Dunkin' Donuts Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$65,000
Investment required
$121,000 -$1,810,000
Royalty fee
5.90%

Dunkin' Donuts: Brewing Success in Coffee and Baked Goods

Dunkin' Donuts, established in 1950 by Bill Rosenberg in Quincy, Massachusetts, has evolved into a global leader in the coffee and baked goods sector. Headquartered in Canton, Massachusetts, the brand began franchising in 1955, rapidly expanding its footprint both domestically and internationally.

Today, Dunkin' Donuts boasts over 13,100 restaurants across more than 40 countries, offering a diverse menu that includes high-quality coffee, donuts, bagels, and other baked goods.

What sets Dunkin' Donuts apart from its competitors is its unwavering commitment to quality, convenience, and innovation. The brand has consistently been recognized for customer loyalty, securing the top spot in the coffee category for 17 consecutive years, according to Brand Keys.

This dedication to excellence, coupled with a strong franchisee support system, positions Dunkin' Donuts as a premier choice for entrepreneurs seeking a proven and reputable franchise opportunity.

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.

Dunkin’ Donuts offers 5 types of franchises:

Business Type Initial Investment Range
Special Distribution Opportunities (SDO) $121,400 to $904,600
Gas & Convenience Restaurants $210,900 to $1,038,100
Shopping Center/Storefront $437,500 to $1,310,500
Freestanding $526,900 to $1,809,500

We are summarizing below the main costs associated with opening a Dunkin’ Donuts Freestanding franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee (20-year term) $40,000 to $90,000
Building Costs $180,000 to $600,000
Site Development Costs $13,000 to $350,000
Additional Development Costs $12,000 to $90,000
Equipment, Fixtures & Signs $189,000 to $300,000
Restaurant Technology System $65,000 to $95,000
Licenses, Permits, Fees, and Deposits $3,500 to $7,500
Real Estate Costs Lump Sum or Monthly
Opening Inventory $8,000 to $20,000
Miscellaneous Opening Costs $9,500 to $70,000
Uniforms $400 to $3,000
Insurance $4,500 to $16,000
Travel and Living Expenses While Training $2,000 to $50,000
Marketing Start-Up Fee $0 to $10,000
Additional Funds for First 3 Months of Operation $0 to $108,000
TOTALS $526,900 to $1,809,500

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Number of units

2023
Franchised units

7,790

8,010

8,087

Company-owned units

0

0

31

Total units

7,790

8,010

8,118

Franchise Disclosure Document

Training

Dunkin’ Donuts provides comprehensive training programs to franchisees to ensure operational success and alignment with brand standards:

  1. Initial Training Programs:
    • Dunkin’ Donuts mandates initial training for franchisees, their management, and personnel to ensure familiarity with brand standards.
    • Training sessions may be held at designated Dunkin’ Donuts restaurants, training facilities, or through virtual and electronic platforms.
  2. Ongoing and Specialized Training:
    • Dunkin’ Donuts offers additional training sessions to franchisees to support new initiatives and maintain compliance with operational requirements.
    • These training programs can take place in certified training locations or other approved facilities.
  3. Online and Virtual Training:
    • Dunkin’ Donuts provides an online training program, “The Center,” which is mandatory for franchisees and their teams. It requires specific technological setups, including high-speed internet and laptops.
    • Participation in this training involves an annual access fee.
  4. Certification Training:
    • Franchisees managing combo restaurants or multiple units must complete Dunkin’ Donuts' specialized certification programs.
    • Additional charges apply for individuals requiring advanced training in multi-unit operations.
  5. Operations and Confidential Information Training:
    • Dunkin’ Donuts provides proprietary training in methods, systems, and operations to enhance competitive advantage.
    • This includes access to operational manuals and other confidential materials.
  6. Training-Related Expenses:
    • While Dunkin’ Donuts covers the presentation cost of initial training, franchisees are responsible for associated expenses such as uniforms, travel, accommodations, and salaries for attendees.

Territory Protection

Dunkin’ Donuts does not offer territory protection to its franchisees. Each franchise agreement specifies the right to operate a single restaurant at a designated location.

Franchisees are not granted exclusive territories or additional rights to develop or operate other restaurants beyond the specified location. The agreement also explicitly states that the franchisor, other franchisees, or even competitive brands controlled by the franchisor may operate within the same area.

Furthermore, the lack of exclusive territory means franchisees might face direct competition from other Dunkin’ Donuts locations, company-owned outlets, or alternative distribution channels managed by the franchisor. This non-exclusive arrangement emphasizes the importance of operational excellence and adaptability for franchisees to thrive in potentially competitive environments.

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