10 Best Donut Franchises 2024

Since Americans consume over 10 billion donuts each year, any entrepreneur looking to open a franchise might benefit greatly from this industry. So, for this reason, we have compiled a list of these 10 best donut franchises that you can possibly invest in 2024.

And since the donut industry is expected to grow at a CAGR of 7.00% by 2030, now might be a great time to enter this profitable industry and rake in profits.

So make sure to read this guide till the end.

10 Best Donut Franchises

10 Best Donut Franchises

1. Dunkin’

Dunkin' donuts franchise
Founded1950
Franchising Since1950
Estimated Outlets12,900+
Initial Investment$526,900 – $1,809,500
Franchise Fees$40,000 – $90,000
Liquidity$250,000
Royalty Fees5.9%

Dunkin’ is one the best and most popular donuts and coffee franchises to invest in. The company has been in the industry for over 70 years and has a proven business model.

You can apply for a single-unit or multi-unit Dunkin’ franchise and choose from a variety of different franchise models.

However, the cost of investment for this franchise is a bit high. And to be eligible for a Dunkin’ franchise, you need to have a minimum net worth of $500,000 and liquid cash of $250,000.

Apart from this, Dunkin’ offers a reduction in franchise fees and veteran’s discounts to candidates who are eligible for the same.


2. Shipley Do-Nuts Franchise

Shipley Do-Nuts Franchise
Founded1936
Franchising Since1987
Estimated Outlets340+
Initial Investment$655,000 – $1,339,500
Franchise Fees$40,000
Liquidity$50,000 – $150,000
Royalty Fees1%

Shipley Donuts is a popular QSR and donut franchise that is known for serving 60 varieties of donuts, pastries, and kolaches.

As per the company’s website, the top 25% of franchise owners made an AUV of $1.44 Million, which is the kind of earning expectation you can have from this franchise.

The best part about this franchise is the low royalty fee of 1% and other discounts that the franchisor offers to eligible candidates.

The franchisor is looking for franchise candidates who have experience and success investing in the Quick Service Restaurant.


3. Duck Donuts

Duck Donuts
Founded2007
Franchising Since2013
Estimated Outlets100+
Initial Investment$424,285 – $608,835
Franchise Fees$30,000 – $40,000
Liquidity$200,000
Royalty Fees5%

Founded in 2007 in the Outer Banks, North Carolina, Duck Donuts has expanded to become one of the best international donut franchises.

The brand is expanding through North America currently and is offering single and multi-unit opportunities for passionate entrepreneurs.

As per the company’s website, the top 25% of Duck Donuts franchise owners make $847,623 in annual net sales, which looks really good for the investment you are putting in.

To be eligible for this franchise, you must have at least $400,000 in net worth and $200,000 in liquid cash.


4. hurts Donuts

Hurts Donuts
Founded2013
Franchising Since2015
Estimated Outlets20+
Initial Investment$502,000 to $819,000
Franchise Fees$35,000
LiquidityN/A
Royalty Fees5%

Hurts Donut was founded in 2013, and owing to its immense success, it started offering franchises right after two years in 2015.

Today, the company has expanded to more than 20 locations and is seeking franchise candidates to grow the company even further.

To be eligible, you do not need industry experience, but you must meet their financial requirement.

Upon selection, the franchisor will give you 80 hours of classroom and on-the-job training so that you can get started easily.


5. Peace, Love and Little Donuts

Peace, Love and Little Donuts
Founded2009
Franchising Since2016
Estimated Outlets28
Initial Investment$121,200 and $235,100 (excluding real estate)
Franchise Fees$40,000
LiquidityN/A
Royalty FeesN/A

Peace, Love, and Little Donuts was founded by Ron and Marci Razete in Pittsburgh, Pennsylvania, in 2009 and has quickly grown to 28 locations.

The company is known for its delicious variety of donut flavors, such as crunch, chocolate pancakes, fruity pebbles, and more.

What makes Peace, Love, and Little Donuts stand out from other franchises is their distinct hippie vibe and their cute-sized outlets.

If this interests you in this donut franchise, then feel free to get in touch with the company on their website for more details.


6. Randy’s Donuts 

Randy's Donuts 
Founded1952
Franchising Since2019
Estimated Outlets20
Initial Investment$246,750 – $1,080,500
Franchise Fees$35,000 
Liquidity$300,000
Royalty Fees5%

Founded in 1952, Randy’s Donuts is one of the most recognized donuts shops in the world.

Although the company was founded nearly 70 years ago, it started franchising only very recently in 2019.

Currently, the franchisor is looking to expand throughout Southern California, the USA, and the world and is seeking interested candidates for the same.

To be eligible for this donut franchise, you must have a minimum net worth of $1 million dollars, of which $300,000 must be liquid assets.


7. Doughnuttery

Doughnuttery
Founded2012
Franchising Since2017
Estimated Outlets5
Initial Investment$175,400 – $321,700 (includes franchise fee)
Franchise Fees$30,000
Liquidity$250,000
Royalty Fees6%

Founded in 2012, Doughnuttery is known for its freshly prepared and 100 exclusive donut flavors.

Doughnuttery is the most affordable donut franchise that has a high opportunity for growth and the ability to generate revenue from multiple streams.

Also, as per the company’s website, Doughnuttery franchise owners can generate an Average unit revenue of $501,385 in a year on average. This figure shows a great ROI on the investment of $321,700.

Apart from this, the franchisor offers all the needed training, support, and help with site selection, etc., to get you rolling. So if you have a tight budget, then this donut franchise option is best for you.


8. DonutNV

DonutNV
Founded2014
Franchising Since2018
Estimated Outlets12
Initial Investment$245,075 – $313,525
Franchise Fees$59,500
Liquidity$100,000
Royalty FeesN/A

DonutNV was originally founded as Cinnamini Donuts in 2014, but they rebranded themselves as DonutNV and started franchising in 2018.

DonutNV is a unique donut franchise in that they offer mobile units and also offer great flexibility to franchises to operate the unit as per their timings.

If you are looking for an affordable and flexible donut franchise, DonutNV is the best option for you.


9. Honey Dew Donuts

Honey Dew Donuts
Founded1973
Franchising Since1974
Estimated Outlets120
Initial Investment$85,000 – $735,000
Franchise Fees$35,000
Liquidity$100,000
Royalty Fees7%

Honey Dew Donuts is New England’s largest locally-owned donut and coffee shop chain, with over 65 franchises and 120 units in total.

The company started franchising in 1974 and has a strong track record for growth.

The franchisor is seeking candidates to expand in the U.S. So, if you have a minimum net worth of $400,000 and liquid cash of $100,000, then you can apply for this franchise.

The investment starts from $85,000 and goes upto $735,000 depending on different factors. Overall, Honey Dew Donuts is a budget donut franchise that you can consider.


10. Jack’s Donuts

Jack's Donuts
Founded1961
Franchising Since2013
Estimated OutletsN/A
Initial Investment$275,000 – $350,000
Franchise FeesIncluded in initial investment
LiquidityN/A
Royalty FeesN/A

Founded 50 fifty years ago, Jack’s Donuts is a growing donut and coffee franchise in the U.S.

Jack’s Donuts offers a distinctive and high-quality selection of donuts, which is the reason behind its success.

The franchisor offers a six-week training program and ongoing support to help the franchisee set up this new venture,

The best part about this franchise is its low cost of investment. For more details, however, you will have to reach out to the company.


Comparison Of 5 Donut Franchise Opportunities

CompanyFoundedOutletsFranchise FeeInitial InvestmentRoyalty Fee
Dunkin’195012,900+$40,000 – $90,000$526,900 – $1,809,5005.9%
Shipley Do-Nuts1936340+$40,000$655,000 – $1,339,5001%
Duck Donuts2007100+$30,000 – $40,000$424,285 – $608,8355%
Hurts Donuts201320+$35,000$502,000 to $819,0005%
Peace, Love And Little Donuts200928$40,000$121,200 and $235,100N/A

When Should You Choose A Donut Franchise?

Before you decide to invest in a donut franchise, here are some questions you need to ask yourself:

Do I have the needed investment?

On top of the average initial investment of at least $300k, you must also have liquid cash of $100k and a net worth of more than $200k to qualify for most franchises that we have listed in this guide.

So, you must focus on building this net worth and figure out how you will fund this business before you get lost in other steps.

Do I mind having limited control over my business?

When you buy a franchise, you get the benefit of existing brand names and customers. However, you get limited control and have very little say in the business operations.

The franchisor will dictate the menu, recipes, prices, timings, etc., and you will have to follow the same. So, if you do not mind this limitation, only then buy a franchise.


Things You Need To Know Before Choosing A Donut Franchise

In order to choose the right donut franchise, here are things that you must check:

1. Royalty & Marketing Fee

Franchisors charge monthly royalty and marketing fees for allowing you to use their brand name.

This fee could lie anywhere between 2%-10%. So make sure to invest in a donut franchise that charges this fee on the lower side of the bracket.

This is because this fee will decide how much profit you will get to keep.

2. Failure Rate

Every franchise has a failure or success rate. So before you buy a donut franchise, you must check this rate. This rate is determined by the number of franchise outlets that have opened and closed in a year.

This will allow you to dodge risky options and ensure your investment is seemingly safe.

3. Payback Period

The payback period is determined by the initial investment and revenue one generates from a franchise.

So make sure the donut franchise you invest in has a low payback period. The lower this period is, the faster you will be able to recoup your initial investment and enjoy profits.


Wrap Up

Starting a donut franchise is a safe way to start a donut business with minimal risk and an existing customer base.

Since there is a huge demand for donuts in the U.S., the chances of you finding success in this business seems high.

We hope the 10 Best Donut Franchises that we shared with you in this guide were useful.


FAQ’s

How Much Does A Donut Franchise Cost?

The cost to own a donut franchise could vary depending on many factors, such as the franchise you choose, your location, the type of franchise model, etc. However, on average, you can expect to spend between $85,000 and $1,080,500 for a donut franchise.

How Much Can I Make From A Donut Franchise?

The earnings from a donut franchise vary greatly. You can easily expect to make $50,000 – $100,000 in profits in the first few years of business. And if your donut franchise performs really well, then you can even reach a million. 

Is Donut Business Profitable?

Americans consume over 10 billion donuts each year, so you can imagine the kind of demand this business has. So yes, donut businesses are very profitable in the U.S.

Which Is The Cheapest Donut Franchise To Own?

As per the options listed in this guide, Peace, Love, And Little Donuts ($121,200 and $235,100) is the cheapest franchise to own, followed by DonutNV ($245,075 – $313,525) and Doughnuttery ($175,400 – $321,700).

What Is The Profit Margin In Donut Industry?

The average profit margin in the donut industry is 10% to 20%.

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