One of the first names that come to mind when it comes to coffee and donuts is Dunkin Donuts.
Founded in 1950, this global brand has become a household name for many around the world.
From its signature coffee blends to its delicious treats, Dunkin’ continues to be a favorite among customers everywhere.
Now, entrepreneurs have the opportunity to capitalize on this success by opening their own Dunkin Donuts franchise.
Whether you’re looking for an additional income stream or are just passionate about the food service industry, owning your own Dunkin Donuts franchise could be a great business opportunity.
In this article, we’ll cover all the basics of running a Dunkin Donuts franchise.
We’ll discuss everything from the iconic brand’s history to the requirements and costs associated with owning a franchise.
About Dunkin Donuts Franchise
Dunkin Donuts is a well-known coffee and donut shop franchise operating worldwide.
They are renowned for their signature coffee blends, which feature a unique blend of Arabica and Robusta beans sourced from around the globe.
Additionally, Dunkin Donuts serves over 50 different varieties of donuts, including classics like glazed, maple, jelly-filled, and powdered sugar. Bagels, muffins, and other baked goods are also available.
Dunkin Donuts is immensely popular, not just in the US but around the world.
The company serves over 3 million customers daily – that’s more than 1 billion customers served every year!
As a Dunkin Donuts franchisee, you’ll have the privilege of being part of a successful brand beloved by customers worldwide.
You’ll also benefit from the support and resources of the Dunkin Donuts corporate team, giving you the tools and guidance to be successful.
Dunkin Donuts Franchise History
Dunkin Donuts was founded in 1950 by William Rosenberg in Quincy, Massachusetts.
Born from Rosenberg’s experiences selling food at construction sites and factories, the concept for Dunkin Donuts began when he realized that coffee and donuts were the most popular items.
In 1955, the first Dunkin Donuts franchise opened, and by 1963, the chain had grown to 100 locations.
In 1968, the chain went public. This move helped expand their presence throughout the United States and Canada, and soon after, they began expanding internationally as well.
By 1990, Dunkin Donuts was acquired by Allied Lyons, the parent company of Baskin-Robbins.
Today Dunkin Donuts has become a worldwide phenomenon with over 12,500 restaurants in 46 countries and more than 9,000 locations in the US alone.
They are renowned for their signature donuts and coffee, as well as their breakfast sandwiches and other menu items.
Dunkin Donuts continues to be a leader in the quick-service restaurant world.
The chain’s success can be attributed to its history of innovation and commitment to providing quality products at affordable prices.
As evidenced by its growth over the last 70 years, Dunkin Donuts remains a beloved staple in many communities, making it a great franchising opportunity for entrepreneurs.
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Packages For Dunkin Donuts Franchising
There are now three business options available through the Dunkin’ franchise.
The Chainstore Model :
The Chainstore Model is a take-out counter; it can be used in convenience shops or canteens.
Dealership Model :
The first investment is about 200,000, including the franchise fee, security deposit, and necessary equipment and materials.
Region Franchising:
A contract requires an individual or firm to set up a manufacturing center and expand the agreed-upon area.
Is Dunkin Donuts A Franchise?
Yes, Dunkin’ Donuts offers franchising opportunities. As a franchise-based business model, Dunkin’ Donuts encourages and supports entrepreneurs who are interested in opening and operating their own Dunkin’ Donuts stores.
Dunkin’ Donuts provides comprehensive support to its franchisees, including site selection assistance, store design, and construction, training, ongoing operational support, and marketing programs.
Dunkin Donuts Franchise Model
| Initial Investment | Traditional: $526,900–$1,787,000 Non-traditional: $121,400–$972,800 |
| Franchise | YES |
| Franchise Fee | Traditional: $40,000–$90,000 Non-traditional: $1000–$2,250 per year |
| Royalty Fee | 5.9% |
| Liquidity | $250,000 |
| Estimated Outlets | 2000+ |
How Much Does It Cost To Open A Dunkin Donuts Franchise?
The cost to open a Dunkin Donuts franchise ranges greatly depending on whether you choose to open a traditional or non-traditional location.
Typically, traditional locations require a higher initial investment and ongoing royalty fees than non-traditional locations.
For traditional locations, the franchise fee is typical $40,000 – $90,000, with an initial investment of $526,900 – $1,787,000.
On top of that, a potential franchisee must have liquid assets of at least $250,000 and a net worth of at least $500,000.
Additionally, there will be ongoing costs, such as a 5.9% continuing royalty fee and a 5% advertising fee.
The franchise fee is significantly lower for non-traditional locations such as airports or college campuses, ranging from $1000 to $2,250 annually.
The initial investment is also lower at around $121,400–$972,800, while the continuing royalty remains the same at 5.9%. However, in this case, the advertising fee is reduced to only 2.5%.
When considering opening a Dunkin Donuts franchise, it’s important to consider all associated costs carefully.
While a non-traditional franchise is significantly less expensive than a traditional one, potential franchisees must consider that it may be harder to establish a presence in these locations.
Ultimately, the cost to open a Dunkin Donuts franchise will depend on the location you choose and the individual circumstances of each potential franchisee.
Dunkin Donuts Franchise Requirements
In order to open a Dunkin Donuts franchise, potential franchisees must meet certain requirements set by the company.
First and foremost, franchisees must have liquid assets of at least $1,500,000 and a net worth of at least $3,000,000.
This requirement is in place to help ensure that franchisees have the financial means to support their business operations.
Additionally, potential franchisees must have experience in the multi-unit QSR (Quick Service Restaurant), retail, and/or food service industries.
Dunkin Donuts looks for individuals who understand the complexities of running multiple locations while also delivering exceptional customer service.
Franchisees must also demonstrate a long-term strategic vision for their business and be able to provide an organizational structure that meets the needs of their business model.
Franchisees should follow Dunkin Donuts’ policies and procedures as laid out in its Disclosure Document and Franchise Agreement.
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Dunkin Donuts Franchise Training And Support
Dunkin Donuts prides itself on providing comprehensive training and support to those who open a franchise.
The 15-day Dunkin’ Brand Training Program is designed to provide potential franchise owners with all the necessary knowledge, skills, and tools to run a successful business.
This program consists of 46.5 to 52.5 hours of online training as well as 155-315 hours of on-the-job training in an existing Dunkin Donuts store.
During the 15-day program, participants receive detailed instruction on topics such as Dunkin’ Donuts’ operations, quality assurance procedures, customer service techniques, franchising regulations, health and safety guidelines, and more.
Once a franchise has been established, Dunkin’ Donuts provides ongoing support to help foster its success, including one-on-one coaching from experienced professionals who understand the ins and outs of running this kind of business.
The company also maintains a network of regional development teams equipped with market-specific insights that they can share with franchisees when needed.
Dunkin Donuts Franchise Terms Of Agreement & Renewal
The initial franchise agreement with Dunkin Donuts is typically a 20-year term, renewable for one additional 20-year term if certain requirements are met.
In order to qualify for renewal, franchisees must meet minimum sales volume, maintain the standards and quality of service required by Dunkin Donuts, and demonstrate that their operations are in good financial standing.
All renewal agreements are also subject to approval by Dunkin Donuts’ corporate offices.
Dunkin Donuts Franchise Obligations And Restrictions
Like most franchises, Dunkin Donuts imposes certain restrictions on its franchisees.
For example, franchisees are required to continuously put their best efforts into developing, managing, and running their franchise.
This entails allocating enough time and resources to guarantee complete and total adherence to their duties towards the franchisor, their clients, and others.
Franchisees, along with their officers, directors, owners, members, and partners (as applicable), must personally guarantee that the business entity they choose to utilize to run the company at each restaurant complies with all of its duties under the franchise agreement and lease (if applicable).
Franchisees must also adhere to the system standards set forth by Dunkin’ Donuts, meaning they will not make any changes to the restaurant’s design or layout without prior approval from the franchisor.
Dunkin Donuts Franchise Financial Assistance
Dunkin Donuts does not directly provide financing for its franchisees, but the company has developed strong partnerships with preferred lenders who can offer a wide range of financial options and services.
These lenders are specially chosen for their expertise in providing funding for budding entrepreneurs and businesses.
They offer a variety of financing options specifically tailored to meet the needs of Dunkin Donuts franchisees.
These may include loans, lines of credit, equipment leasing, and more.
The amount of money available through these outlets will vary depending on the individual’s credit rating as well as any collateral they may have to offer.
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Dunkin Comparison
| Company | Dunkin Donuts | Auntie Anne’s |
|---|---|---|
| Year Founded | 1950 | 1988 |
| Franchise Fee | Traditional: $40,000–$90,000 Non-traditional: $1000–$2,250 per year | $10,500–$35,500 |
| Initial Investment | Traditional: $526,900–$1,787,000 Non-traditional: $121,400–$972,800 | $146,050–$523,500 |
| Number of Outlets | 12,500+ | 2000+ |
Conclusion
Dunkin Donuts has established itself as one of the most quick-service restaurants in the United States and worldwide.
With over 3 million dedicated daily customers and a firmly established brand, Dunkin Donuts franchises are attractive investments for entrepreneurs.
By offering comprehensive training and ongoing support to their franchisees, along with preferred financing options from trusted lenders, Dunkin Donuts is an ideal opportunity for those looking to break into the quick-service restaurant industry.
Frequently asked questions
What is the annual profit of the Dunkin' Donuts franchise?
The average Dunkin’ franchisee will earn $124,000 annually or nearly $60 per hour.
Is the Dunkin' Donuts Franchise right for you?
Starting a franchise requires a significant investment, not simply money or finances. You’ll engage in the Dunkin’ brand as you get closer to opening the store.
How to Start a Dunkin' Donuts Business?
Dunkin’ offers a multi-step franchise application procedure that can take 60 to 90 days.
They will analyze your application and business strategy during this period before approving you as a franchisee applicant.
Does Dunkin offer a Franchise opportunity?
Yes, Dunkin offers unbeatable franchise opportunities to entrepreneurs.
how much to franchise a dunkin donuts?
Opening a Dunkin franchise requires an investment of $121,400 – $1,787,700 and an additional $90,000 as an initial franchise fee.
Who is the owner of Dunkin' Donuts?
Dunkin’ Donuts is owned by Dunkin’ Brands, Inc. The company is headquartered in Canton, Massachusetts, and was founded in 1950 by William Rosenberg.
How Many Dunkin Donuts Locations Are There?
There are currently over 12,500 Dunkin Donuts locations across 46 countries.
Is Opening A Dunkin Donuts Franchise Worth It?
Yes, opening a Dunkin’ Donuts franchise is worth it due to the high-profit margin of 15%, well-established brand, and widespread popularity.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.