Tim Hortons, a popular Canadian express coffee and doughnut chain, has announced that they will be co-branding with another popular chain, Cold Stone Creamery, an American ice cream parlor chain.
The deal includes a total of 100 new stores, at CA$121,690 (US$100,000) each.  Each company will have 50 stores that they will build as, or convert into, dual-operation franchises.  Each of the 50 stores will offer menus from each company and be located in 7 states, mostly in the Northeastern U.S.. 
Executives at Tim Hortons believe that mixing the two together is perfect because Tim Hortons makes most of their profit in the morning, while the Creameries are more popular in the evening. The idea proved successful when tested for three months in Rhode Island, in two different stores.
"We're very excited about the complementary daypart piece. It's something unique in what we see from a co-branding perspective," said Tim Hortons chief of operations, David Clanachan. Construction has already started and stores are expected to open in May.
Tim Hortons was founded by Canadian ice hockey player Tim Horton. The first store opened in Hamilton, Ontario in 1964. In July of 2007, there were over 2,700 locations in Canada and 500 in the U.S.. Cold Stone Creamery was founded in 1988 in Scottsdale, Arizona. There are over 1,400 operation, in locations such as Japan, South Korea and the U.S..

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'Tim Hortons' coffee shops to go 'Cold Stone'