Dunkin’ is preparing a return to Canada after signing a master franchising agreement with Montreal‑based restaurant operator Foodtastic to open hundreds of locations nationwide.

Foodtastic has secured exclusive rights to the Dunkin’ brand across Canada and plans to open a mix of corporate‑owned and franchised restaurants, according to a joint announcement with Inspire Brands, the U.S.-based parent of Dunkin’. The first locations are expected to open in late 2026 or early 2027.

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

Foodtastic said it will oversee market development, franchisee recruitment and operations. The Dunkin’ stores are expected to sell hot and iced coffee, espresso drinks, doughnuts, sandwiches and snacks.

Then known as Dunkin’ Donuts, the chain exited Canada in 2018, when its last remaining locations in Quebec closed after years of steady franchise attrition and heated competition from Tim Hortons. The chain’s retreat followed a prolonged decline that left only a handful of stores operating long after most of its Canadian network had disappeared.

Michael Haley, president of international at Inspire Brands, said the company, based near Atlanta, is confident in Foodtastic’s ability to expand American restaurant brands in Canada.

“Dunkin’s international footprint continues to thrive,” Haley said in a statement.

Dunkin’ is one of the world’s largest coffee‑and‑doughnut chains, operating more than 14,000 restaurants globally across roughly 39 markets, according to company disclosures. The vast majority of stores are located in the United States, where it has about 10,000 locations and is especially concentrated along the East Coast, led by New York, Massachusetts and Florida.

Dunkin’, founded in 1950, has its headquarters in Canton, Massachusetts, outside Boston. The chain is owned by Inspire Brands, a restaurant group that also controls Arby’s, Baskin‑Robbins, Buffalo Wild Wings, Jimmy John’s and Sonic Drive‑In.

Inspire Brands this week filed for an initial public offering of its stock in the U.S.

Dunkin’ would be re‑entering a market dominated by Tim Hortons, which remains Canada’s largest restaurant chain by a wide margin. Tim Hortons operates about 3,570 locations nationwide, spanning all 13 provinces and territories, according to a March 2026 location audit by ScrapeHero, a company that tracks active branded outlets by address. Ontario accounts for more than half of the system, while Quebec has roughly 550 locations.

Tim Hortons is owned by Restaurant Brands International, the Toronto‑based publicly traded company that also controls Burger King, Popeyes and Firehouse Subs. After decades of rapid expansion, Tim Hortons’ size in Canada has largely stabilized, with recent growth focused on renovations, added drive‑thru capacity and incremental infill rather than aggressively pursuing new store openings.

The Dunkin’ chain entered Canada in the early 1960s and expanded steadily for decades, opening locations across Ontario, Atlantic Canada and parts of Western Canada while becoming deeply entrenched in Quebec. By the mid‑1990s, Dunkin’ operated several hundred locations nationally, competing directly with Tim Hortons in urban and suburban markets.

Dunkin’s national presence began eroding in the late 1990s and early 2000s as Tim Hortons ramped up expansion while Dunkin’ struggled to remain competitive outside Quebec. Locations in Ontario and Western Canada were among the first to shut down, with entire regions exiting the system by the mid‑2000s.

By that point, Quebec had become Dunkin’s last meaningful stronghold in Canada, even as store counts there also declined. Quebec franchisees increasingly complained that decisions made by the company’s U.S. head office did not reflect Canadian consumer preferences. Restaurant owners said menu standardization, advertising missteps and limited promotional spending left them exposed as Tim Hortons tightened its grip on the breakfast and coffee market nationwide.

Those tensions culminated in a 2003 lawsuit filed by Quebec franchisees who alleged the company failed to adequately support the brand during a critical period of rising competition. The plaintiffs argued Dunkin’ had restricted local menu customization and neglected marketing commitments while the chain’s market share collapsed.

While the case moved slowly through the courts, Dunkin’s remaining Canadian locations continued to dwindle. By the mid‑2010s, only a handful of stores remained, concentrated in and around Montreal.

More than a decade after the lawsuit was filed, Quebec courts ultimately ruled in favour of the franchisees, awarding damages that eventually totaled about $17 million, or about 12.5 million U.S. dollars. But the judges recalculated the original award downwards to $10.9 million.

Dunkin’ said at the time it would seek to overturn the decision. The final Canadian Dunkin’ locations closed in 2018, ending the brand’s six‑decade run in the country.

Foodtastic did not disclose where the first new Dunkin’ restaurants will open or how quickly the company expects to build out the network. Further details on site selection and rollout timing will be announced as development progresses, the companies said.

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