About Doughnuttery Franchise
Doughnuttery is a specialty dessert franchise known for freshly made, hot mini doughnuts, gourmet coffee, and other unique food and beverage items.
The brand creates a fun, indulgent experience using signature recipes and high quality ingredients.
The franchise fee is $30,000, and the company has been franchising since 2018.
Doughnuttery Franchise Cost & Fees
Minimum Investment
$175K
Average Investment
$249K
Maximum Investment
$322K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of previous month’s Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of previous month’s Gross Sales each month | National brand fund |
| Total Investment Range | $175,400 – $321,700 | Includes build-out, inventory, working capital |
The investment range of $175K–$322K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of previous month’s Gross Sales) and marketing fee (2% of previous month’s Gross Sales each month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Real Estate/Rent | $3,000 | $10,000 |
| Lease, Utility and Security Deposits | $9,000 | $30,000 |
| Design & Architectural Fees | $7,500 | $10,000 |
| Leasehold Improvements | $40,000 | $75,000 |
| Furniture and Fixtures | $2,500 | $5,000 |
| Signage | $2,500 | $6,000 |
| Computer System | $4,500 | $6,000 |
| Professional Fees | $3,000 | $6,200 |
| Equipment | $28,750 | $50,000 |
| Business License and Permits | $1,000 | $1,500 |
| Initial Inventory | $5,000 | $12,000 |
| Grand Opening Advertising | $2,500 | $5,000 |
| Initial Training | $2,650 | $10,000 |
| Insurance | $3,500 | $5,000 |
| Additional Funds – 3 months | $30,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 |
| Renewal Fee | $10,000, plus any applicable taxes |
| Technology Fee | $150 per month (POS license fee) |
| Audit Fee | Cost of inspection or audit |
| Local Advertising | 1.5% of previous month’s Gross Sales each month |
| Cooperative Advertising Programs | Up to 2% of Gross Sales, unless increased by vote of 67% or more of the Doughnuttery Shops operating in your defined Advertising Coverage Area |
| Additional Training and Assistance and On-Site Consultation Services | Our then current training fee per attendee, not to exceed $500 per person, per week plus all of your costs and our costs (with our costs not to exceed $500 per trainer, per day) |
| Relocation | Our costs, a fee of $7,500, plus any applicable taxes |
| Product and Service Purchases | Will vary depending on products and services purchased, but will include, at a minimum, reimbursing us, our affiliates, designated and approved vendors for all amounts incurred |
| Operations Manual (replacement) | Then-applicable charge (currently $500) |
| Testing (new products/suppliers) | A fee equal not to exceed the reasonable cost of inspection and actual cost of test |
| Interest on overdue amounts | Maximum rate allowable by applicable law or, if no maximum rate allowable by applicable law, the higher of 18% and 4% above prime rate per month |
| Insurance (non-compliance) | Amount of unpaid premiums and related costs, non-compliance fees and late charges, plus an administrative charge of $500 per event |
| Insufficient Funds Processing Fee | $200, plus our expenses |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Brand Damages | All damages, costs, expenses, attorneys' and experts' fees, lost Royalties, lost Fund contributions, lost profits, loss of goodwill and damage to our Marks and reputation, lost opportunities, travel and personnel costs, expenses that we may incur in developing or finding another franchise owner to develop a new Doughnuttery Shop in the Territory, and any other lost payments or benefits we would have received for the balance of the Term after the effective date of termination |
| Non-Compliance Charge | $500 per day per violation |
| Management Fee | $500 per day that we (or a third party) manage the Shop (plus costs and expenses) |
| Indemnification | All amounts (including attorneys’ fees) incurred by us or otherwise required to be paid |
| De-Identification | All amounts incurred by us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | At least one week |
| Classroom Training | 18 hours |
| On-the-Job Training | 26 hours |
| Training Location | New York, New York |
| Additional Training | The franchisor may require franchisees and experienced employees to attend periodic online or in-person training courses (up to 10 days per year in-person) and an annual national meeting (up to 3 days). Franchisees can request additional training at their expense. Shop Managers hired after opening may also be required to complete initial and ongoing training, with fees not exceeding $500 per person for initial training and $500 per person per week for ongoing training. Franchisees are responsible for all travel and living expenses for attendees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (for traditional locations), Non-exclusive (for Captive Site Locations) |
| Exclusive Territory | No |
| Territory Size | Minimum radius of one-eighth mile in urban areas or two-mile radius in suburban/rural areas |
| Description | For traditional locations, a specific geographic area (Territory) is approved, typically a minimum of one-eighth mile radius in urban areas or a two-mile radius in suburban/rural areas. Within this territory, the franchisor and its affiliates will not operate or grant another Doughnuttery Shop franchise, provided the franchisee is in full compliance. However, the franchisor retains significant rights, including operating other concepts, selling products through alternative channels (e.g., internet), and establishing Doughnuttery Shops at 'Captive Site Locations' (e.g., airports, malls) within or outside the territory, which are non-exclusive. Franchisees may not operate outside their approved Premises or Territory without consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two 5-year terms |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, franchisees must be in full compliance with the Franchise Agreement, provide timely notice, pay the renewal fee, maintain possession of the premises (or secure an approved substitute), remodel the Shop to current standards (regardless of cost), and sign the franchisor's then-current Franchise Agreement and a general release of claims. The terms of the new agreement may differ materially, including potentially reduced territory or increased fees. |
| Transfer Fee | $7,500 |
| Transfer Conditions | Transfers require prior written approval and are subject to numerous conditions. The transferee must qualify (business experience, aptitude, financial resources) and not be involved in a Competitive Business. All amounts owed to the franchisor and affiliates must be paid, and the franchisee must not be in default. The landlord must consent to the lease transfer, and the transferee must complete training and sign the then-current Franchise Agreement. The transferring franchisee must sign a general release and agree to a post-transfer non-compete. Existing Shop deficiencies must be corrected or the transferee must agree to upgrade the Shop. |
| Termination for Cause | The franchisor may terminate the agreement for various causes, including material misrepresentation, failure to secure a site/lease/open on time, failure to complete training, abandonment, unauthorized transfers, felony conviction, dishonest conduct, unauthorized use of confidential information, failure to pay amounts due, failure to maintain required insurance, health/safety violations, use of unauthorized products, understating sales, repeated defaults, insolvency, non-compliance with anti-terrorism laws, false records, refusal of inspection, or cross-default with other agreements. Cure periods vary from 72 hours to 180 days, with many defaults being non-curable. |
| Non-Compete Period | 3 years |
| Non-Compete Details | After termination or expiration, the franchisee and owners are prohibited for three years from having any direct or indirect interest in, or performing services for, any Competitive Business. This restriction applies to the former Shop premises, within the Territory, within a 10-mile radius of the Territory, or within 10 miles of any other Doughnuttery Shop (franchised, affiliate, or company-owned) in operation or under construction at the time of termination/expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchise owners are expected to participate in the direct operation of their franchise on a full-time basis. If the franchisee is a legal entity, a 'Managing Owner' (shareholder, member, or partner) must be appointed to oversee and supervise the Shop’s operation. The Shop must always be under the full-time direct, on-premises supervision of the franchisee (or Managing Owner) or an approved Shop Manager. |
| Required Suppliers | Franchisees must purchase Proprietary Products (doughnuts, coffee, other food/beverage items, ingredients, condiments, equipment) exclusively from the franchisor, its affiliates, or designated third-party suppliers. Certain Menu Items, related ingredients, Operating Assets, and point-of-sale systems/software must also be purchased from designated suppliers. |
| Supply Restrictions | The franchisor restricts sources for Proprietary Products to protect trade secrets, ensure quality, maintain reliable supply, achieve favorable purchase terms, control Mark usage, and monitor manufacturing/packaging. For other items, the franchisor may limit suppliers to those meeting its standards and specifications. Franchisees must submit new suppliers or products for evaluation and approval, which may incur a fee. |
| Franchisor Revenue from Suppliers | In 2021, Doughnuttery, Inc. (an affiliate) earned $9,180.19 from selling required products to franchisees and licensees. The franchisor and its affiliates may receive promotional allowances, rebates, volume discounts, and other payments (0-10% of purchases) from suppliers, which may be used for any purpose or deposited into the advertising fund. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Doughnuttery Franchise, LLC and its affiliates do not offer direct or indirect financing, nor do they guarantee any franchisee's notes, leases, or obligations. |
Doughnuttery Franchise Earnings — Item 19
Doughnuttery does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Doughnuttery does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Doughnuttery Litigation & Risk Flags
Clean Litigation RecordDoughnuttery has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Doughnuttery System Growth
Total Units
5
Franchised
1
Company-Owned
4
Doughnuttery currently operates 1 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 4 |
| 2020 | 2 | 0 | 6 |
| 2021 | 1 | 2 | 5 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 15 states: CA, IL, MD, HI, IN, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Doughnuttery Franchise — FAQ
The total investment to open a Doughnuttery franchise ranges from $175,400 to $321,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Doughnuttery charges a royalty fee of 6% of previous month’s Gross Sales of gross sales, plus a 2% of previous month’s Gross Sales each month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Doughnuttery Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Doughnuttery to ensure you have the most up-to-date version.
Doughnuttery does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Doughnuttery has been franchising since 2018. The FDD shows an investment range of $175,400-$321,700, a 6% of previous month’s Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $175,400 to $321,700 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Doughnuttery?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Doughnuttery and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Doughnuttery or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com