Home > Uncategorized > Tim Hortons Franchise Facts

Tim Hortons Franchise Facts

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!!

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Categories: Uncategorized
  1. March 21, 2013 at 2:57 am

    Unfortunately this seems to be the way ALL (or almost all) franchisors treat their franchisees. Not saying Timmys should be excused for their behavior, just saying.

    After reading this book, I learned how abusive they are & how the government protects them & allows them to get away with their abusive tactics.

    The book also showcased which company ends up in court the most often.

    http://www.my-book-reviews.com/books-i-highly-recommend/business/review-of-the-book-fast-food-nation/

    If anyone ever needs a contract reviewed, I can get someone to do it for you for a very reasonable price.

    According to the book, a high percentage of franchisees NEVER have a contract reviewed prior to signing it.

    Franchisors prey upon the uneducated & immigrants who either don’t understand English well, or don’t know any better.

    As an entrepreneur, I’ve never thought of owning a franchise as being an entrepreneur. You are better off starting your own business from scratch & being responsible ONLY to yourself.

    Michelle

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