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Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Sandwich Tree Restaurants 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 | $90,000 - $120,000 |
Franchise Fee | $35,000 | $10,000 - $17,500 |
Royalty Fee | 4.5% | 5% |
Advertising Fee | 4% of Gross Sales | 3% |
Year Founded | 1964 | 1978 |
Year Franchised | 1965 | 1979 |
Term Of Agreement | 10 years | 5 years +5 |
Term Of Agreement | 10 years | 5 years +5 |
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) | Headquarters 2 Weeks |
Support | * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business | Central Data Processing: At Additional Cost Central Purchasing Field Operation Evaluation Field Training Initial Store Opening Inventory Control Franchisee Newsletter Regional or National Meetings 800 Telephone Hotline |
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) | Average Number of Employees: 4 Full-time, 7 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | Yes |
International Expansion | Yes | - |
The challenges and rewards of operating your own business are like no other. Franchising will not reduce the fear of taking the next step into operating a business. It will not reduce the time and effort necessary to create success. What franchising offers is a business format that allows you to capitalize on the results of others. It affords the opportunity to be fully equipped to launch and grow within a proven concept. Sandwich tree provides a full service of tools, training, and support to compliment your efforts. The level of independence and success you achieve will be up to you. The benefits associated with Sandwich Tree and the information needed to make an informed decision about your business future are available for the asking. For further information, simply call 604-220-4566