan, Ohio, Indiana, Pennsylvania, West Virginia and Maine. We have plans to grow our franchise opportunities throughout the U.S. in the coming years. We are far beyond coffee and donuts.Tim Hortons Cafe & Bake Shops is proud to serve "Always Fresh Premium Coffee," the coffee that has made us famous, as well as our always fresh baked goods, home-style soups, fresh sandwiches and wraps, hot breakfast sandwiches and specialty teas. We offer a variety of menu items that entice guests to visit our restaurants during all day parts including breakfast, lunch, dinner and the fastest growing category is the QSR category, late night snacking. From full-service restaurant franchises, to custom-built kiosks and a wide range of non-traditional venues, we build our restaurants to fit anywhere while maintaining the exceptional quality, freshness, convenience customers expect. Tim Hortons Cafe & Bake Shops have become a daily ritual in the lives of our guests through the quality and value of our products. This brand loyalty has been earned in partnership with franchisees, which we call our restaurant owners, by delivering superior products and services to our guests and communities through leadership, innovation and partnerships.

The total investment necessary to begin operation of a Tim Hortons franchise under a Franchise Agreement (excluding real property) ranges from $298,650 to $1,394,000 for a Non-Standard Shop/Kiosk, and from $1,009,000 to $2,068,500 for a Standard Shop. This includes $103,100 to $496,400 for a Non-Standard Shop/Kiosk and $389,600 to $511,400 for a Standard Shop that must be paid to the franchisor or an affiliate.
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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Tim Hortons is the # 1 Canadian franchise for 2020.


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About P.J.'s Coffee

Founded in New Orleans, PJ's has been brewing it's distinguished brand of signature roasts for over 25 years. Our beans are hand-selected, hand-roasted and brewed to perfection. PJ's also offers breakfast selections and a variety of gourmet pastries and desserts.

The franchise fee is $30,000 for a single unit, $65,000 for three units and $100,000 for five units.
The franchise fee provides you with a license to operate a PJ’s, our assistance to help you open a location, access to our recipes, products, technology, training systems, operational structure, marketing programs, and more.

 We offer a Military Discount of 20% off the total franchise fee for qualified military candidates.

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In Franchise Business Reviews Top 200.


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#478 in Franchise 500 for 2020.