If you are looking to invest in a Donut or Coffee franchise, then what better than Dunkin’?
Dunkin’ is one the most loved brands not just in the U.S. but around the world, and if that makes you wonder then how much does a Dunkin’ franchise owner make, then we got you!
In this guide, find minute details of owning a Dunkin’ franchise, including its pros and cons, profits, investments, payback period, and more!
About Dunkin’
Dunkin’ is a leading American donut and coffee chain that serves over 70 varieties of donuts, bagels, breakfast sandwiches, coffee, and other baked items.
Dunkin’ was founded in Quincy, Massachusetts, in 1948 by William Rosenberg under the name of “Open Kettle.” Then in 1950, after a lot of brainstorming, the owner renamed it Dunkin’ Donuts.
Consequently, in 1955, the first Dunkin’ Donuts franchise opened as QSR, and ever since then, it has grown to over 10,000 locations in 60+ countries.
If you are interested in opening a Dunkin’ franchise, then you should know that it is costly.
To find out the investments and profit details keep on reading.
How Much Does A Dunkin’ Franchise Owner Make?
Dunkin’ offers a variety of franchise models to choose from, for example, traditional, drive-through, non-traditional, etc., and the sales of each of these outlets vary.
However, based on the median of all types of Dunkin’ franchise models, a Dunkin’ franchise owner makes $1,056,521 in sales on average.
Here is the individual sales figure for different types of Dunkin’ franchise models:
| Types of Restaurant | Median sales | Drive-Thru | Non Drive-Thru |
|---|---|---|---|
| Freestanding | $1,290,494 | $1,449,514 | $1,131,473 |
| Gas & Convenience Restaurants | $909,609 | $1,119,977 | $699,240 |
| Shopping Center / Storefront: | $1,092,724 | $1,285,840 | $899,608 |
| Non-traditional Outlets | $1,024,393 | – | $1,024,393 |
| Average | $1,079,305 | $1,285,110 | $938,679 |
Inital Investment Requirments for Dunkin’ Franchise
Dunkin’ offers two types of franchise opportunities, and the investment requirement varies for both:
For Traditional Opportunity
| Cost or Fee | Amount or Percentage |
|---|---|
| Franchise fee | 40K – 90K |
| Store size | 750 – 3100 sq.ft. |
| Investment range | $526,900 – $1,809,500 |
| Minimum net worth | $500K |
| Advertising fee | 5% |
| Investment Range | 5.9% |
For Non-Traditional Opportunity
| Cost or Fee | Amount or Percentage |
|---|---|
| Franchise fee | $10,000 – $90,000 |
| Store size | from 500 sq.ft. |
| Investment range | $121,400 – $1,310,500 |
| Minimum net worth | $500K |
| Advertising fee | 5% |
| Continuing franchise fee | 5.9% |
((https://www.dunkinfranchising.com/investments/))
How Much Does Dunkin’ Employee Earn?
The pay of Dunkin’ employees may vary slightly based on their title, location, department, skills, etc.
However, according to Indeed, the average pay for Dunkin’ employees ranges from $9.50 per hour for the position of Mobile Assistant to $22.36 per hour for the position of Staff Accountant.
In yearly terms, the average pay for a Dunkin’ employee ranges from $27,964 per year for the position of Assistant Store Manager to $92,249 per year for the position of F&B Manager.
Pros & Cons Of Dunkin’ Franchise
Pros Of Dunkin’ Franchise
- International presence.
- Offers support and training.
- Choose from different types of franchise models.
- Proven business model.
- High profitability.
Cons Of Dunkin’ Franchise
- High cost investment needed.
- Internal and external competition.
- High intital franchise fees.
Dunkin’ Franchise Average Revenue & Profit
As already mentioned before, a Dunkin’ franchise owner makes annual sales of $1,056,521 on average.
And with a 10%-20% profit margin, the franchise owners can expect to make profits in the range of $116,206 – $232,413 a year, with the average being $174,310 a year.
The profit you earn as a Dunkin’ franchise owner will vary based on the initial investment you put in, the size of your outlet, the franchise model, etc.
Dunkin’ Franchise Failure Rate
To find out the franchise failure rate of Dunkin’, let’s see the table below:
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 8,091 | 8,282 | +191 |
| 2020 | 8,282 | 7,790 | -492 |
| 2021 | 7,790 | 8,010 | +220 |
For the Franchised outlets:
- In 2019, the growth rate was (191)/8,091×100≈2.36%
- In 2020, the failure rate was (492)/8,282×100≈5.94%
- In 2021, the growth rate was (220)/7,790×100≈2.82%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Dunkin’ Donuts grew from 2019 to 2021, showing a growth rate between 2.36% and 2.82%.
Overall, Dunkin’ has declined at the speed of 27 units a year. However, the decline was in the year of the Pandemic, and after that the Dunkin’ Donuts franchise has expanded in the years 2019-2021, showing a total growth rate between 2.36% and 2.82%.
Dunkin’ Franchise Payback Period
To find out the payback period of the Dunkin’ Franchise, let us do some calculations:
| AVERAGE INVESTMENT | $537,850 |
| AVERAGE REVENUE PER OWNER | $1,056,521 |
| AVERAGE PROFIT PERCENTAGE | 15% |
| AVERAGE PROFIT PER YEAR | $174,310 |
| AVERAGE PAYBACK PERIOD | 3 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 537850/174310 = 3.08 = 3 Years based on median
The average investment for a Dunkin’ Franchise is $537,850.
With an average profit percentage of 15%, the average profit per year is $174,310.
This means that the average payback period for a Dunkin’ Franchise is approximately 3 years, and the total investment of $537,850 would be recovered within this period.
Facts About Dunkin’
- Dunkin’ was called Open Kettle back when it had just started.
- Mister Donuts and Baskin-Robbins are subsidiaries of Dunkin’.
- Dunkin’ sells 2 billion cups of coffee every day globally.
- There are 15,000+ ways to order coffee at Dunkin’s.
- In DD’s early days, they used to sell coffee for just 10 cents and donuts for five cents.
- To ensure that the Dunkin’ chain meets quality standards, Dunkin’ has quality experts who taste 200 coffees every day.
- Dunkin’s is really popular in South Korea and has the most number of Dunkin’ franchises there.
- 60% of Dunkin’s sales come from coffee rather than donuts.
- A couple got married inside DD in an outlet in New Jersey.
- Dunkin’ sells approximately 2.9 billion donuts a year globally.
- Almost every item on the Dunkin’ menu can be customized.
((https://www.eatthis.com/dunkin-donuts/))
What Is Dunkin’ Best Known For?
Dunkin is known for serving delicious donuts and coffee, among other items, in a wide range of flavors and customizable options.
Dunkin’ is also America’s favorite coffee and donut chain, the reason being that Dunkin’ never compromises on the quality of their items and serves their coffees and donuts fresh.
Here are some of the most popular donuts that you can try at Dunkin’:
- Chocolate Frosted
- Glazed Donut
- Powdered Sugar
- Jelly Donut
- Strawberry Frosted
- Blueberry Cake
- Boston Kreme
- Bavarian Kreme
Is Dunkin’s Franchise Profitable?
Dunkin’s is widely popular globally, and it sells 2 billion cups of coffee every day. So this popular demand is an indication of how profitable Dunkin’ must be.
So yes, Dunkin’ is a very profitable franchise to invest in, with franchise owners earning $174,310 in profits per year on average.
The best part is although Dunkin’ requires a high-cost investment, you can recover the initial investment amount within 4-5 years on average and then enjoy a major portion of the profits thereafter.
Dunkin’ Franchise Earning Potential
The Dunkin’ franchise has the potential to earn high amounts of money.
In fact, Dunkin’ franchise owners have made as much as $232,413 in annual profits.
The profit that you can earn as a Dunkin’ franchise owner is hugely dependent on the popularity in your area.
Also, Dunkin’, formally known as Dunkin Donuts, changed its name to break the image of just being a breakfast appropriate chain which will help the company and franchises to potentially make even more money.
Wrap Up
Dunkin’ is a very popular donut and coffee chain in the world, and although it does require a high-cost initial investment in the range of $121,400 – $1,310,500, it is a very profitable franchise.
The payback period of the Dunkin’ franchise is also decent (4-5 years on average), and its failure rate is low.
The only loophole in buying this franchise is that it charges a high franchise fee ($10,000 – $90,000), but we do not think it should deter you from buying this franchise.
Frequently Asked Question
Does Dunkin' offer any financial incentive?
Dunkin’ may offer to reduce your ongoing fees or initial franchise fees under special circumstances or for a multi-unit opportunity.
How much royalty and advertising fee does Dunkin' charge?
Dunkin’ charge a 5% advertising fee and 5.9% continuing franchise fee.
What is the minimum requirments to qualify for a Dunkin' franchise?
The interested candidate need to have a net worth of $500,000 and minimum liquid assets of $250,000.
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.
Who founded Dunkin' Donuts?
Dunkin’ Donuts was founded by Bill Rosenberg in Quincy, Massachusetts in 1950.
Where is Dunkin' Donuts Headquartered?
Dunkin’ Donuts is headquartered in Canton, 130 Royall St, United States, and has 1 office location.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.