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Donuts ‘n’ Coffee – A Winning Combo

In the northeastern United States, the vision of a Dunkin’ Donuts shop is almost as common a sight as storm clouds off the Atlantic – or someone wearing a Red Sox cap.  Way back in 1946, Bill Rosenberg started delivering breakfast foods and snacks to businesses in and around Boston.  He parlayed that success four years later into a single doughnut shop in Quincy, Mass., renaming it Dunkin’ Donuts in 1952.  As a result, the legend was born.  In addition to serving up dozens of varieties of fried pastries, Dunkin’ Donuts is known for its highly regarded coffee and other breakfast foods, including muffins and bagels.  The chain reportedly sells 2.7 million cups of coffee a day, which works out to more than 985 million a year.

Dunkin’ Donuts Franchise Review

The first Dunkin’ Donuts franchise opened in 1955, and the corporate office is still located near Boston.  Until early 2006, the company was a division of Allied Domecq, a huge multinational corporation based in the U.K. that represents such household names as Beefeater gin and many other brands of liquor.  Three U.S. private equity firms subsequently pooled their resources in a buyout, with a sales price of $2.43 billion.  That will get you a whole lot of sprinkles!  Other restaurants in the fold include Togo’s, a sandwich shop franchise, and Baskin-Robbins ice cream stores.  It is not unusual for one franchise location to serve all three brands, thereby allowing an owner to capture breakfast, lunch and snack crowds in the same space.  There are more than 7,000 Dunkin’ Donuts locations in thirty different countries.  More than 5,200 of those stores are in the United States, and many franchisees own more than one establishment.  In fact, one of the requirements for prospective franchisees is their desire to eventually own and operate at least five restaurants.

Dunkin’ Donuts Franchise Information & Costs

To become a Dunkin’ Donuts franchisee, the first investment to make involves paying a $50,000 franchise fee to the home office.  This money covers such things as initial training and consultation from a whole host of team members on such diverse subjects as selecting a suitable location, turning an existing building into a Dunkin’ Donuts shop – or finding contractors to build one from scratch – as well as hiring and training employees and learning the proper way to fry and decorate the various doughnut treats that will eventually stock your shelves.  In order to qualify as a franchisee, Dunkin’ Donuts asks that you have a minimum net worth of $400,000, of which at least half is in cash.  Your minimum total investment will run anywhere from $250,000 to $1.1 million, depending upon real estate values, lease arrangements, square footage of the store, and the scope of equipment you purchase.  Additionally, franchisees pay 5.9 percent of their annual gross sales as an ongoing royalty fee – this helps to cover costs at the main office – and an additional five percent as an advertising fee.  The company creates extensive national and regional ad campaigns to benefit its franchise owners.

Your Dunkin’ Donuts Support Team
As with any business opportunity, the level of support granted by the parent company should be a prime factor of consideration when deciding which franchise to purchase.  The Dunkin’ Donuts team consists of development and construction experts to help you get your store looking just right.  There is also operational support in the form of ongoing training – both for owner / operators and managers – plus marketing experts to help fine-tune the message to the clientele in your franchise area.  Franchisees also enjoy a corporation-wide point-of-sale system that includes cash register operations and proprietary back-office software to aid in purchasing, inventory management, and payroll.

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