In May, Dunkin’ revealed it would return to a major market nearly a decade after its departure. The news comes at a pivotal moment for the coffee chain, as its presence in locations outside of the U.S. faces uncertainty. 

Earlier this year, India-based food service company Jubilant FoodWorks, which operates Dunkin’s locations in the country, revealed it will not renew its Dunkin’ franchise agreement when it expires at the end of 2026.

Both parties are evaluating next steps for existing stores, and final decisions have not been made regarding those locations. But the deal’s breakdown could represent a major blow to Dunkin’s presence in the area.

The dissolution of that partnership makes the chain’s return to another major market that much sweeter. 

Dunkin’ signs deal to return to Canada

Last week, Inspire Brands, Dunkin’s parent company, revealed in a press release that it signed a master franchising agreement with Canadian restaurant operating company Foodtastic to open hundreds of Dunkin’ locations across the country.

The first Canadian Dunkin’ location is expected to open in late 2026.

“Dunkin’s international footprint continues to thrive, so we are excited to bring this iconic brand to Canada through a strong, like-minded partner,” Inspire Brands President of International Michael Haley said in a statement. 

The Dunkin’ deal isn’t Inspire Brands and Foodtastic’s first partnership. In 2024, the companies teamed up to bring Jimmy John’s north of the border. At the close of 2025, there were seven Jimmy John’s locations in Canada, with several more planned for this year.

For Foodtastic, then, the Dunkin’ deal serves to further its foothold as one of the leading fast food franchisors in the country.

“Bringing Dunkin’ back to Canada is a significant growth opportunity for Foodtastic and our franchise partners across the country,” Foodtastic CEO Peter Mammas said in the press release.

“This agreement demonstrates the strength of our relationship with Inspire and the confidence we have built together through our work with Jimmy John’s in Canada. We are committed to growing the Dunkin’ brand thoughtfully to meet the needs of Canadian guests and communities.”

In May, Inspire Brands revealed that it had signed a deal with Foodtastic, returning Dunkin’ locations to Canada for the first time since 2017.

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Dunkin’ will face off with Tim Hortons

Dunkin’ will face some stiff competition in Canada.

Tim Hortons, another quick-service coffee and breakfast chain, has almost 3,600 locations in the country, according to ScrapeHero, and L’Express Franchise cites it as one of its most lucrative and popular franchises. 

Founded in 1964 by former professional hockey player Tim Horton, the eatery is renowned for its coffee selection and bite-sized Timbits. Owned by Restaurant Brands International, the chain also has some serious corporate heft and money behind it.

At the close of Q1 FY2026, Tim Hortons supplied 41% of Restaurant Brands International’s total revenues. 

“We remain focused on defending and extending our leadership in coffee, breakfast, and baked goods,” RBI’s CEO Josh Kobza told investors during a recent earnings call. 

The struggle of taking a national brand global

In what may prove to be a cautionary tale for Dunkin’, Tim Hortons has been working on U.S. expansion for several years with little success. 

The chain closed 2025 with more than 700 franchised locations and nearly two-dozen company-owned stores. Despite its expansion efforts, the chain hasn’t been able to establish itself as a premier coffee destination the way Starbucks and Dutch Bros have.

Why? Brand recognition, market saturation, and consumer habit — all issues that Dunkin’ will likely face as it rolls out across Canada. 

In order to succeed up north, Dunkin’ will need to differentiate itself, either by strengthening its value proposition and offering consumers something they can’t get at Starbucks or Tim Hortons, or by undercutting those competitors on price. 

So far, Inspire Brands has released no concrete details about what its Canadian locations will offer or how those offerings will be priced. Details on these topics will come closer to opening, the announcement says.

Inspire Brands is going public

The Canada deal may also support Inspire Brands’ broader financial ambitions.

The Canadian expansion announcement came just days after the company said it filed initial paperwork with the Securities and Exchange Commission for an IPO.

“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the announcement read. “The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.”

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It’s likely that this push for international expansion happened with that IPO in mind. An international presence has been demonstrated to make an IPO more successful by increasing valuation, enhancing credibility, and diversifying the investor base.

One study published in the Journal of Banking and Finance found that companies with an international presence “significantly outperform” purely domestic IPO companies over three- and five-year periods. These companies also tend to have a higher overall survival rate.

While Dunkin’ already has a presence in some 40 countries, Canada represents one of its most difficult expansion challenges. It’s already tried — and failed — to find its place in the region. 

Making a second attempt now, with so much on the line in terms of setbacks in other markets and looming IPOs, could either be an excellent growth opportunity or a costly misstep. It all depends on how well the coffee chain can differentiate itself from entrenched competitors like Tim Hortons. 

Related: Dutch Bros is quietly becoming an energy drink giant