1. Multi-layered business model

The Tim Hortons business model includes significant levels of real estate control and vertical integration, supporting our highly franchised business. Each aspect of our model contributes to our success and creates system advantages, while also generating system benefits and value for our Restaurant Owners.

The Tim Hortons business model is time-tested and different than most quick service restaurant companies. This model has created a 47-year history of growth and performance. Real Estate Primary formula is rent based on % of sales • 8.5% of sales(1) Franchising Primary formula is royalty based on % of sales • 4.5% of sales Vertical Integration • 5 distribution centres • 2 coffee roasting facilities • Fondant and fills manufacturing facility (1) Rent owed to Tim Hortons when a Restaurant Owner leases from the Company.