Dunkin' vs Tim Hortons
Franchise Comparison (2026)
2026 FDD Data
Dunkin' is ranked #1 on the Franchise 500 with 12,000+ locations globally and a much lower minimum investment ($121K vs $971K). Tim Hortons has lower franchise fee ($50K vs $65K) and royalty rate (4.5-6% vs 5.9%) but struggles in the U.S. market with only 642 locations versus 8,000+ for Dunkin'.
Dunkin' and Tim Hortons are the top two coffee and donut franchises in North America, with Dunkin' dominating the U.S. market and Tim Hortons leading in Canada. This FDD comparison examines their franchise fees, investment requirements, and market positioning. Understanding these differences is crucial for coffee franchise investors.
Quick Comparison
Dunkin'
$65,000
Tim Hortons
$50,000
Dunkin'
$121,000 - $1,810,000
Tim Hortons
$971,000 - $1,717,500
Dunkin'
5.9%
Tim Hortons
4.5-6% of gross sales
Dunkin'
12,000
Tim Hortons
5,352
Detailed Comparison
| Metric | Dunkin' | Tim Hortons |
|---|---|---|
| Initial Investment | ||
| Franchise Fee | $65,000 | $50,000 |
| Total Investment (Low) | $121,000 | $971,000 |
| Total Investment (High) | $1,810,000 | $1,717,500 |
| Net Worth Required | $500,000 | $500,000 |
| Liquid Capital Required | $250,000 | $300,000 |
| Ongoing Fees | ||
| Royalty Rate | 5.9% | 5.25% |
| Advertising Fund | 5% | 4% |
| Technology Fee | Not Disclosed | Not Disclosed |
| System Size & Growth | ||
| Total Units | 12,000 | 5,352 |
| Franchised Units | 8,087 | 642 |
| Company-Owned Units | 0 | 0 |
| 3-Year Net Growth | Not Disclosed | Not Disclosed |
| Financial Performance (Item 19) | ||
| Item 19 Disclosed | No | No |
| Average Revenue | N/A | N/A |
| Median Revenue | N/A | N/A |
| Franchise Terms | ||
| Initial Term | Not Disclosed | Not Disclosed |
| Renewal Term | Not Disclosed | Not Disclosed |
| Territory Protection | Not Disclosed | Not Disclosed |
| Requirements | ||
| Owner-Operator Required | Not Disclosed | Not Disclosed |
| Training Hours | Not Disclosed | Not Disclosed |
| Years Franchising | 76 years | 62 years |
| Risk Indicators | ||
| Litigation Matters | Not Disclosed | Not Disclosed |
| Termination Rate | Not Disclosed | Not Disclosed |
Key Differences
Franchise 500: Dunkin' ranked #1; Tim Hortons not ranked
U.S. Presence: Dunkin' has 8,000+ U.S. locations vs Tim Hortons at 642
Minimum Investment: Dunkin' starts at $121K vs Tim Hortons at $971K
Franchise Fee: Dunkin' at $65K vs Tim Hortons at $50K
Royalty Rate: Dunkin' at 5.9% vs Tim Hortons at 4.5-6%
Payback Period: Tim Hortons discloses 9.5-11.5 years
Parent Company: Tim Hortons owned by RBI (with Burger King, Popeyes)
Investment Fit Analysis
Who Should Consider Dunkin'
Dunkin' suits investors seeking the #1 ranked franchise with dominant U.S. market presence and lower minimum investment.
#1 on Franchise 500
12,000+ locations in 42+ countries
Lower minimum investment ($121K)
Dominant U.S. coffee market position
Inspire Brands backing
8,000+ franchised U.S. locations
Who Should Consider Tim Hortons
Tim Hortons suits investors seeking lower royalty rates and RBI backing with potential in underserved U.S. markets.
Lower franchise fee ($50K)
Lower royalty rate (4.5-6%)
RBI corporate backing (Burger King, Popeyes)
Strong Canadian brand recognition
9.5-11.5 year disclosed payback
Whitespace opportunity in U.S. market
Frequently Asked Questions
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Disclaimer
This comparison is provided for informational purposes only. Data has been aggregated from publicly available sources including Franchise Disclosure Documents, industry publications, and franchise analysis websites.
Prospective franchisees should review the complete FDD for each franchise, conduct their own due diligence, and consult with qualified legal and financial advisors before making any investment decisions.