Tim Hortons Main Business Activity

The main business activity of Tim Hortons is to sell as much of their product as possible, and continuously innovate new products in order to sustain organic growth in the company as well as attract and retain customers. THI has two main operating strategies from which they generate revenues; company owned restaurants and franchising restaurants. The majority of the revenue generated comes from franchising however; in 2012 99.5% of restaurants were franchised while only 22 locations were company operated. There are two ways that THI franchises the restaurants, VIE (Variable Interest Entity) and FIP (Franchise Incentive Program). Under the VIE agreement, THI owns the assets and the appointed manager operates the restaurant. Under the FIP arrangement,