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Financing and Accounting
Tim Hortons Paper
Type of Business
Start-up Schedule and Competition
Funds Use Statement
Franchisee Sales and Advertising.docx
1. Organizational Structure: The TDL Group Corp. is the licensing company for Tim Hortons franchises presently operating in Canada and the United States. The TDL Group Corp. employs over 1,400 people across seven regional offices. The franchised store locations retain a staff of over 83,000 people.
: The head office for the Tim Hortons chain is located in Oakville, Ontario, Canada. The head office building include: the national training center, Corporate Stores and the Innovation Center. Most Major departments are based out of the Oakville offices. In addition to the head office there are eight regional offices located across Canada and in the U.S., and five warehouse distribution centers.
: Regional offices typically have smaller teams handling many of the same departmental functions as those found in Oakville. Our regional offices are located in: Calgary AB, Langley BC, Debert NS, Kingston ON, Lachine PQ, Dublin OH, West Greenwich RI and Brighton MI.
: In 2006, the TDL Group Corp. relocated its Oakville Distribution Center to a new facility in Guelph, Ontario. With the Guelph facility included, there are five warehouse distribution centers: Langley, BC, Calgary, AB, Debert, NS, and Kingston, ON. Their primary mode of transportation is delivery by truck from these distribution centers directly to stores.
Key Personnel (Wage and Salary):
I. Don Schroeder- President and Chief Executive Officer; a member of the THI Board of Directors. Don Schroder’s salary in 2008 was $552,153.00.
II. Paul House - Executive Chairman; allowing him to focus on corporate strategy, franchisee relations and Board leadership. Mr. House also sits on the Board of Directors for the Tim Horton Children's Foundation. Paul House’s salary for 2008 was $604,799.00.
I. Necessary Staff
Storefront Employee- The first contact with the customers and has the responsibility to greet them accordingly and also tend to the cashier duties. The base pay is between $8 and $10 per hour.
Production Employee– Responsible for baking all the items sold at the store. The base pay is between $9 and $10 per hour.
Designated Trainer- Responsible for training and coaching new and existing employees to ensure that every employee has the skills and knowledge necessary to excel at their jobs.
Team Supervisor- Responsible for leading the fellow employees through your shift effectively. You must be able to spot opportunities to improve the business and effectively communicate with the management team. The base pay is between $10 and $12 per hour.
Assistant Manager- Responsible for some training of new employees as well as motivating current employees. You must support the Store Manager and Owner in the day-to-day operations.
Store Manager- Responsible for planning and executing methods of increasing sales and achieving target costs as well as direct communication with the Store Owner. Must be an expert at recruiting, training and coaching.
II. Support Team- Tim Hortons services their franchisees from our Dublin, Ohio office, where we maintain a team of skilled and dedicated professionals who provide operations, training, real estate development, construction, accounting, human resources, information technology, franchising and marketing support.
The District Managers are the direct link to the franchisees through their frequent on-site visits. Their primary function is to provide experience, knowledgeable feedback and guidance. They also ensure that the standards of product quality, value, cleanliness and customer service are consistently met in all locations within their district.
III. Franchise Advisory Board
a franchise advisory board made up of 16 store owners from across the chain and management meets on a quarterly basis to provide input on the main issues facing the industry and chain. Company policy, major marketing programs and expenditures are the main focus of the Board. Franchisees present reports from their regions on any issues of interest or concern to their business.
IV. Franchise Incentive Program - The program allows short term financing on the cost of the equipment, trade fixtures, furniture and interior signs for a 24 month period from the takeover/opening date. An initial payment towards the equipment package (i.e. equipment, furniture, trade fixtures and sign) of $20,000 would be payable when the franchisee signs the Franchise Agreement.
I. There must be two owner operators who:
Both have equity in the business and will commit their full and entire efforts to the business
Both have no other business venture
Both are ready to sever relationships with their current employer prior to beginning our 6-8 week training session
Both live in the U.S. within 30 miles of their Tim Hortons Shop.
If one or both are not a citizen of the United States of America, that individual must be willing to sell their home, move their family and live in the U.S. within 30 miles of their Tim Hortons Shop.
If one or both are not a citizen of the United States of America, that individual must be
to live, work and own a business in the U.S.
II. Training and Assistance: New franchisees undergo an intensive eight week training program at the Tim Hortons Training Centre, located next to the Oakville, ON, head office. The facility includes classrooms and a fully operational store, providing trainees with intensive hands-on experience in the preparation of all Tim Hortons products. Strong emphasis is placed on food handling and hygiene procedures, employee relations, equipment maintenance and in-store security systems. In addition, there will be a store opening crew to assist in the opening of a Tim Hortons restaurant (for a maximum period of two weeks)
III. Terms of Agreement and Renewal: The term of the License Agreement is usually 10 years and typically comes with options to renew for up to a further period of another 10 years.
Tim Hortons Training Guidelines
Training of Franchisee
Before a franchisee is to open a Tim Hortons, they must complete rigorous training in order to be knowledgeable about food handling, hygiene procedures, financial controls, employee relations, equipment maintenance and security, along with other duties involved with operating the franchise.
New store owners must attend the Tim Hortons Training Centre where they will undergo seven weeks of intense training in a classroom setting, as well as in a fully operational training Tim Hortons store, where they will gain understanding of the elements involved in operating the franchise in the areas specified above. The franchisee may receive training and support by a toll-free phone line and occasional meetings with other owners. Additionally, once the store has been opened by the franchisee, they will also receive a maximum of two weeks assistance by an Opening Store Crew.
If a franchisee fails to comply with the rules and regulations set forth by Tim Horton’s, they may be required to undergo additional training assistance until they satisfactorily complete the program.
Training of store employees
The Tim Hortons franchisee shall hire their employees and be responsible for the terms of employment and compensation and also implementing the employee training program. Employees will be instructed by the use of CD-ROM’s and videos that have a strong emphasis on:
The history of Tim Hortons
Coffee history and background information (roasting beans, quality assurance, brewing/machinery, aromas/flavors)
Food handling and hygiene procedures (including the handling of chemicals, equipment)
Ethics, sensitivity, and violence in the workplace
The employees will have to take examinations and understand all the information before they are allowed to participate on the actual store floor. They then will have two days of applying their new knowledge in the store with a trainer who will oversee and supervise their actions. If satisfactory, they will then be on their own for the duration of employment. All employees must agree to operate Tim Hortons in compliance with the franchisee and franchisor’s standards.
If Tim Hortons feels the need to offer additional operating assistance they may do so in order to benefit the well being of the franchise, employees, and customers. This advice and guidance may consist of:
Methods and operating procedures
Implementing new/additional products and/or services
Purchasing/supplying of these new products and/or services
Formulating and applying new advertising and promotional programs
Assistance with administrative functions such as: bookkeeping, accounting, inventory control
Financing and Accounting
IV. Financing and Accounting.docx
Tim Hortons legal draft .docx
(put your appendix files at the end of your designated parts)
Marketing Paper-Tim Hortons Ciszek.doc
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