Is
Dunkin' Donuts
a franchise?
How many
Dunkin' Donuts
franchises
are there?
What are the
Dunkin' Donuts
franchise
fees?
Initial Franchise Fees
Development Area Type 1 franchises require an Initial Franchise Fee of $90,000, whereas Development Area Type 2 franchises have a fee of $80,000.
Continuing Franchise Fee
Franchisees are obligated to pay a Continuing Franchise Fee, which amounts to 5.9% of Gross Sales.
Continuing Advertising Fee
An additional fee is the Continuing Advertising Fee, set at 5.0% of total Gross Sales.
Loyalty Program Contribution
The Loyalty Program Contribution varies, with the current rate at 1.6% of Loyalty Program Sales.
Franchise Transfer Fee
For the transfer of a majority interest within the first three years, the fee is $12,500, which increases to $20,000 for Combo Restaurants.
Marketing Start-Up Fee
A Marketing Start-Up Fee is required for each opening, remodel, or relocation, with a minimum fee of $10,000.
Technology Fee
The initial hardware and software costs for certain technology (like tablets for order-taking) can range from $2,500 to $4,000, with ongoing annual maintenance costs of approximately $200 to $300. Initial configuration and installation costs range from $900 to $1,200 per tablet.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
Dunkin' Donuts
franchise?
Starting a Dunkin' franchise involves various costs, ranging from initial franchise fees to building and miscellaneous opening costs. The total investment necessary to begin operation of a Dunkin’ franchise ranges from $121,400 to $1,809,500, depending on the type of franchise.
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
Dunkin' Donuts
provide
training
to its
franchisees?
Dunkin' Donuts provides training for franchisees. The training encompasses various aspects to ensure that all employees are well-versed in the restaurant standards and required procedures. Here are the key points regarding the training provided:
Formal and Informal Training Sessions:
- Dunkin' Donuts believes that training is crucial for the success of their system and hence, they provide both formal and informal training sessions to franchisees from time to time.
- Franchisees are required to attend these training sessions along with their employees as mandated by Dunkin' Donuts.
- Some of these training sessions may require travel to a Certified Training Restaurant.
Online Database Access:
- Franchisees are provided access to and training for Dunkin' Donuts' "Ops Source" online database where they can use and download electronic copies of all brand manuals for each system they are franchised to operate.
Initial Training Program:
- Dunkin' Donuts covers the cost of presenting the initial training program for the required number of participants based on network size.
- However, franchisees must cover the cost for uniforms, accommodations, wages, and travel expenses for themselves and their employees.
- The initial training program lasts for four to eight weeks depending on the production platform and other factors.
Ongoing Training:
- Dunkin' Donuts has a field-based learning and deployment team that supports ongoing operations and the deployment of brand initiatives in the franchisees' area.
Does
Dunkin' Donuts
provides
territory
protection?
Franchisees are granted the right to operate one Restaurant at a specific location specified in the FA or its exhibits, and only at that location. They will not be granted any additional rights, any minimum territory, or other protected rights.
This means that franchisees operate from a specific approved location, and there is no provision for an exclusive territory or protection against competition from other franchisees, outlets directly owned by the franchisor, or other distribution channels overseen by the franchisor.
Can a
Dunkin' Donuts
franchise
be run as
a passive
investment?
Dunkin' franchise can be operated with a recruited acting manager, particularly if the franchisee is unable to dedicate their full time to the restaurant business, especially during the first year of operation.
The franchisee may expect to perform a substantial amount of manual labor initially, but as sales and profits increase, they may not need to work a full shift in the restaurant every day. However, they must be willing and able to meet this requirement if necessary. If a franchisee decides to use a separate on-premises manager, this manager must be trained in accordance with Dunkin's training requirements.
While it's recommended that the on-premises manager have an ownership interest in the franchisee's corporation, limited liability company (LLC), or partnership, it's not a requirement. This on-premises manager can handle the day-to-day operations of the restaurant, ensuring that the franchisee's personal "on-premises" supervision is not required, thus allowing for a more passive investment approach by the franchisee.
