Franchise Fees and Investments
In order to open a Dunkin’ Donuts franchise, you will need to pay a franchise fee between $40,000 to $90,000. This is on the higher side for quick-service restaurants (McDonalds for example has a $65,000 franchise fee). In addition to the initial franchise fee, you must pay to the franchisor a 5.9% royalty fee (as a % of revenue), as well as a 5.0% marketing fee.
The Dunkin Donuts franchise cost is between $437,500 – $1,787,700. This includes the cost of leasing a retail location, a marketing start-up fee, other franchise fees, as well as the cost of equipment and supplies. Potential franchisees should be aware that starting a Dunkin Donuts franchise is not a cheap proposition.
The financial barrier to entry turns many potential franchise buyers away. As a Dunkin’ Franchisee, you’ll need to have a minimum of $250,000 in liquid assets and a net worth of $500,000 per restaurant. The total initial investment ranges anywhere from $97,500 to $1,717,103.
Dunkin’ Franchise Costs are as follows:
- Total Initial Investment: $97.5K to $1.7M
- Franchise Fee: $40K to $90K
Earnings Potential and Brand Value
The potential earnings from owning a Dunkin’ Donuts franchise vary depending on the franchise’s location and performance, but most franchisees have reported gross sales ranging from $500,000 to $4 million annually. Franchisees typically receive approximately 33% of gross sales as their net income.
Franchisees also benefit from the support of the Dunkin’ Donuts brand. The average Dunkin’ franchise is getting around $620,000 to $1.3 million in sales per year. This results in the average Dunkin’ franchise owner to have an annual salary of around $124,000.
Franchise Models and Investment Overview
Dunkin’ offers different franchise models including traditional, drive-through, and non-traditional. The total investment to open a Dunkin’ Donuts franchise ranges from $97,500 to $1,717,103. This includes the franchise fee, real estate costs, equipment, and more.
Owning a Dunkin’ franchise has advantages including an established brand, loyal customers, supply chain, and marketing support. However, significant upfront and ongoing fees are required. The initial franchise agreement is 20 years, and it can take 1-3 years for a new Dunkin’ franchise to become profitable.
Qualifications and Financial Assistance
As a Dunkin’ franchisee, you’ll need $250,000 minimum liquid assets and $500,000 net worth per store. Dunkin’ Donuts does not provide any financial assistance for opening a Franchise but will help the prospective franchise owner to find financing through financial institutions, lenders, and banks.
Dunkin’ has earned a 4th place in the top ranking quick service restaurant (QSR) chains in the United States in terms of number of units. Franchisees are expected to meet all financial obligations and comply with operational standards during the 20-year period to have the opportunity to renew for subsequent terms.