Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average, High, and Low Gross Sales for Tim Hortons Standard Shops

by Franchise Chatter on July 11, 2012

in Coffee Franchise, Donuts Franchise, Franchise Earnings

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Highlights of Tim Hortons’ Item 19 Financial Performance Representations (2011 FDD)

  • Tim Hortons is a retail chain that sells coffee and other non-alcoholic beverages, baked goods, soups, sandwiches, and related products.
  • Depending on the type of retail store franchised, the estimated initial investment required to commence operation of a retail store ranges from $96,950 to $574,095 for a kiosk, from $329,300 to $558,900 for a drive-thru, and from $423,700 to $769,497 for a standard shop.
  • A limited number of retail stores, most of which will be existing Tim Hortons retail stores and/or existing Tim Hortons franchisees, may be offered the opportunity to supplement their store’s product mix by also selling selected Cold Stone Creamery products in addition to their Tim Hortons product offerings. The estimated total additional investment required to also sell Cold Stone Creamery products ranges from $110,100 to $185,500.
  • The following section describes the average gross sales in 2010 for 382 franchised standard Tim Hortons shops (or 63.9% of all franchised shops) that were open and operating for at least one year as of January 2, 2011.  The remaining franchised shops were not included because they opened after January 2, 2010 (20) or they were not standard shops (196).
  • As of January 2, 2011, 67.3% of the Tim Hortons system operated a standard shop, including 67.2% of franchised shops and 75% of Tim Hortons-owned shops.

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