Duck Donuts Franchise Cost & Income 🍩📈

Duck Donuts is an American-based chain store known for selling “warm, delicious, and made to order” donuts and other breakfast pastries. Originally founded in 2007 in North Carolina, Duck Donuts has since expanded to over 100 stores across the United States. Prospective franchisees will be happy to hear that Duck Donuts operates under the franchising model, meaning nearly all of their stores are franchised.
Stepping into the baked goods industry - and more specifically the quick-serve baked breakfast goods industry - can be a daunting task, considering the significant start-up costs and the increasingly competitive nature of the industry. This video will break down the Financial Disclosure Document for Duck Donuts and provide all the information that prospective franchisees should know before making an investment decision.
This video was based on an exclusive Vetted Biz analysis, click here for the full report:
www.vettedbiz.com/duck-donuts...
Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information: www.vettedbiz.com/franchise-s...
00:00 Introduction
00:52 About Duck Donuts
01:05 Franchise Investment Cost
01:24 Franchisee Training
01:43 Royalty Fees
02:06 Duck Donuts Net Growth
02:36 How Much Do Duck Donuts Franchises Make?
03:48 Cash on Cash Return
04:05 Conclusion
#DuckDonutsFranchise #VettedBiz
The quick-service baked goods industry is well-established and highly competitive in America. Duck Donuts expects its franchises to compete with nationally established chain stores, such as Dunkin Donuts and Krispy Kreme, as well as local stores and independent restaurants that offer similar products.
The cost of a Duck Donuts franchise is estimated to be between $376,500 and $562,500, excluding tenant allowances. Franchisees receive an average of $87,500 in tenant improvement allowances, which must be paid back to the landowner within 90 days of opening.
A breakdown of the costs is shown below. Note that an initial, non-refundable franchise fee of $40,000 is due upon signing the Franchise Agreement. Also, it should be noted that a large portion of the fees comes from Leasehold Improvements, which make up around 50% of the overall cost.
For potential franchisees who are considering operating a multi-unit development, the estimated investment cost rises from $396,500 to $582,500. Note that the initial, non-refundable franchise fee increases to $60,000.
The Duck Donuts Franchise must be operated in compliance with the Franchise Agreement. Franchised stores must purchase all equipment, supplies, and services from various suppliers, distributors, and manufacturers that Duck Donuts has identified as partners.
ADDITIONALLY, DUCK DONUTS EXPECTS NEW FRANCHISEES TO PARTICIPATE IN THE DUCK DONUTS INITIAL MANAGEMENT TRAINING PROGRAM BEFORE OPENING THEIR SHOP.
This training program, based in Mechanicsburg, Pennsylvania, provides the skills necessary to properly operate a Duck Donuts shop. A full breakdown of the training program.
The main fees associated with owning a Duck Donuts franchise are as follows:
A 5% royalty fee on all gross sales, due weekly,
A 2% local advertising fee on all gross sales, due monthly, and
A 2-3% brand fund contribution on all gross sales, due weekly.
The food and beverage industry has an average royalty fee of 5.3% and an average marketing fee of 2.3%, meaning Duck Donuts’ ongoing fees are very similar to the industry averages.
Duck Donuts is a young brand seeking to gain market share; as a result, the company places a heavy emphasis on marketing. Franchise owners are required to spend at least $10,000 on local advertising within 30 days of opening the store. Additionally, owners must spend another $20,000 on advertising during the first year of operations. While attention to advertising is not unheard of in the industry, Duck Donuts‘ heavy emphasis on local advertising as a way to expand their brand may pose a financial challenge for some potential franchisees.
Additional minor fees, such as late charges, interest charges, and relocation fees, vary depending on location and circumstances.
This video was based on an exclusive Vetted Biz analysis, click here for the full report:
www.vettedbiz.com/duck-donuts...
Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information: www.vettedbiz.com/franchise-s...

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Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information: www.vettedbiz.com/franchise-search/

[@HDBnB1]

Anyone here own one and can attest to their experience?

[@joemama38]

I can’t elaborate, but it’s probably not a good idea.