Doughnut Franchises – Learn More Interesting Facts

Thinking of investing Inga franchising business, it can heal you great results if you invest in doughnut companies. This is because 10 billion donuts annually are consumed by Americans and the doughnut industry is for about $8.4 billion. Some of the most famous dollar franchises that you must think of investing in our Krispy Kream, Dunkin donuts, and Cinnabon. This article will deal with various other franchises that can be extremely profitable for your doughnut business. However, before investing in such a doughnut franchises business there are various factors that you must take note of. 

Doughnut Franchises - Learn More Interesting Facts

There is no doubt that the donor business can help you make a lot of money but investing in one and establishing a franchise will not come cheap. It is estimated that about $2 million will go into start-up costs as well as franchise fees, finding a new location et cetera but this is not all, while handing over of franchise the donor companies look for more things than just money in the bank. Other than money the owner also gives importance to the location, the market situation, local construction costs et cetera. Most companies also charge royalty fees or a significant percentage of shop sales.

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Here is a list of doughnut franchises that will be profitable to invest in:

1. Krispy Kreme

Krispy Kreme is an extremely famous brand, its first-ever shop was opened in July 1937 in North Carolina and since then the brand has grown to have 1400 shops in about 33 countries in the US. Krispy Kreme is originally known for its original glaze donuts but with time they have grown in variety as well, as they have included chocolate doughnuts, cakes, ice donuts, filled donuts et cetera they also have all special holiday editions during Christmas where they sell Christmas themed donuts. They take part in the national donut day which is on June 4 and give every customer of retreat. Krispy Kreme never really publicly announced its franchise cost but a report says that the franchising cost can vary from two $275,000 to $1.9 million. There on hand cash requirements can go as high as $3 million, where the franchises will have to pay a royalty fee of 4.5% which excludes the ad royalty fee of 1.5%.

2. Duck donuts

Duck donuts were opened by the Digilio family. They opened it because they went on a vacation in North Carolina and saw that that location lacked fresh donuts. So, therefore, they open their first store in North Carolina in 2007. Duck donuts specialize in serving warm doughnuts where the customers are allowed to choose their toppings. You can choose from a variety of doughnuts such as a chocolate-covered banana doughnut or a lemon iced doughnut, the best part is that you can’t customize your doughnut according to your liking.

Currently, the company targets to open about 250 stores in 25 states in the US. Their website also lists the franchise cost which is $40,000, this is for a US location. Generally, the estimated cost to open up a basic franchise varies between $351,164 and $541,448. The price is highly dependent on the location and size of the store. The duck donuts franchise also requires you to have at least $50,000 in liquid funds as well as a net worth of about $500,000.

3. Dunkin’

Dunkin goes back as far as we can remember. It first opened as a restaurant that sold only coffee and donuts. After two years the owner named the restaurant Dunkin donuts and then Opened its first franchise. Recently in 2019, the company rebranded its name to just Dunkin this is because they have a menu full of variations and they are now serving breakfast sandwiches, wraps, bagels, tea, frozen drink, snacks et cetera rather than just selling donuts. For opening a Dunkin franchise, you need to have access to $250,000 in liquid assets as well as a net worth of $50,000. The other requirements are the same as other donut stores. 

4. Cinnabon 

Cinnabon gives you three basic franchising opportunities such as an express bakery which is a smaller product line, a full bakery, and a concession bakery. Investors find that a concession form of a franchise is profitable and productive since you need a food truck or a concession trailer. The franchise fee is also only $30,000, whereas for a start-up you must have $200,000 to $430,000 to invest. 

Conclusion

Americans love donuts. No matter what restaurant you pick, or the location, you will always end up making some kind of profit. Therefore, investing in a donut franchise is a great idea. Before deciding anything further, you must check the above article which will help you get an idea of what restaurant chain fulfils your requirements. If you do not have enough money then the best option for you is to get a concession bakery from Cinnabon, which yields great results and is market-friendly.

Doughnut Franchises – Learn More Interesting Facts

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