About Dunkin' - HMSHost Franchise
Dunkin' is one of the world's leading quick-service restaurant (QSR) brands specializing in hot and iced coffee, espresso-based beverages, donuts, bagels, muffins, breakfast sandwiches, and other baked goods and snacks.
Franchisees operate Dunkin' restaurants that serve a broad customer base ranging from morning commuters seeking coffee and breakfast to afternoon snack seekers.
Day-to-day operations involve food preparation, beverage service, inventory management, staff supervision, and maintaining brand standards for quality, cleanliness, and customer service.
Dunkin' - HMSHost Franchise Cost & Fees
Minimum Investment
$121K
Average Investment
$965K
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 - $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 Gross Sales | National brand fund |
| Total Investment Range | $121,400 – $1,809,500 | 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 Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Freestanding, 20-year term) | $40,000 | $90,000 |
| Building Costs (Freestanding) | $180,000 | $600,000 |
| Site Development Costs (Freestanding) | $13,000 | $350,000 |
| Additional Development Costs (Freestanding) | $12,000 | $90,000 |
| Equipment, Fixtures & Signs (Freestanding) | $189,000 | $300,000 |
| Restaurant Technology System (Freestanding) | $65,000 | $95,000 |
| Licenses, Permits, Fees and Deposits (Freestanding) | $3,500 | $7,500 |
| Real Estate Costs | $0 | $0 |
| Opening Inventory | $8,000 | $20,000 |
| Miscellaneous Opening Costs | $9,500 | $70,000 |
| Uniforms | $400 | $3,000 |
| Insurance | $4,500 | $16,000 |
| Travel and Living Expenses While Training | $2,000 | $50,000 |
| Marketing Start-Up Fee | $0 | $10,000 |
| Additional Funds for First 3 Months of Operation | $0 | $108,000 |
| Initial Franchise Fee (SDO, 10-year term) | $10,000 | $22,500 |
| Building Costs (SDO) | $19,500 | $392,000 |
| Site Development Costs (SDO) | $0 | $0 |
| Additional Development Costs (SDO) | $4,700 | $25,000 |
| Equipment, Fixtures & Signs (SDO) | $57,000 | $242,000 |
| Restaurant Technology System (SDO) | $9,700 | $43,000 |
| Licenses, Permits, Fees and Deposits (SDO) | $500 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 - $27,500 depending on Gross Sales and restaurant type |
| Renewal Fee | Varies by market based on average annual IFF rate |
| Technology Fee | $65,000 - $95,000 initial; ongoing maintenance varies |
| Audit Fee | Our cost to examine your financial, employment, or business records including legal and investigative costs |
| Loyalty Program Contribution Payment | Currently 1.6% of Loyalty Program Sales |
| Immigration Status Review Costs | Our out-of-pocket costs |
| Interest, Late Fees, and Collection Costs | 1.5% per month on unpaid amounts |
| Indemnification | Varies |
| SDA Transfer Fee | $10,000 |
| Lease Fees | Varies |
| Fixed Documentation Fee | $2,000 per Restaurant |
| Costs for tests to approve additional suppliers | $1,000 to $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum 20 days (not necessarily consecutive) |
| Classroom Training | 62.5 - 80.5 hours online training |
| On-the-Job Training | 218 - 431 hours |
| Training Location | Online, Certified Training Restaurants, and Host Central Manufacturing Location (CML) |
| Additional Training | Up to 10 days participation in opening of another Restaurant before opening first Restaurant; ongoing training programs as required |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Single location only |
| Description | Under the FA, you will be granted the right to operate one Restaurant at a specific location specified in the FA or its exhibits, and only at that location. You will not be granted any additional rights, any minimum territory, or other protected rights. Under an SDA, you will be granted limited territorial protected rights during the term of the SDA for development of new Restaurants within the Store Development Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 20 years |
| Renewal Fee | Varies by market based on average annual IFF rate |
| Renewal Conditions | Give written notice of election to renew; be in compliance with standards and other obligations; execute then-current Franchise Agreement; have site and terms of lease approved; pay then-current renewal fee; execute a termination of franchise agreement and general release; remodel Restaurant according to specifications |
| Transfer Fee | $5,000 - $27,500 depending on Gross Sales (plus $12,500 for Dunkin' or $20,000 for Combo if within first 3 years) |
| Transfer Conditions | Sales price may not be excessive; transferee must meet qualifications; satisfy all accrued obligations; Restaurant must be brought into compliance with standards; transferee must sign franchise agreement; execute general release of all claims |
| Termination for Cause | We can terminate if you commit a default that cannot be cured or fail to timely cure a default that may be cured. Cure periods: hazardous situations on demand; health/sanitation/safety within 24 hours; failure to keep open within 24 hours; insurance/payment within 7 days; all other defaults within 30 days. |
| Non-Compete Period | 2 years |
| Non-Compete Details | The restrictions remain effective for 2 years after the Franchise Agreement expires or is terminated, regardless of the cause, except that they do not apply to another business located more than 5 miles from any of our other Restaurants. During the term, you may not have any interest in any other business which sells substantially similar products. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Personal on-premises supervision is not required, however, if you use a separate on-premises manager, that manager must be trained in accordance with training requirements. We recommend your on-premises manager have an ownership interest in your corporation, LLC, or partnership but it is not a requirement. You must devote continuous best efforts to the development, management, and operation of your business. You must manage your network with at least two individuals who have completed the required training program. |
| Required Suppliers | All food and beverage products, supplies, equipment and materials must meet Dunkin' specifications and be purchased from approved suppliers. The National DCP (a franchisee-owned cooperative) is the exclusive purchasing and distribution entity for the system. Approved Bakery Manufacturers supply donut and bakery products in selected markets. |
| Supply Restrictions | Over 95% of total purchases must come from approved suppliers meeting Dunkin' specifications. Franchisees may request approval for alternative suppliers at a testing cost of $1,000 to $10,000. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 31, 2022, Dunkin' entities had total U.S. revenues of $810,840,991. Rental revenue from franchisees was 15.9% ($128,695,183) and revenue from required purchases was 0.4% ($2,949,861). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Dunkin' - HMSHost Franchise Earnings — Item 19
Average Revenue
$1.5M
Median Revenue
$1.4M
Revenue Range
$320K – $3.9M
Sample Size
7038 units
Past financial performance does not guarantee future results. Individual results will vary.
Dunkin' - HMSHost Litigation & Risk Flags
4 Pending Actions 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' - HMSHost System Growth
Total Units
9370
Franchised
9339
Company-Owned
31
Dunkin' - HMSHost currently operates 9339 franchised locations and 31 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 268 | 706 | 9072 |
| 2021 | 303 | 216 | 9244 |
| 2022 | 314 | 158 | 9339 |
Transfers: 392 | Closures: 137
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Dunkin' - HMSHost Franchise — FAQ
The total investment to open a Dunkin' - HMSHost franchise ranges from $121,400 to $1,809,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000 - $90,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dunkin' - HMSHost charges a royalty fee of 5.9% of Gross Sales of gross sales, plus a 5.0% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dunkin' - HMSHost 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' - HMSHost to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Dunkin' - HMSHost franchise owners report average revenue of $1.5M and median revenue of $1.4M. This is based on a sample of 7038 units. Past performance does not guarantee future results.
Dunkin' - HMSHost has been franchising since 1955. The FDD shows an investment range of $121,400-$1,809,500, a 5.9% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 4 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 - $90,000 and the total investment ranges from $121,400 to $1,809,500 depending on location size and market. 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' - HMSHost 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' - HMSHost or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com