Franchise Information Package

Transcription

1 Franchise Information Package

2 Mission Statement Our mission, in partnership with every Franchisee and Team Member, is to be the industry leader through commitment to excellence in people, product quality, value, cleanliness, Guest service, and community leadership.

3 Our History The Tim Hortons chain was founded in 1964 in Hamilton, Ontario, Canada. The chain's focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service Restaurant chain in Canada specializing in always fresh coffee, baked goods and home-style lunches. The first Tim Hortons Restaurants offered only two products - coffee and donuts. The selection of donuts was highlighted by two original Tim Hortons creations, the Apple Fritter and the Dutchie. They became the most popular donut choices in the 60's, and remain two of the most popular today. In addition to our regular stand-alone Restaurants, Tim Hortons locations can also be found in shopping malls, highway outlets, universities and hospitals, providing prominent visibility for the chain. Most standard Tim Hortons locations offer 24-hour drive-thru service, catering to consumers on the go. Tim Hortons currently franchises stand-alone Restaurants only. As of June 30th, 2013, Tim Hortons had 4,304 system-wide Restaurants, including 3,468 in Canada, 807 in the United States and 29 in the Gulf Cooperation Council.

4 Franchising Program Franchise Cost: $480,000 to $510,000* plus all applicable taxes (this includes a drive-thru) Additional Working Capital: (start-up costs) $50,000 (unencumbered) At least $153,000 of the franchise cost must be unencumbered (cash or liquid assets) in addition to the $50,000 working capital that must also be unencumbered. The remaining amount may be financed through various lending programs offered by the chartered banks, providing, of course, the candidate meets the normal borrowing requirements. The specific cost of a Tim Hortons license will depend upon the Tim Hortons building size and the required furnishings and equipment to be installed. The cost of a Tim Hortons license may exceed $510,000 in certain locations due to higher development costs. Included in the cost of a franchise is the following: All equipment, furniture, display equipment and signage 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) The use of all Tim Hortons Manuals Right to use trademarks and trade names Support from head office personnel who have vast knowledge in the food service business Not included in the cost of the franchise: The building (responsibility of the TDL Group) The property that the Restaurant is built (responsibility of the TDL Group) The term of the License agreement is usually 10 years and usually with options to renew for up to a further period of 10 years. *Subject to change without notice.

5 Royalties In addition to the initial investment, on-going payments (plus applicable taxes) are required as follows:* A weekly royalty fee of 4.5% of gross sales for the term of the license A monthly rental that is the greater of a fixed minimum rent or 8.5% of monthly gross sales A monthly advertising levy of 4% of gross sales for the term of the license *Royalties are subject to change Selection Process The selection of new Tim Hortons Franchisees is an important decision involving an extensive interview/approval process. For mutual success and satisfaction, we must ensure that each Franchisee possesses the necessary entrepreneurial drive, management skills, financial means and dedication that are required in today's competitive market. In the Tim Hortons system, the selection of the best people followed by a comprehensive training program and ongoing operational and marketing support has allowed the chain to continue its expansion and remain as Canada's leading coffee and baked goods chain. The acceptance of an application should not be construed as an approval or future guarantee of becoming a Tim Hortons Franchisee.

6 Training Program 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 handson 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. Support Team With the head office in Oakville, Ontario and regional offices in Nova Scotia, Quebec, Alberta and British Columbia, franchisees receive corporate support from coast-to-coast. The Canadian team is comprised of key functions ranging from operations, training, real estate development, construction, accounting, human resources, information technology, franchising and marketing. Our Managers of Business Development (MBD s) are the direct link to our franchisees through frequent on-site visits. In addition to their primary function of providing experienced and knowledgeable feedback and guidance, they also ensure that our standards of product quality, value, and cleanliness and Guest service are consistently met in all locations within their district. Have further questions? Please [email protected]