Copyright of Tim Hortons. All rights reserved.

Franchise Information Package

Copyright of Tim Hortons. All rights reserved.

Mission Statement

Our mission, in partnership with every Franchisee and TeamMember, is to be the industry leader through commitment toexcellence in people, product quality, value, cleanliness, Guestservice, and community leadership.

Copyright of Tim Hortons. All rights reserved.

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 communityleadership has allowed it to grow into the largest quick service Restaurant chain inCanada specializing in always fresh coffee, baked goods and home-style lunches.

The first Tim Hortons Restaurants offered only two products - coffee and donuts. Theselection of donuts was highlighted by two original Tim Hortons creations, the AppleFritter and the Dutchie. They became the most popular donut choices in the 60's, andremain two of the most popular today.

In addition to our regular stand-alone Restaurants, Tim Hortons locations can also befound in shopping malls, highway outlets, universities and hospitals, providingprominent visibility for the chain. Most standard Tim Hortons locations offer 24-hourdrive-thru service, catering to consumers on the go. Tim Hortons currentlyfranchises stand-alone Restaurants only.

As of June 30th, 2013, Tim Hortons had 4,304 system-wide Restaurants, including3,468 in Canada, 807 in the United States and 29 in the Gulf Cooperation Council.

Copyright of Tim Hortons. All rights reserved.

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) inaddition to the $50,000 working capital that must also be unencumbered. The remainingamount 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 andthe required furnishings and equipment to be installed. The cost of a Tim Hortons license mayexceed $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 upto a further period of 10 years.

*Subject to change without notice.

Copyright of Tim Hortons. All rights reserved.

Royalties

In addition to the initial investment, on-going payments (plus applicable taxes) arerequired 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 anextensive interview/approval process. For mutual success and satisfaction, we mustensure that each Franchisee possesses the necessary entrepreneurial drive,management skills, financial means and dedication that are required in today'scompetitive market.

In the Tim Hortons system, the selection of the best people followed by acomprehensive training program and ongoing operational and marketing support hasallowed the chain to continue its expansion and remain as Canada's leading coffee andbaked goods chain.

The acceptance of an application should not be construed as an approval or futureguarantee of becoming a Tim Hortons Franchisee.

Copyright of Tim Hortons. All rights reserved.

Training Program

New franchisees undergo an intensive seven week training program at the Tim HortonsUniversity, located next to the Oakville, Ontario, head office. The facility includesclassrooms and a fully operational Restaurant, providing trainees with intensive hands-on experience in the preparation of all Tim Hortons products. Strong emphasis is placedon food handling and hygiene procedures, Team Member relations, equipmentmaintenance and in-Restaurant security systems.

Support Team

With the head office inOakville, Ontario andregional offices in NovaScotia, Quebec, Alberta andBritish Columbia, franchiseesreceive corporate supportfrom coast-to-coast.

The Canadian team iscomprised of key functionsranging from operations,training, real estatedevelopment, construction,accounting, humanresources, information technology, franchising and marketing.

Our Managers of Business Development (MBD’s) are the direct link to our franchiseesthrough frequent on-site visits. In addition to their primary function of providingexperienced and knowledgeable feedback and guidance, they also ensure that ourstandards of product quality, value, and cleanliness and Guest service are consistentlymet in all locations within their district.

Have further questions? Please email franchise_requests@timhortons.com