Dunkin Donuts Franchise Costs

Dunkin Donuts Franchise Costs

Donuts are an all-time favorite food for many Americans. While some people eat them for breakfast, others see them as more of a snack food. 

But, one thing that’s for certain is that we just can’t get enough of the sugary balls of dough. Donuts were first introduced in America by the Dutch settlers and since then have undergone many transformations to make them into the fine artistic indulgences we’ve come to know and love today. And one of the companies that helped make that happen is Dunkin Donuts.

dunkin donuts franchise cost

A brief history of Dunkin Donuts

Dunkin Donuts was originally founded in Quincy, Massachusetts in 1950 by William Rosenberg. The idea arose after Rosenberg’s experience of selling food on construction sites and in factories. He noticed that the majority of goods being sold were coffee and doughnuts. From that, he decided to open up his own restaurant called Dunkin Donuts.

Because his first restaurant was such a roaring success, in 1955 Rosenberg decided to sell franchises of Dunkin Donuts to allow his brand to develop even further.

By 1963, there were 100 Dunkin Donuts locations in operation, although not all of them sold the same items. While some offered full breakfasts, others were simply serving donuts and coffee. By 1998, annual sales exceeded $2 billion and the number of Dunkin Donuts locations had grown to a staggering 2,500. As franchises continued to be sold and the brand continued to grow, annual sales rose to around $6 billion by 2010.

There are now more than 11,000 Dunkin Donut locations spread across the world. While a large majority of these are located in the United States, other popular locations for the donut chain include South Korea, China, Brazil, and the U.K.

Why do people franchise?

As you can see, there are a lot of Dunkin Donut outlets, many of which were opened with the help of a franchise. So, what is it that makes franchising so enticing?

  • You’ll be selling a product or service that already has a proven track record.
  • No experience is needed. Most training is usually included as part of the franchise package.
  • You’ll get exclusive selling rights in your particular area, so no other franchise of the same company can set up shop next door.
  • Banks are often more willing to part with their cash if you’re going to buy a franchise, provided it’s one with a good reputation.
  • Advertising and promotion costs are taken care of by the franchisor.
  • You’ll get full support from the franchisor as you continue to grow the business.

The Dunkin Donuts Franchise

For all you donut lovers out there, what better way is there to make money than from a Dunkin Donuts Franchise? Because they’ve been offering franchises out for quite a few years now, there’s a very well established process to go through if you are interested in becoming a part of the Dunkin Donut family. Before you sign any franchise agreement, however, there are many things that you have to do. The first thing you’ll need to do is fill out an application and submit it online. Once the franchise team at Dunkin Donuts has reviewed the application, someone will get in touch.

The next steps then involve you reviewing all the legal franchising documents and information to ensure you know exactly what you’re getting into. Once you’re completely happy with it all and have passed all the necessary citizen and financial checks, it’s time to create the business plan. This will include choosing the location and meeting with the Franchise Manager. 

Final background checks and a financial review based on the devised business plan are then carried out. Provided everything comes back as it should, the franchise is approved and training begins. Any financing required would be done at this stage also. A site would then be secured, staff would be trained, and finally, your very own franchised Dunkin Donuts would open its doors.

What costs are involved in setting up a Dunkin Donuts Franchise?

The total cost of securing your own Dunkin Donuts franchise will vary depending on a number of factors. As a bare minimum requirement, applicants must have at least $125,000 in liquid cash and a net worth of at least $250,000. However, there are various other costs to take into consideration too.

The initial franchise fee itself is payable upfront and can vary anywhere between $40,000–$90,000 depending on a number of factors including the size and location of the store and the franchisee’s experience. There is also the cost of the real estate to consider. If buying the property, this can often be the most expensive part. Other startup costs include money for supplies, equipment, any business licenses required, and working capital. You will, of course, have ongoing royalty fees to pay also which currently stands at around 6%.

Still not convinced?

If you’re still unsure as to whether the Dunkin Donuts Franchise is for you, here are a couple more sweeteners:

  • You get more than 250 hours of combined classroom/on-the-job training to help you make your franchise a success.
  • You get continued sales and marketing support.
  • If you’re a veteran you get the added benefit of 20% the franchise fee for up to 5 chains.

Over the past 68 years, the brand has worked hard to become one of the most popular donut companies, not just in the United States, but in the whole world. So, really they’ve done most of the legwork for you. Running a franchise is hard work, but it can also be very rewarding, particularly if you’re running a donut shop. Yum, Yum! Current plans in the pipeline for Dunkin Donuts include expanding the number of stores in the United States to 15,000 by 2020. Will you be one of the next wave of entrepreneurs to take on the likes of the Dunkin Donut Franchise?