Parlor Doughnuts operates craft doughnut and coffee shops offering unique bakery items including vegan, gluten-friendly, and keto options. The franchise provides an upscale but accessible bakery environment.
Key Insights
- Parlor Doughnuts grew from a fundamental commitment to solving real problems that affected both customers and service providers, developing systematic approaches that improve efficiency, enhance quality, and create positive outcomes for all stakeholders involved in the business relationship.
- Food sourcing strategies prioritize local suppliers and seasonal ingredients when possible to support community relationships, ensure ingredient freshness, and provide customers with transparent information about food origins while maintaining cost-effectiveness and supply chain reliability.
- Regulatory developments create opportunities for professional service providers who maintain compliance standards and quality certifications, establishing competitive advantages for businesses that invest in proper training, procedures, and documentation to meet industry requirements.
Franchise Fee and Costs to Open
Exploring the financial picture of Parlor Doughnuts gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $437,000 - $762,000, along with a franchise fee of $40,000 - $40,000.
Financial Performance and Revenue
Yearly gross sales of $837,612 and estimated earnings of $100,514 - $125,642 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 5.8-7.8 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Parlor Doughnuts provides comprehensive training for new franchisees. Initial training covers operations and brand standards, lasting two weeks and conducted at their Indianapolis headquarters. Parlor Doughnuts also offers ongoing support and access to a network of resources. The franchisor recommends utilizing these tools for business success.
Legal Considerations
Legal considerations for a Parlor Doughnuts franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
Operating a Parlor Doughnuts franchise involves considerations like the presence of local bakeries and cafes offering similar products, which can influence customer traffic. Ensuring consistent product quality and availability necessitates managing relationships with approved suppliers for specialized ingredients. Furthermore, the daily execution of a novel doughnut-making process and service model requires dedicated staff training and efficient workflow management to maintain operational standards and customer satisfaction.
Franchise Datasheet
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