Submit
Feedback

How much does it cost to franchise a Dunkin Donuts? (2022)

Written by: Patrick Findaro
Last Updated: May 13, 2022
Free Download Our Exclusive Business Service Guide
Download Now
Dunkin Top Franchise

Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 2,650 franchises. And knows the key facts and data that signal a successful franchise system. Upon extensive review, our team was able to compile the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: Dunkin’, as well as the requirements that encompass its franchise application process.

Top 20 Most Popular Franchises: Dunkin’

The story of Dunkin’ Donuts began in 1948 when its founder, Bill Rosenberg, opened a donut and coffee restaurant in Quincy, Massachusetts called “Open Kettle.” After seeing his business grow by selling doughnuts for five cents and coffee for ten cents, Rosenberg renamed his restaurant to “Dunkin’ Donuts” in 1950, after a brainstorming session with his executives. “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well merchandised stores,”. A philosophy which still holds true today.

Dunkin' Franchise

Today

Franchising began 5 years later, and by 1960, the number of restaurants had already grown to over 100 shops. Today, Dunkin’ Donuts stores can be found in over 32 countries, serving over 70 varieties of doughnuts along with hot and cold coffee drinks, bagels, breakfast sandwiches and other baked goods. Additionally, Dunkin’s parent company, Dunkin’ Brands inc. also franchises Baskin-Robbins, and the two concepts are on occasion also co-branded. Dunkin’ headquarter is currently in Canton, Massachusetts. David Hoffmann, CEO who was President of High Growth Markets at McDonald’s Corporation, is in charge of running it.

How Much Does a Dunkin’ Donuts Franchise Cost?

The total investment amount to establish a Dunkin’ franchise ranges from $395,500 to $1,597,200. This includes the company’s franchise fee which ranges from $40,000 to $90,000. Once the store has been built and operations begin, franchisees are then expected to pay Dunkin’s corporate team a royalty fee of 5.9% on gross sales, and a marketing fee of 5% on gross sales in exchange for the marketing services provided by the franchisor. The franchisor is particularly looking for experienced candidates who are willing to run the business on a daily basis. And who has enough capital to support a multi-unit franchise development?

That said, the minimum net worth required to own a Dunkin’ franchise ranges from $250,000 to $500,000 and the applicant must have liquid assets ranging from $125,000 to $250,000.

Dunkin' Franchise

Dunkin’ in Numbers

 

When evaluating a Dunkin’ franchise’s potential for growth, one does not need to go beyond Quick Service Restaurant (QSR) numbers to better understand the prospect for success of the opportunity at hand. The fast-food industry generated $200 billion in revenues in 2015. There was an expectation on the industry to have an annual growth of 2.5% for the following subsequent years. Dunkin’ itself, leads US. QSR concept and in 2019 ranked number 8 in QSR Magazine’s top 50. Limited data was available on the financial status of the company’s franchisees. But only 144 franchises ceased operations in 2019. An insignificant value when contrasted with the total amount of franchises under Dunkin’s franchise system. 

Moving forward, Dunkin’ is looking to establish new units across a number of states in the U.S.

Summary

Investing in a Dunkin’ franchise is an interesting opportunity, especially for individuals looking to make their way into the QSR industry.  The prospects for growth and success within the industry and the Dunkin’ brand itself, are extensive and a number of markets continue to be available as they move forward with growing their presence across the country. If you are an individual with extensive management experience and are willing to invest an amount ranging from $395,500 to $1,597,200 or more, Dunkin’ is the right franchise for you!

 

franchise advisor

Latest Articles

Dairy Queen Franchise: Growing Despite Payback Period (2022)

Dairy Queen Franchise: Growing Despite Payback Period (2022)

Is FRANCHISE GATOR A Good Site To Find A Franchise?

Is FRANCHISE GATOR A Good Site To Find A Franchise?

Deli Delicious: The Franchise That Won’t Play Fair (2022)

Deli Delicious: The Franchise That Won’t Play Fair (2022)

6 Ways to Find Out The Right Franchise Opportunities

6 Ways to Find Out The Right Franchise Opportunities

BizBuySell: Great for Businesses, Terrible for Franchises (2022)

BizBuySell: Great for Businesses, Terrible for Franchises (2022)

Share link

Or

Filters

Business Name

Industry

Investment amount




Delete Listing

*

Support Form

Please fill out the form below with any technical issues, questions or feedback you might have.

Menu

Submit Feedback