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Dunkin’ Donuts Franchise Cost & Fees

Date of Incorporation: 1954
Franchising Since: 1955
Headquarters: Canton, Massachusetts

Business Description: A Dunkin' Donuts Store sells coffee, donuts, bagels, muffins, compatible bakery products, sandwiches, as well as other food items and beverages compatible with the franchisor’s concept.

Franchise Offer: The franchise offered is for the right to operate a Restaurant, selling doughnuts, coffee, bagels, muffins, compatible bakery products, croissants, pizzas, snacks and other sandwiches and beverages that Dunkin’ Donuts approves. Dunkin’ Donuts encourages franchisees to develop a network of Restaurants within a targeted area or areas under the Store Development Program.  

Financial Assistance: The franchisor facilitates through third party lenders, financing for qualified franchisees. The amount of financing and period of repayment varies by program, circumstances, and creditworthiness of the applicant. The franchisor also participates in the Small Business Association lending program.

Training and Assistance: Two individuals, one of whom must be the franchisee or another partner, shareholder (if franchisee is a corporation) or member (if franchisee is a limited liability company) and the other must be a designated representative; must successfully complete the required training program and any certification requirements. The Dunkin’ Donuts Core Initial Training program takes a minimum of 24 days (non-consecutive) to complete the classroom/instructional phases. This does not including web-based training, in restaurant practice (typically in the franchisee’s home market) or travel time. The web-based training program, referred to as "Dunkin' Brands Online University" is the required training program for franchisees, managers and their crew. Franchisees must attend and require their employees to attend further training as Dunkin’ Donuts may from time to time require.

Territory: The franchisee is not granted an exclusive territory. Dunkin’ Donuts has the absolute right to distribute (or license others to distribute) products identified by its trademarks (or by any other name or trademark) anywhere and in any form (e.g., in packaged form or otherwise), regardless of the proximity to the franchisee’s location, through any distribution methods or channels.

Term of Agreement and Renewal: The length of the franchise term is typically 20 years. If all requirements are complied with, the franchisee may purchase an additional term.

Obligations and Restrictions: The franchisee must devote continuous best efforts to the development, management and operation of the franchised business. This means devoting sufficient time and resources to ensure full and complete compliance with the franchisees obligations to the franchise. The franchise granted is limited to one location and all sales must be made from that location. Franchisees are not permitted to sell or distribute goods or services through the use of the Internet or other electronic communications.

Estimated Number of Units: 11,750

Investment Tables:
Initial Investment for a Freestanding Unit
Name of Fee Low High
Initial Franchise Fee $40,000 $90,000
Building Costs $90,000 $569,000
Site Development Costs $3,900 $295,364
Additional Development Costs $4,754 150,000
Real Estate Costs Varies
Equipment, Fixtures and Signs $53,840 $269,250
Electronic Cash Register / Retail Technology System $24,700 $61,000
Opening Inventory $8,000 $20,000
Miscellaneous Opening Costs $9,500 $70,000
Licenses, Permits, Fees and Deposits $3,500 $5,500
Uniforms $400 $1,200
Insurance $4,500 $16,000
Travel and Living Expenses While Training $2,000 $35,000
Marketing Start-Up Fee $0 $10,000
Additional Funds for First 3 Months of Operation $0 $100,000
Estimated Total (doesn't include real estate costs) $250,094 $1,692,314
Initial Investment for a Shopping Center/Storefront Unit
Name of Fee Low High
Initial Franchise Fee $40,000 $90,000
Building Costs $65,921 $450,000
Site Development Costs $3,000 $56,500
Additional Development Costs $9,600 $34,835
Real Estate Costs Varies
Equipment, Fixtures and Signs $57,500 $265,500
Electronic Cash Register / Retail Technology System $24,700 $53,345
Opening Inventory $8,000 $20,000
Miscellaneous Opening Costs $9,500 $70,000
Licenses, Permits, Fees and Deposits $3,500 $5,500
Uniforms $400 $1,200
Insurance $4,500 $16,000
Travel and Living Expenses While Training $2,000 $35,000
Marketing Start-Up Fee $0 $10,000
Additional Funds for First 3 Months of Operation $0 $80,000
Estimated Total (doesn't include real estate costs) $228,621 $1,187,880
Initial Investment for a Gas & Convenience Unit
Name of Fee Low High
Initial Franchise Fee $10,000 $45,000
Building Costs $25,000 $148,664
Site Development Costs $1,325 $27,500
Additional Development Costs $2,103 $22,144
Real Estate Costs Varies
Equipment, Fixtures and Signs $41,000 $211,678
Electronic Cash Register / Retail Technology System $12,000 $59,600
Opening Inventory $4,000 $10,000
Miscellaneous Opening Costs $9,500 $70,500
Licenses, Permits, Fees and Deposits $500 $2,500
Uniforms $400 $800
Insurance $4,500 $16,000
Travel and Living Expenses While Training $0 $35,000
Marketing Start-Up Fee $0 $10,000
Additional Funds for First 3 Months of Operation $0 $70,000
Estimated Total (doesn't include real estate costs) $110,328 $729,386
Initial Investment for an Alternative Point of Distribution (APUD) Unit
Name of Fee Low High
Initial Franchise Fee $10,000 $22,500
Building Costs $19,500 $139,427
Site Development Costs Not Applicable
Additional Development Costs $3,200 $12,551
Real Estate Costs Varies
Equipment, Fixtures and Signs $25,000 $140,000
Electronic Cash Register / Retail Technology System $16,000 $39,450
Opening Inventory $4,000 $10,000
Miscellaneous Opening Costs $9,500 $70,500
Licenses, Permits, Fees and Deposits $500 $1,500
Uniforms $0 $800
Insurance $4,500 $16,000
Travel and Living Expenses While Training $2,000 $35,000
Marketing Start-Up Fee $5,000 $5,000
Additional Funds for First 3 Months of Operation $0 $50,000
Estimated Total (doesn't include real estate costs) $94,200 $542,728
Other Fees
Type of Fee Amount
Continuing Franchise Fee 5.9% of gross sales.
Continuing Advertising Fee 5% of total gross sales.
Franchise Transfer Fee (for a majority interest in the first 3 years) $12,500 (or $20,000 if the restaurant is a DD/BR Combo) plus the amount listed in table in the FDD.
Franchise Transfer Fee (for a majority interest, after 3 years have elapsed) An amount based upon the Gross Sales of the Store for the 12 months preceding the date of the contract of sale.
Franchise Transfer Fee (no change of control) The Then-current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
Franchise Transfer Fee (transfer to spouse or children) The Then-current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
Audit Costs The franchisors cost to audit your gross sales reports, including legal and accounting fees.
Immigration Status Review Costs The franchisors out-of-pocket costs to hire attorneys or others.
Interest, Late Fees, and Collection Costs Then current late fee or dishonored check fee, and if applicable, interest on unpaid amount at 1.5% per month or highest rate allowed by law.
Indemnification Varies.
SDA Transfer Fee $10,000
SDA Transfer Fee (for a less than majority interest) The Then-current Fixed Documentation Fee, which is currently $2,000 plus an additional $2,000 for each new transferee.
SDA Transfer Fee (transfer to spouse or children) The Then-current Fixed Documentation Fee, which is currently $2,000 plus an additional $2,000 for each new transferee.
Loan Guarantee Fee 0.5% of the loan amount.
Lease Fee Varies.
Lease Guaranty Fee Agreement Varies.
Fixed Documentation Fee – Generally The Then-Current Fixed Documentation Fee, which is currently $2,000
Fixed Documentation Fee – Transfers The Then-current Fixed Documentation Fee, which is currently $2,000 plus an additional $2,000 for each new transferee.
Costs for tests used to approve additional supplier(s) The franchisor’s out of pocket and internal costs allocated to this activity, typically $1,000 to $10,000 depending on the complexity of the testing.
CDC Buy-Out Option Varies.
CDC Annual Lease Administration Fee $1,200 each year.
CDC Rent, if Payable to Franchisor Varies.
CDC Offset Varies.

The above information has been taken from the FDD of Dunlin' Donuts. Year of FDD: 2016

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