Franchising Since: 1955
Headquarters: Atlanta, Georgia
Estimated Number of Units: 13,375
Franchise Description: The franchisor is Dunkin’ Donuts Franchising LLC. Inspire Brands is the ultimate parent company. The franchisor develops, operates and franchises retail restaurants utilizing the Dunkin’ system. Franchised restaurants sell doughnuts, coffee, espresso, bagels, muffins, croissants, breakfast sandwiches, and related bakery items, as well as other food and beverage products. The restaurant types offered are as follows:
- Freestanding: A restaurant, either newly constructed or an existing structure (to be retrofit), that does not share any common walls with any third party.
- Shopping Center/Storefront: A restaurant that shares a common wall (or walls) with third parties. The restaurant could be an anchor (endcap) or inline tenant space in a strip center, or it could be a location in a high density, multiple level construction (typically urban/downtown office building setting), sharing common wall and ceiling/floor construction with any third party.
- Gas/Convenience Restaurants: A restaurant that is a sub-or shared tenancy within a gas/convenience host environment.
- Special Distribution Opportunity (SDO): These restaurants and any cart or kiosk locations are sometimes referred to as special distribution opportunities or non-traditional outlets, and may be located within another host establishment, such as a stadium or another retail facility.
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Territory Granted: Franchisees will operate the restaurant at a specific location that the franchisor first must accept. Franchisees will not receive an exclusive territory. Franchisees also do not have any type of nonexclusive territory. Franchisees may not distribute products other than menu items at and through their restaurant, including alternative channels of distribution.
Obligations and Restrictions: Franchisees must devote continuous best efforts to the development, management and operation of their business, which includes the devotion of sufficient time and resources to ensure full and complete compliance with their obligations to the franchisor under the Franchise Agreement. Franchisees must develop and operate the restaurant in compliance with the franchisor’s standards. Franchisees may not conduct any other business or activity at the restaurant without the franchisor’s prior written approval. Franchisees may only offer or sell products approved by the franchisor and they must offer for sale the full menu required by the franchisor.
Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Renewal is for an additional term of 20 years if renewal conditions are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $10,000 | $90,000 |
Building Costs | $51,000 | $600,000 |
Site Development Costs | $0 | $350,000 |
Additional Development Costs | $5,000 | $90,000 |
Equipment, Fixtures and Signs | $112,000 | $300,000 |
Restaurant Technology System | $12,000 | $118,000 |
Licenses, Permits, Fees and Deposits | $500 | $7,500 |
Real Estate Costs | Varies | |
Opening Inventory | $4,000 | $20,000 |
Miscellaneous Opening Costs | $9,500 | $70,000 |
Uniforms | $400 | $3,000 |
Insurance | $4,500 | $16,000 |
Travel and Living Expenses While Training | $2,000 | $50,000 |
Marketing Start-Up Fee | $0 | $10,000 |
Additional Funds for First 3 Months of Operation | $0 | $108,000 |
ESTIMATED TOTAL* (doesn’t include real estate costs) | $210,900 | $1,832,500 |
Other Fees
Type of Fee | Amount |
Continuing Franchise Fee | 5.9% of gross sales. |
Continuing Advertising Fee | 5% of total gross sales |
The Center Annual Subscription Fee | Currently, $340. |
Additional Training Fee | Currently, $4,000 per person. |
Training Cancellation Fee | $1,000 per person if cancellation occurs 6-10 days before training. $2,000 per person if cancellation occurs 5 days or less days before training. |
Loyalty Program Contribution Payment | Currently, 1.6% of loyalty program sales. |
Taxes | Varies. |
Late Fee and Interest | Currently, 1.5% per month or highest rate permitted by law, whichever is less. |
Collection Costs | Varies. |
Relocation Fee | Varies. |
Insurance | If franchisees fail to obtain insurance, the franchisor may obtain coverage at their expense. |
Indemnification | Varies. |
Transfer Fee (Within First 3 Years of Operation) | An amount based upon the gross sales of the restaurant for the 12 months preceding the date of the contract of sale, plus $12,500 for a Dunkin’ restaurant or $20,000 for a combo restaurant. |
Transfer Fee (After First 3 Years of Operation) | An amount based upon the gross sales of the restaurant for the 12 months preceding the date of the contract of sale. |
Fixed Documentation Fee | Currently, $2,000 per transferee. |
SDA Transfer Fee (majority interest) | $10,000 |
Enforcement Expenses | Varies. |
Immigration Status Review Costs | The franchisor’s out-of-pocket costs to hire attorneys or others. |
Reimbursement of Costs Incurred to Test Samples from Additional Supplier(s) | Varies, typically between $1,000 to $10,000. |
Lease Costs | Varies. |
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