About Peace, Love and Little Donuts. Franchise
Peace, Love and Little Donuts is a specialty donut and coffee franchise where franchisees operate retail stores and outlets featuring distinctive donuts with unique toppings and combinations, along with coffee and related items.
Day-to-day operations involve baking fresh donuts throughout the day, serving customers, and managing the retail store environment.
Franchisees may also offer catering services for banquets, conventions, weddings, and similar functions within their territory.
Peace, Love and Little Donuts. Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | The greater of 6% of Gross Revenues or $100 per week (subject to annual CPI adjustments) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | The greater of 1% of Gross Revenues or $25 per week (subject to annual CPI adjustments), plus 2% of Gross Revenues for local advertising | National brand fund |
| Total Investment Range | $121,200 – $235,100 | Includes build-out, inventory, working capital |
The investment range of $121K–$235K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 6% of Gross Revenues or $100 per week (subject to annual CPI adjustments)) and marketing fee (The greater of 1% of Gross Revenues or $25 per week (subject to annual CPI adjustments), plus 2% of Gross Revenues for local advertising) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $40,000 | $40,000 |
| Travel & Living Expenses While Attending Initial Training | $500 | $2,000 |
| Real Estate and Leasehold Improvements | $25,000 | $60,000 |
| Equipment | $35,000 | $55,000 |
| POS, Cameras & Software | $1,500 | $2,500 |
| Signs | $2,500 | $15,000 |
| Licenses and Permits | $200 | $600 |
| Grand Opening | $3,000 | $8,500 |
| Insurance | $500 | $1,500 |
| Professional Services | $1,000 | $5,000 |
| Opening Inventory of Supplies | $4,000 | $10,000 |
| Additional Funds (3 months) | $5,000 | $25,000 |
| Miscellaneous Opening Costs | $3,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 ($500 if transfer to entity with identical ownership) |
| Renewal Fee | 2/3 of the then-current Initial Fee |
| Audit Fee | All costs of audit if underreporting of Gross Sales by 3% or more |
| Additional Training | Approximately $1,200 per person |
| Late Fees | 1.5% per month interest on underpayment or late payment |
| Local Advertising | Minimum 2% of Gross Revenues (may increase to 4%) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 40 to 80 hours |
| Classroom Training | 59 hours |
| On-the-Job Training | 21 hours |
| Training Location | Location(s) specified by franchisor, which may include existing Peace, Love and Little Donuts stores |
| Additional Training | Franchisor may require additional ongoing training at locations it determines. Additional training costs approximately $1,200 per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with exclusions |
| Exclusive Territory | No |
| Territory Size | Determined based on demographics, competition, traffic patterns, and other factors |
| Description | Franchisor will not locate a competitive business under the Marks within the Territory during the term of the Agreement, but excludes home shows, trade fairs, fairs, and festivals. Franchisor may sell through alternative distribution channels including internet, catalogs, and electronic media within the Territory. Territory may be modified if population increases by 20% or more. Franchisee may acquire expansion territory at $0.10 per person. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional terms of 10 years each |
| Renewal Fee | Not more than 2/3 of the then-current Initial Fee |
| Renewal Conditions | Must be in good standing, current on all fees, no more than two late payments in last 3 years, sign new agreement (which may be materially different), remodel/refurbish store, maintain premises, give 9-18 months notice, execute general release, no unethical business dealings |
| Transfer Fee | $7,500 ($500 for transfer to entity with identical ownership) |
| Transfer Conditions | Must be current on all fees, not in material breach, all debts paid, assignee signs then-current agreement, assignee qualifies and completes training, franchisor has 30-day right of first refusal, assignee pays transfer fee |
| Termination for Cause | Franchisor may terminate only for cause. Curable defaults have 30 days to cure. Non-curable defaults include repeated defaults, bankruptcy, abandonment, and criminal conviction. Franchisor may alternatively terminate territorial rights while leaving franchise in effect. |
| Non-Compete Period | 18 months |
| Non-Compete Details | For 18 months after termination or expiration, franchisee must not compete within 20 miles of the boundaries of the Territory or any other Peace, Love and Little Donuts store. Must not solicit or divert customers or vendors, disclose trade secrets, or solicit/hire franchisor employees or franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must either devote full time and effort to managing and operating the business or delegate management to a responsible person who has passed all necessary requirements. Franchisee must reserve and exercise ultimate authority and responsibility. Designated manager must successfully complete initial training program. Manager is not required to be an equity owner. |
| Required Suppliers | Franchisees must purchase from the franchisor or approved suppliers all equipment, supplies, and inventory. Items bearing the Marks must be purchased from franchisor or approved suppliers. Approximately 90-100% of purchases must come from approved sources. |
| Supply Restrictions | All items must meet franchisor's specifications for quality, accuracy, preparation, design and appearance. Franchisor publishes approved vendor list in the Manual. New vendors may be approved if they meet specifications. |
| Franchisor Revenue from Suppliers | Franchisor and affiliates reserve the right to receive fees, payments, rebates, commissions or other consideration from third-party suppliers. Total revenue for fiscal year ended December 31, 2021 was $383,852. No revenue was received from franchisee purchases in that year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and will not guarantee any note, lease, or other financial obligation. |
Peace, Love and Little Donuts. Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Peace, Love and Little Donuts. Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Peace, Love and Little Donuts. System Growth
Peace, Love and Little Donuts. currently operates 24 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 4 | 2 | 27 |
| 2020 | 3 | 3 | 27 |
| 2021 | 1 | 4 | 24 |
Transfers: 1 | Closures: 4
State Registrations
Registered in 3 states: IN, MI, NY
Franchisor Financials (Item 21)
Audited by Miller CPA, PLLC for year ending December 31.
Peace, Love and Little Donuts. Franchise — FAQ
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