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Dunkin’ Donuts Franchise Cost & Fees

Date 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. 

 

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.

 

Total Number of franchises Units: 10,800

 

Investment Tables:

Initial Investment
For Freestanding

Type of Fee Low High
Initial Franchise Fee $40,000 $90,000
Building Costs $90,000 $520,000
Site Development Costs $0 $200,000
Additional Development Costs $3,000 $88,000
Real Estate Costs Varies
Equipment, Fixtures and Signs $77,000 $299,000
Electronic Cash Register / Retail Technology System $35,000 $48,000
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 $13,120 $35,400
Marketing Start-Up Fee $10,000 $10,000
Additional Funds for First 3 Months of Operation $100,000 $100,000
Estimated Total (doesn't include real estate costs) $294,020 $1,523,100

 

Shopping Center/Storefront Unit

Type of Fee Low High
Initial Franchise Fee $40,000 $90,000
Building Costs $50,000 $368,000
Site Development Costs $0 $40,000
Additional Development Costs $6,500 $40,000
Real Estate Costs Varies
Equipment, Fixtures and Signs $57,000 $288,000
Electronic Cash Register / Retail Technology System $35,000 $48,000
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 $13,120 $35,400
Marketing Start-Up Fee $10,000 $10,000
Additional Funds for First 3 Months of Operation $80,000 $80,000
Estimated Total (doesn't include real estate costs) $237,020 $1,117,100

 

Gas & Convenience Unit

Type of Fee Low High
Initial Franchise Fee $10,000 $22,500
Building Costs $17,800 $139,500
Additional Development Costs $2,000 $12,500
Real Estate Costs Varies
Equipment, Fixtures and Signs $32,000 $130,000
Electronic Cash Register / Retail Technology System $12,000 $28,000
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 $10,000
Marketing Start-Up Fee $0 $10,000
Additional Funds for First 3 Months of Operation $50,000 $50,000
Estimated Total (doesn't include real estate costs) $97,000 $490,800

 

Alternative Point of Distribution (APUD) Unit

Name of Fee Low High
Initial Franchise Fee $10,000 $22,500
Building Costs $17,800 $139,500
Additional Development Costs $2,000 $12,500
Real Estate Costs Varies
Equipment, Fixtures and Signs $32,000 $130,000
Electronic Cash Register / Retail Technology System $12,000 $28,000
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 $10,000
Marketing Start-Up Fee $0 $10,000
Additional Funds for First 3 Months of Operation $50,000 $50,000
Estimated Total (doesn't include real estate costs) $97,000 $490,800

 

Ongoing Fees

Name of Fee Amount
Continuing Franchise Fee 5.9% of gross sales
Continuing Advertising Fee 5.0% of total gross sales
Franchise Transfer Fee (for a majority interest in the first 3 years) $6,000 or 5% of the Adjusted Sales Price, whichever is greater.
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 (for less than a majority interest) The Then-Current Document Preparation Fee, which is currently $1,000.
Franchise Transfer Fee (transfer to spouse or children) The Then-Current Document Preparation Fee, which is currently $1,000.
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 Document Preparation Fee, which is currently $1,000.
SDA Transfer Fee (transfer to spouse or children) The Then-Current Document Preparation Fee, which is currently $1,000.
Loan Guarantee Fee
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 $1,000.
Fixed Documentation Fee – Transfers The Then-Current Fixed Documentation Fee, which is currently $1,000 or $2,500 as applicable.
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

Date of FDD: 2013

The above information has been compiled from the FDD of Dunkin’ Donuts.

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