Parlor Doughnuts

Parlor Doughnuts Franchise FDD, Costs & Fees (2025)

Parlor Doughnuts serves handcrafted gourmet doughnuts in a variety of creative flavors, along with coffee and espresso drinks, providing a sweet and indulgent treat for doughnut lovers.

Parlor Doughnuts is a distinctive franchise specializing in gourmet doughnuts that deliver a unique twist on a classic treat. Founded in 2019 in the vibrant city of Evansville, Indiana, this innovative doughnut chain is headquartered there and has quickly gained recognition for its creative and high-quality offerings.

Parlor Doughnuts began franchising in 2020, marking its expansion from a popular local favorite to a nationwide presence.

The franchise sets itself apart from the competition by emphasizing an artisanal approach to doughnut-making, using premium ingredients and unique recipes that cater to diverse tastes. Their menu features a variety of flavors, from classic favorites to seasonal and specialty options, all crafted with a focus on both taste and presentation. 

Parlor Doughnuts’ commitment to exceptional quality and customer experience helps it stand out in a crowded market, appealing to doughnut enthusiasts and casual consumers alike.

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 for initial franchised business; 75% for second and third; 50% for fourth and additional
Opening Inventory – boxes, cups, food, coffee, supplies, etc. $25,000 - $35,000
Opening Inventory – merchandise for sale (mugs, shirts, stickers, glasses, hats, etc.) $7,000 - $14,000
Lease and Utilities $7,000 - $15,000 per month
Security Deposit $7,000 - $15,000
Design Professional Fees $10,000 - $30,000
General Contractor Fees $25,000 - $50,000
Build-out of Approved Location (Second Generation) $125,000 - $250,000
Signage $10,000 - $25,000
Furniture, Fixtures, and Décor $25,000 - $55,000
Equipment $120,000 - $190,000
Initial Training (including Your Travel Expenses) $2,000 - $9,000
Pre–Opening and Grand Opening Advertising and Marketing $5,000 - $10,000
Legal and Accounting Fees Related to Startup Assistance $2,000 - $5,000
Computer System and Required Hardware and Operating System plus Recommended Security Systems $4,000 - $10,000
Drive Thru Window and Digital Menu (Optional) $20,000 - $30,000
Insurance (quarterly estimate) $3,000 - $5,000
Additional Funds for Initial Three Months $20,000 - $50,000
Total Initial Investment $437,000 - $808,000 (with optional drive thru: $457,000 - $838,000)

Franchise Disclosure Document

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Competitors

Below are some of

Parlor Doughnuts

key competitors in the

Baked Goods

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Parlor Doughnuts
2021
54
+
500%
500%
$40,000
5.00%

$437,000

-

$838,000

n.a.

$838,000

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n.a.

n.a.

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n.a.

n.a.

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2006
154
+
-7%
-7%
$30,000
n.a.

$37,000

-

$186,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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1998
24
+
-14%
-14%
$25,000
6.00%

$122,000

-

$339,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2004
146
+
-3%
-3%
$35,000
6.00%

$135,000

-

$407,000

Upgrade

n.a.

$471,000

74.0%

n.a.

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n.a.

n.a.

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No
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No
Yes
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Yes
2023
0
+
n.a.
n.a.
$55,000
6.00%

$235,000

-

$712,000

Upgrade

n.a.

$579,000

76.0%

n.a.

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n.a.

n.a.

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No
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No
No
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No
2021
1
+
n.a.
n.a.
$40,000
6.00%

$660,000

-

$1,021,000

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n.a.

$3,145,000

63.3%

n.a.

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n.a.

n.a.

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No
Upgrade
No
No
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No
2006
32
+
-18%
-18%
$40,000
5.00%

$1,090,000

-

$2,335,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
Upgrade
No
No
Upgrade
No

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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?

Priority support

?

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Training 

Parlor Doughnuts offers a comprehensive training program for its franchisees to ensure consistency and high quality across all locations. The training typically includes:

  1. Operational Training: Franchisees receive detailed instruction on daily operations, including doughnut preparation, inventory management, equipment use, and maintaining hygiene standards. This ensures that every location adheres to the franchise’s high standards of quality and service.
  2. Customer Service Training: Emphasis is placed on providing exceptional customer service, including training staff on effective communication, handling customer inquiries, and creating a welcoming atmosphere in the store.
  3. Marketing and Sales Training: Franchisees learn about the brand’s marketing strategies, promotional campaigns, and sales techniques to effectively attract and retain customers. This training includes guidance on local store marketing, social media engagement, and community involvement.
  4. Business Management Training: Training covers essential aspects of business management, such as financial tracking, budgeting, and staff management. This helps franchisees run their operations efficiently and effectively.

Territory Protection

Parlor Doughnuts provides territory protection to its franchisees, ensuring that each location operates in a defined and exclusive geographic area. This protection prevents new franchises from opening within the protected territory, allowing franchisees to maximize their market potential without direct competition from other Parlor Doughnuts stores.

The franchise’s territory protection policy is designed to support franchisees in building a strong customer base and achieving sustainable growth. By limiting the number of stores in a given area, Parlor Doughnuts helps franchisees maintain a competitive edge and enhance their profitability.

Number of units

2025
Franchised units

9

29

54

Company-owned units

11

9

9

Total units

20

38

63

Competitors

Aunt Millies Bakeries

Franchisees

?

154
+
-7%
-7%
Investment

?

$37,000 - $186,000

The Pretzel Twister

Franchisees

?

24
+
-14%
-14%
Investment

?

$122,000 - $339,000

Philly Pretzel Factory

Franchisees

?

146
+
-3%
-3%
Investment

?

$135,000 - $407,000

Bang Cookies

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$235,000 - $712,000

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