Parent company Tim Hortons Inc. has announced it has filed documents that would shift its corporate ownership back north of the border. Its current Canadian headquarters is in Oakville, Ontario.
The company says the move will save on taxes and make international expansion easier.
Tim Hortons, founded in the mid-'60s by Cochrane, Ontario-born hockey legend Tim Horton, became part of Wendy's in 1995, forging a partnership led by Wendy's founder Dave Thomas that saw the restaurants sit side-by-side at many locations.
In 2006, the company was spun off into its own American entity, though its corporate headquarters remained in Oakville, and most of its stores are in Canada.
Since then, the chain has struggled to boost sales in the United States despite thriving in Canada.
The migration back to Canada will allow Tim Hortons to reap benefits of the lower federal tax structure that was announced last year by Finance Minister Jim Flaherty, the company explained.
A Tim Hortons franchise requires a total investment of $46,000 to nearly $500,000. The initial franchise fee on a 10-year agreement is $35,000, and there is a royalty fee of 2.5 per cent to 4.5 per cent, plus an advertising fee of 4 per cent.
From the Western Investor, August 2009
