About Dunkin' Franchise
Dunkin' is one of America's most recognized coffee and baked goods franchise brands, serving a wide array of coffee, espresso drinks, doughnuts, bagels, muffins, croissants, and breakfast sandwiches.
The brand appeals to a broad demographic seeking quick, convenient, and affordable breakfast and beverage options.
The franchise fee ranges from $40,000 to $90,000, and the company has been franchising since 2006 under Dunkin' Brands Group, Inc.
Dunkin' Franchise Cost & Fees
Minimum Investment
$121K
Average Investment
$955K
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 to $90,000 | One-time payment upon signing |
| Royalty Fee | 5.9% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5.0% of total Gross Sales | National brand fund |
| Total Investment Range | $121,400 – $1,787,700 | Includes build-out, inventory, working capital |
The investment range of $121K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.9% of Gross Sales) and marketing fee (5.0% of total Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (20-year term) | $10,000 | $90,000 |
| Building Costs | $19,500 | $600,000 |
| Site Development Costs | $0 | $350,000 |
| Additional Development Costs | $4,700 | $90,000 |
| Equipment, Fixtures & Signs | $57,000 | $300,000 |
| Restaurant Technology System | $9,700 | $95,000 |
| Licenses, Permits, Fees and Deposits | $500 | $5,500 |
| Opening Inventory | $4,000 | $20,000 |
| Miscellaneous Opening Costs | $9,500 | $70,500 |
| Uniforms | $0 | $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 | $105,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Varies based on timing (within or after 3 years), type of transfer (majority interest, no change of control, to spouse/children), and restaurant type (Dunkin' only or Combo). Ranges from a fixed documentation fee of $2,000 to $27,500 plus additional fees based on gross sales for majority interest transfers after 3 years. |
| Renewal Fee | Varies by market, based on average annual IFF rate. $10,000 for Baskin-Robbins portion of Combo Restaurants. |
| Technology Fee | Various, as detailed in Item 11, including monthly/annual fees for POS, BOH software, network, service desk, and transaction processing. |
| Audit Fee | Our cost to examine your financial, employment, or business records including legal and investigative costs if a 3% or greater discrepancy is discovered, information shows a possible violation, or required records were not sent/kept. |
| Immigration Status Review Costs | Our 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 |
| Indemnification | Varies |
| Lease Fees | Varies, as described in the lease |
| Fixed Documentation Fee - Generally | $2,000 per Restaurant |
| Fixed Documentation Fee - Transfers | $2,000 per Restaurant |
| Costs for tests used to approve additional supplier(s) | $1,000 to $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum of 19 days (classroom/instructional phases), approximately 65 hours (online training), and 155 to 315 hours (on-the-job training). |
| Classroom Training | 46.5 – 52.5 hours |
| On-the-Job Training | 155 to 315 hours |
| Training Location | Dunkin’ Brands University (DBU) in Braintree, Massachusetts, virtually, or in a certified Host Franchisee Restaurant. |
| Additional Training | Franchisees must pay for and attend additional training programs as required by the franchisor during the term of the FA. Additional individuals from the franchisee's organization may attend for a charge per class. For the first restaurant, participation in the opening of another restaurant for up to ten days may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive for individual units; limited protection during Store Development Agreement (SDA) term. |
| Exclusive Territory | No |
| Description | The FA grants the right to operate one Restaurant at a specific location. No exclusive territory is granted, and the franchisor reserves the right to distribute products through any channels, including other franchisees, company-owned outlets, and alternative distribution methods like the Internet, which may compete with the franchisee. For multi-unit development under an SDA, limited territorial protected rights are granted within a specified Store Development Area, but this does not confer exclusive customer rights. The size and development requirements of SDAs are determined by the franchisor based on factors like retail activity, traffic, population density, and potential encroachment. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | one 20-year term |
| Renewal Fee | Varies by market, based on average annual IFF rate. $10,000 for Baskin-Robbins portion of Combo Restaurants. |
| Renewal Conditions | Conditional renewal for an additional 20-year term requires written notice, compliance with all obligations and standards, execution of the then-current Franchise Agreement, franchisor approval of the site and lease terms, payment of a then-current renewal fee, execution of a termination of franchise agreement and general release, and remodeling the Restaurant according to specifications. The franchisor has no obligation to extend any prime lease for the renewal term if it is the lessor. |
| Transfer Fee | Varies based on timing (within or after 3 years), type of transfer (majority interest, no change of control, to spouse/children), and restaurant type (Dunkin' only or Combo). Ranges from a fixed documentation fee of $2,000 to $27,500 plus additional fees based on gross sales for majority interest transfers after 3 years. |
| Transfer Conditions | Transfers require prior written consent from the franchisor, which will not be unreasonably withheld if conditions are met. These conditions include: the sales price not being excessive, the transferee meeting franchisor qualifications, satisfaction of all financial obligations to the franchisor and affiliates, the Restaurant's physical condition meeting standards, no security interest asserted in the franchise, the transferee signing the then-current franchise agreement, and the transferor executing a general release of claims. |
| Termination for Cause | The franchisor can terminate the Franchise Agreement for curable defaults (e.g., health/safety violations within 24 hours, money owed within 7 days, other defaults within 30 days) if not timely cured, or for non-curable defaults (e.g., insolvency, felony conviction, illegal use of premises, termination of another franchise agreement due to default, abandonment, intentional under-reporting of sales/fraud, sublease termination due to default, or repeated defaults after three notices in a 12-month period). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, franchisees may not hold an interest in any other business selling substantially similar products or contest the franchisor's right to develop other Restaurants. These restrictions extend for 2 years after termination or expiration, regardless of cause, but do not apply to another business located more than 5 miles from any other Dunkin' Restaurant. State laws may apply. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees must devote continuous best efforts to the development, management, and operation of their business. While personal on-premises supervision is not required, an on-premises manager must be trained according to franchisor requirements. The franchisor recommends the on-premises manager have an ownership interest, but it is not mandatory. If a business entity is used, owners, officers, directors, shareholders, members, and partners must personally guarantee the entity's performance. |
| Required Suppliers | Franchisees must purchase all food and beverage products, supplies, equipment, materials, and services from franchisor-approved suppliers. The National DCP, LLC (NDCP), a franchisee-owned cooperative, is the exclusive purchasing and distribution entity for the Dunkin’ System, and virtually all franchisees participate in it. |
| Supply Restrictions | The franchisor may limit the number of potential suppliers and designate exclusive suppliers for certain categories of products or services, including purchasing, distribution, fountain and packaged beverage products, and certain restaurant technology. Suppliers must meet franchisor specifications and quality assurance requirements, which are not made available to franchisees. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 25, 2021, revenue from required purchases represented 0.4% ($2,866,120) of the Dunkin’ entities' total U.S. revenues of $745,977,049. This revenue primarily comes from fees earned from franchisee access to online training programs and usage of automated teller machines within Dunkin’ Restaurants. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not directly offer financing but may negotiate lending arrangements through third-party lenders for qualified franchisees. A guaranteed financing program is available with Bank Capital Services, LLC (FNB) for new site development, remodels, and equipment. Real estate acquisition and debt refinancing are generally not allowed under this program, though exceptions may be made. The franchisor receives a fee from FNB for this program. Financing is limited to no more than 90% of the initial investment for new restaurants or purchases of existing restaurants. Interest rates and terms vary and are subject to change. |
Dunkin' Franchise Earnings — Item 19
Dunkin' 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.
Dunkin' 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.
Dunkin' Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dunkin' System Growth
Total Units
12619
Franchised
12619
Company-Owned
0
Dunkin' currently operates 12619 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 375 | 171 | 9630 |
| 2020 | 268 | 818 | 9083 |
| 2021 | 303 | 221 | 9244 |
Transfers: 351 | Closures: 221
State Registrations
Registered in 14 states: CA, NY, HI, ND, IL, RI, IN, SD, MD, VA, MI, WA, MN, WI
Franchisor Financials (Item 21)
Revenue
$1118.6M
Net Income
$553.8M
Total Assets
$1751.4M
Audited by KPMG LLP for year ending December 25, 2021.
Dunkin' Franchise — FAQ
The total investment to open a Dunkin' franchise ranges from $121,400 to $1,787,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000 to $90,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dunkin' charges a royalty fee of 5.9% of Gross Sales of gross sales, plus a 5.0% of total Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dunkin' 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 Dunkin' to ensure you have the most up-to-date version.
Dunkin' 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.
Dunkin' has been franchising since 2006. The FDD shows an investment range of $121,400-$1,787,700, a 5.9% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 to $90,000 and the total investment ranges from $121,400 to $1,787,700 depending on location size and market. A minimum of $40,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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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 Dunkin' and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dunkin' or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com