Archive for March, 2013

Thinking of Buying a Tim Hortons….what you NEED to know!!!!

March 31, 2013 1 comment

coffee and donut

Add another 2 who changed their mind this week…Now $4,500,000 + saved and kept in families pockets to date….and counting!!! Thinking of purchasing a Tim Hortons? This site has the information you NEED TO KNOW…’s about the contract and the fact the pro-forma (break down of sales and profit) is a made up document!! That’s right, the document that shows what you could earn is not factual. One of the reasons why you would make the final decision to purchase a Tim Hortons is that document, that Tim Hortons knows nothing about….a sworn affidavit from the Manitoba Court of Queens bench states this. But did you also know that is not worth anything in the end, yes it is also stated in the contract what the business is worth, which is ZERO in less than 5 years!

Why would you buy a business that you cannot sell, the profits can only come from the day-to-day operations and NOT the resale of the business….yes that’s written in the contract!!

All the hard work and effort to build the business (your goodwill) is owned by Tim Hortons…stated in the contract!!

The value is pre-determined and the only one who can purchase the business in the first 5 years is….you guessed it Tim Hortons!!!

The business is worth less than $ZERO in 5 years…it’s in the contract!

You are buying a job, with great risk, and no ability to sell.

If you own a store and think you can sell or get out, you are so mistaken. Click on the link and watch our Dad undergoing cancer treatment, all he wanted to do was tell our families story….he died and couldn’t get out, and my family is now sharing this information in his honor.

This is serious stuff and not some story to be taken lightly. This is happening now across Canada, families are losing their entire life savings. I’m here to help and to make sure this doesn’t continue to happen. If you are a store owner getting default notices or in the process of losing your store, my family can help. We can tell you exactly what to do so you can get your money back. There is only one way to do this, and if you think you can negoitiate with Tim Hortons you will lose everything.

Take the contract to any lawyer but preferrably a contract lawyer (the clauses you need to know about are listed below).

Download the entire Tim Hortons contract… Tim Hortons Contract .pdf in full…this is the entire Agreement.

What about the fact you cannot sell the business or make any money from growing the business. Right in the contract it states;

Article 11 Transferability of Interest

Section 11.01 – Restrictions on Licensee’s Right to Transfer: The Licensee acknowledges that the rights and duties set forth in this Agreement are personal to the Licensee and that the Licensor has granted this license in reliance on the Licensee’s business skill and financial capacity. The Licensee therefore covenants with the licensor as follows:

(a) in the event the licensee wishes to sell, assign, transfer, convey or give away the Tim Hortons Shop business carried on at the Premises pursuant to this Agreement during the first (5) years of the term hereby granted, the Licensee shall do so only by offering to resell the Tim Hortons Shop business to the Licensor at the depreciated value of the furniture, equipment, and signs, and “depreciated value” shall be as herein defined in subparagraph and 12.02(i). The Licensor shall have the option of repurchasing said business in accordance with this subsection within (30) days of receipt of written notice from the Licensee advising it wishes to sell the business. In the event the licensor does not exercise its option to repurchase the business in accordance with this subsection, the Licensee shall have the right to sell the business to a third-party at the purchase price set out in this subsection and in accordance with the terms of Section 11.02;

Tim Hortons is the only one who can purchase the business. No money for building the sales, this will happen to every store owner you see. They do not pay anything for the store. You can contact the site and we have the actual calculation Tim Hortons uses to depreciate the store. In the first year you will lose 25% of the purchase price and by 5 years the business has no value.

Section 11.02 (3)

Notwithstanding any other clause in this agreement to the contrary, the Licensee acknowledges that it is the policy of the Licensor (Tim Hortons) that the profitability of the Tim Horton Shop business should be derived from the day to day operations of the business and not from the resale of the business. The Licensee therefore covenants and agrees that the licensor may arbitrarily withhold its consent to any transfer of this Agreement in whole or in part if it feels that in its sole and absolute discretion the sale or transfer price to be paid by any proposed transferee is such that the proposed transferee will not be maintaining a cash flow consistent with the proforma-stated operating results contained in the Confidential Operating Manual, normalized as considered necessary by the Licensor acting in a reasonable manner, or if such transfer price is not consistent with the then current selling price of a Tim Hortons shop adjusted for the number of years remaining in this Agreement and for the ratio of its sales level to the preceding calendar year’s average store sales level of the “Tim Hortons System”

Section 6.05– Inurement Solely to Licensor: The licensee agrees that all goodwill associated with the “TIM HORTONS SYSTEM” and identified by the Licensor’s Trademarks used in connection therewith shall inure directly and exclusively to the benefit of the licensor and is the property of the Licensor and that upon expiration or termination of the Agreement, no monetary amount shall be assigned as attributable to any goodwill associated with any of the Licensee’s activities in the operation of the Tim Hortons Shop licensed herein,or the Licensee’s use of the Licensor’s Trademarks.

What this means if you own a store, take what Tim Hortons will give you (most store owners paid little to nothing for their stores, some will pay to have the store taken back) as you will not be able to sell. Interesting how it states right in the contract to not expect your profit from the sale of the store. Who would buy a Tim Hortons if you already know before hand that you will receive nothing for it. Stated right in the contract!!

Do you think buying a Tim Hortons is a good decision for your family???

Please comment and tell us what you think.

Categories: Uncategorized

Tim Hortons Franchise Facts

March 19, 2013 1 comment

Investors of Tim Hortons, are you aware of the growing problems and the sheer number of stores that are currently in trouble. Do you knowcoffee-and-donuts what the contract of every franchisee has written in it? You realize that every store is worthless in less than 5 years? These clauses are written in the contract that every store owner signs. The other interesting clause is the one that states all good will (your hard work and effort to build the business and increase the sales) is owned by Tim Hortons…yes that is stated right in the contract!

To see these FACTS (the entire contract is available for download) and many more documents continue viewing the site.

Other interesting facts; Population of Canada over 15: 28 827 932

Number of Tim Hortons: ÷ 3 365

Number of Tim Hortons per consumer: 8566

So that’s 1 Tim Hortons store for every 8566 Canadians. Can you say SATURATION!!!!

Stock Analyst say 4000 is the maximum number of stores that Tim Hortons can put in Canada…..that would be 1 Tim Hortons store for every 7206 Canadians! Have you seen where Tim Hortons is now opening stores? Tim Hortons is putting stores now in small communities across Western Canada with populations less than 5000 people! 

What about the current store owners being asked to renovate their worthless store for over $100,000 when in actuality the cost is nowhere near that. In fact we have the costs from the former head of construction that shows Tim Hortons is pocketing more than half the value of the renovation! We have spoken to the former head of construction and know the store owners are being forced to renovate at these high costs and they have no power to say no as it is also written in the contract….a mandatory renovation, a small one after 5 years and a major one after 10 years. I wonder if any of these owners realize that it states right in the contract that the Tim Hortons business cannot be advertised for sale and that the value is already predeternmined….which is less than zero in 5 years and the only one allowed to purchase the business in the first 5 years is…you guessed it Tim Hortons!!

I states in the contract that the money you earn should come from the-day-to day sales and not the resale of the Tim Hortons business! Who would buy a business knowing they cannot sell it for a profit when they leave, the value is predetermined, and the only way to make money is from thee day-to-day sales. Yes it states that right in the contract!

Do you know what the average ticket is at a Tim Hortons? The average ticket is around $2.00  So in order to generate $1,000,000 (one million) in sales you need 500,000 customers ÷ 364 days (closed Christmas) = 1370 transactions per day. This means you need to take the money, give change, get the order, 1370 times per day…..the store my family owned had a breakeven of over $1.2 million which means that it would lose money having 1370 customers each day.

FACTS, Tim Hortons spins what they want to the media and they accept it as FACT…why are hospital locations losing millions of dollars each year with no solution from Tim Hortons head office yet the taxpayers in Canada are on the hook to cover the loses. We should be hiring nurses and doctors and not covering coffee losses to a publicly traded company….yet Tim Hortons continues to sell them to hospital locations with what promise? The taxpayers will cover the losses!!

Why do Tim Hortons executives say to stock experts that they can continue to grow revenues? As you can see they are tapped out in Canada and now have store owner competing against store owner? How can they compete against Starbucks and McDonald’s like Tim Hortons executives say but they can only expand in Canada, they’re entire marketing and selling is geared towards Canada. McDonald’s and Starbucks are both global players in the coffee game and Tim Hortons doesn’t stand a chance expanding outside of Canada. Tim Hortons have already closed stores in the USA.

Tim Hortons spends 4% of all gross sales on advertising but only cater to the Canadian market plus this 4% never gets returned to the shareholder even though the advertising presence in Canada is ridiculous. If you watch sports the Tim Hortons highlight of the night, every other commercial is a Tim Hortons one (and it’s the same one!), every radio add, newspaper, etc. Sometimes it’s funny to see the same commercial every break during a show. If you’re an investor how come these ACTUAL numbers are not being addressed? They grow revenue by simply building more stores which now have lower sales each year as they compete against other Tim Hortons in the same market, in some cases just across the street!! Does this sound like the “buy” stocks should really be a buy….more like watch out what happens as the truth is out there!! Tim Hortons cannot dispute the FACTS!!

Categories: Uncategorized
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