Entrepreneurship & Small Business

Typical income of tim hortons? alot or a little?

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  • Jan 13th, 2012 11:25 am
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[OP]
Deal Guru
Jun 11, 2005
12069 posts
1097 upvotes
Toronto

Typical income of tim hortons? alot or a little?

after expenses, labour costs etc... What is the average expected income for the owner from opening up a tim hortons? considering business is smooth?
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Aug 19, 2001
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Vancouver
we cannot know what you personally think is "a lot or a little" so it's an impossible question to ask.

Income can vary a LOT between stores, a 30% increase in business after a certain threshold can double your income. How much you make mostly depends on your sales, lease rate, and expenses in particular LABOUR. You'll pay a lot more for labour in alberta than you will in nova scotia!

Most business owners are a little coy about how much money they actually make. if you are seriously interested in opening a franchise though you should approach owners directly and ask them how business is for them.

If they give you a ballpark on their sales, tell you their lease rates and labour/food costs, then you can get a good estimate on the profit they're making.
Sr. Member
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Oct 18, 2006
526 posts
Toronto
Sales, lease rate and expenses all depend upon one thing, LOCATION.
Good location = more sales, more expensive rent, more expenses in general.
Bad location = crappier sales, less expensive rent, less expenses in general.
Plus there really isnt much besides location that allows one Tim Hortons to make more money then the other since there are extremely strict guidlines that franchisees must follow, which in turn doesnt allow one Tim Hortons to be dirtier then the other, have better service then the other etc etc. So to answer the OP's question, what they make all depends on the location so the range is probably as huge as 2 or 300k-1mill a year.
grant wrote:
Aug 12th, 2007 9:06 pm
How much you make mostly depends on your sales, lease rate, and expenses in particular LABOUR. You'll pay a lot more for labour in alberta than you will in nova scotia!
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Feb 25, 2004
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It will costs over $420,000 to get a franchise

They don't release projected revenue statement to a franchisee until they are almost hooked but you could probably look at other franchises and figure out what a "reasonable" rate of return would be

It is almost impossible to get a franchise in Canada outside of Quebec (http://www.timhortons.com/en/join/franchise_ca.html)
[OP]
Deal Guru
Jun 11, 2005
12069 posts
1097 upvotes
Toronto
CheapScotsman wrote:
Aug 13th, 2007 2:01 am
It will costs over $420,000 to get a franchise

They don't release projected revenue statement to a franchisee until they are almost hooked but you could probably look at other franchises and figure out what a "reasonable" rate of return would be

It is almost impossible to get a franchise in Canada outside of Quebec (http://www.timhortons.com/en/join/franchise_ca.html)
damn that sucks.
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Aug 19, 2001
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It doesn't really suck, I wouldn't want to throw away my life on a TimH's franchise. They (like subway) are the ultimate in "buy yourself a job" franchises... definitely not a very likely way to get rich.
Deal Expert
May 30, 2005
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Richmond Hill
CheapScotsman wrote:
Aug 13th, 2007 2:01 am
It will costs over $420,000 to get a franchise

They don't release projected revenue statement to a franchisee until they are almost hooked but you could probably look at other franchises and figure out what a "reasonable" rate of return would be

It is almost impossible to get a franchise in Canada outside of Quebec (http://www.timhortons.com/en/join/franchise_ca.html)
$420K? It'll cost you over $1mil for a Timmy's franchise...
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Oct 16, 2001
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Jon Lai wrote:
Aug 13th, 2007 1:42 pm
$420K? It'll cost you over $1mil for a Timmy's franchise...
Yep. We looked into it a few years ago. Plus they tell you were to put it, you cant just say it would work great somehwre, they have that decision. Plus the people that have the Tim Hortons in that are or city have first choice if they want to start another.

I have a friend in Regina who started one. After the first year or so it was paid of. He hired someone to manage the place, he come sin occasionly. He walks home with over $300K a year after all that.
TOTAL WINNINGS TO DATE = $99,719.87
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Feb 25, 2004
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New Westminster
Jon Lai wrote:
Aug 13th, 2007 1:42 pm
$420K? It'll cost you over $1mil for a Timmy's franchise...
$1mil is over $420k and while some MIGHT get this high, most are probably quite a bit less (not that the OP can afford either anyways)

From the Tim Hortons website: http://www.timhortons.com/en/join/franc ... q.html#one
How much does it cost to purchase a Tim Hortons franchise?

The cost of a full Canadian franchise varies from $420,000 to $450,000* (CDN$) (plus all applicable taxes). At least $135,000 of the franchise cost must be unencumbered (cash or liquid assets), in addition to $50,000 in working capital (also unencumbered). The remaining amount may be financed through the chartered banks, upon 'approval' of a franchise.

* The cost of a Tim Hortons license may exceed $450,000 in certain locations due to higher development costs.
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Aug 19, 2001
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The figures on franchisors sites are all WAY out of date. Maybe in 1998 you could open a TimH's for $420,000, but in the past 5-6 years construction costs have nearly DOUBLED, and that's the bulk of your start-up costs.

Also as real estate + construction costs have risen, leases have risen significantly too. I guess maybe up 50% in the same time? At least here in the lower mainland.

Spidey, your friend must be in a very lucky situation... I do know that TimH's has no protected radius, so they will happily open more and more stores near the successful ones, eating into your profits. (just like subway).

They don't care if their franchisees make a lot of money... they only care that they make enough not to go out of business... the more stores they open, the more total sales they make.
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Feb 25, 2004
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A friend contacted them about 6 months ago about starting a new franchise here in the lower mainland. He was told; there aren't any available

Here are some interesting tidbits from the "franchise" in Afghanistan: http://blog.trainofthoughts.ca/2006/11/ ... chise.html
  • It cost a 1million to get setup (Tim Hortons waived the franchise fee, royalties and provided free training, etc)
  • Its available to 2300 CDNs and 5000 personel from other countries
  • Profit is $5000 per day ($1.8 million per year)
Deal Expert
May 30, 2005
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Richmond Hill
CheapScotsman wrote:
Aug 13th, 2007 6:30 pm
A friend contacted them about 6 months ago about starting a new franchise here in the lower mainland. He was told; there aren't any available

Here are some interesting tidbits from the "franchise" in Afghanistan: http://blog.trainofthoughts.ca/2006/11/ ... chise.html
  • It cost a 1million to get setup (Tim Hortons waived the franchise fee, royalties and provided free training, etc)
  • Its available to 2300 CDNs and 5000 personel from other countries
  • Profit is $5000 per day ($1.8 million per year)
$5000 profit per day? Wow! That's like selling 2000+ cups of coffee...

If it really was that high, you could get all your investment back within the first year.. not bad.. plus also the potential of the value of the franchise to rise and make more money when you resell it..
Sr. Member
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Mar 14, 2007
719 posts
CheapScotsman wrote:
Aug 13th, 2007 6:30 pm
A friend contacted them about 6 months ago about starting a new franchise here in the lower mainland. He was told; there aren't any available

Here are some interesting tidbits from the "franchise" in Afghanistan: http://blog.trainofthoughts.ca/2006/11/ ... chise.html
  • It cost a 1million to get setup (Tim Hortons waived the franchise fee, royalties and provided free training, etc)
  • Its available to 2300 CDNs and 5000 personel from other countries
  • Profit is $5000 per day ($1.8 million per year)
wow, so opening a tim hortons in one year would allow you to profit... outrageous.
if this is true i gotta save up for a tim hortons...
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Jul 4, 2004
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trixstar wrote:
Aug 13th, 2007 2:24 am
damn that sucks.
There are way too many of them anyways. Eventually something will one day concur them just like how the telephone did in the morse code business. But it will be tough, no doubt.
Newbie
Aug 16, 2007
19 posts
Vancouver
From the posts above I gather that an owner would make anywhere from $200K to $1m per year. I think that's a decent return on an investment of $500K.

I recall looking into this issue a few years ago. You have to check their site to see in which areas they're offering franchise opportunities. Last time I checked there were none in my city.
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