Duck Donuts Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$424,000 - $606,000
Royalty fee
5% - 6%

Duck Donuts: Revolutionizing the Custom Donut Experience

In 2006, Russ DiGilio established Duck Donuts in the charming town of Duck, North Carolina, introducing a fresh and customizable donut experience that quickly captivated food enthusiasts. The inspiration for Duck Donuts arose during a family vacation when the need for warm, freshly made donuts led to the creation of the first store.

The concept rapidly gained traction, and by 2011, Duck Donuts had expanded to four locations. Recognizing the brand's growth potential, franchising began in 2013, with the first franchise opening in Williamsburg, Virginia. Today, the corporate headquarters of Duck Donuts is located in Mechanicsburg, Pennsylvania, where the brand continues to thrive.

Duck Donuts offers a unique in-store experience where customers can watch their donuts being made fresh to order. They then have the opportunity to customize their treats with a variety of coatings, toppings, and drizzles. This commitment to freshness and personalization distinguishes Duck Donuts from its competitors and appeals to a wide range of tastes.

The company seeks passionate entrepreneurs who are eager to be hands-on in their operations and align with the brand’s values. Duck Donuts emphasizes the importance of community involvement and fostering a friendly, family-oriented environment. Prospective franchisees who share a commitment to quality and community engagement are invited to become part of the Duck Donuts family.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Your Training Expenses $0-$2,500
Premises Deposits $2,500 - $4,500
Professional Design $6,000 - $15,000
Leasehold Improvements $240,000 - $350,000
Signage $7,800 - $13,500
Furniture, Fixtures, Equipment $110,000 - $137,000
Computer Systems $15,000 - $17,000
Initial Inventory $7,000 - $10,000
Grand Opening Marketing $12,500 - $15,000
Professional Fees $750 - $5,000
Licenses and Permits $100 - $2,000
Insurance $3,000 - $5,000
Operating Expenses / Additional Funds – 3 months $20,000 - $30,000
TOTAL (excluding tenant allowance) $464,650 - $646,500
TOTAL PROJECT COST $424,485 - $606,335

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Number of units

2023
Franchised units

94

103

110

Company-owned units

2

1

1

Total units

96

104

111

Franchise Disclosure Document

Training 

Duck Donuts provides an extensive training program that incorporates a mix of online, classroom, and hands-on training.

Attendance Requirements

A minimum of four individuals must attend and successfully complete the initial training. This group includes the franchisee’s Operating Principal, a full-time General Manager, and one additional approved employee.

Training Curriculum

The program covers various crucial aspects of store operations. Topics include sales techniques, product knowledge, accounting practices, food preparation, and operations management.

Location and Duration

Training takes place at designated Duck Donuts locations, which may include their headquarters.

Continuing Education

Duck Donuts may require principal trainees to participate in refresher courses, seminars, and additional training sessions, including up to five days of annual refresher programs during the agreement term.

Training Costs

Duck Donuts covers direct training expenses, such as instructors and materials, for up to four individuals. However, franchisees are responsible for all indirect training costs.

Territory Protection

Franchisees are granted the right to establish and operate a Duck Donuts outlet within a designated protected territory, known as the "Territory," which is defined once the franchised business location is identified and approved.

Territory Definition

The Territory usually encompasses one or more cities or market areas, outlined by factors such as roadways, county lines, or other geographical markers. The size and boundaries of the Territory are individually determined based on elements like the number of households, average home prices, and household incomes.

Franchisor Rights and Limitations

Although franchisees receive a specific location within their Territory, the franchisor reserves the right to operate or franchise Duck Donuts outlets in surrounding, bordering, or adjacent areas. However, the franchisor commits not to permit any other franchisees to operate a Duck Donuts outlet using the same Marks within the Territory, provided the franchisee is not in default under the agreement.

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