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In addition to the initial investment required to open a Tim Hortons Restaurant in the US, what ongoing payments am I required to make during the term of the Franchise Agreement?

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In addition to the initial investment required to open a Tim Hortons Restaurant in the US, what ongoing payments am I required to make during the term of the Franchise Agreement?

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In addition to other expenditures, you are required to make the following payments on an ongoing basis during the term of the franchise agreement: • a weekly royalty of 4 1/2% of your restaurant’s gross sales; • typically the rent during the initial term (usually 10 years) is 8 1/2% of monthly gross sales. Rent for the renewal term(s) will typically be computed on a percentage rent basis, subject to a minimum base rent; • a monthly advertising fee of 4% of gross sales from your restaurant. * Please read more about our Franchise Incentive Program under “Franchising Program” (especially relating to a lower unencumbered capital requirement of $55,000 to $82,900), available in select markets.

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