Shipley Do-Nuts Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

337
+
2%
2%
Investment required

?

$496,000 - $1,029,000
Revenue (AUV)

?

$830,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$40,000
Royalty fees

?

5.00%
+
4.00%
Operating Profit

?

18.7%

Pro
Franchisees

?

337
+
2%
2%
Investment required

?

$496,000 - $1,029,000
Franchise fee

?

$40,000
Royalty fees

?

5.00%
+
4.00%
Revenue (AUV)

?

$830,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

18.7%

Pro

Shipley Do-Nuts: Crafting Fresh Traditions in Gourmet Pastries

Shipley Do-Nuts, established in 1936 by Lawrence Shipley in Houston, Texas, started as a home-based venture where its first donuts were crafted using a distinctive recipe. These hand-made donuts quickly gained popularity, laying the foundation for the brand’s legacy.

Still headquartered in Houston, Shipley Do-Nuts is widely recognized for its freshly prepared donuts and kolaches, baked daily to maintain quality and flavor. The introduction of franchising in 1987 spurred its growth to over 340 locations across the United States.

The franchise distinguishes itself through its dedication to freshness and its diverse range of classic and specialty donuts. The signature kolaches, inspired by the brand's Texas roots, add a unique local touch.

Shipley Do-Nuts continues its expansion, inviting franchise partners across the country. The company emphasizes consistency and quality, providing franchisees with comprehensive training and ongoing support to uphold its established standards.

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 (Low – High)
Initial Franchise Fee $40,000 – $40,000
Travel and Living Expenses While Training $1,000 – $10,000
Lease Deposits/Payments $8,400 – $20,000
Equipment, Furnishings, Technology, POS $130,000 – $200,000
Leasehold Improvements $213,000 – $500,000
Signage $20,000 – $125,000
Opening Inventory – Food Items $20,000 – $30,000
Opening Inventory – Non-Food Items $1,500 – $3,000
Grand Opening Advertising Campaign $20,000 – $20,000
Utility and Other Security Deposits $2,500 – $5,500
Insurance $1,000 – $2,000
Architectural/Legal $13,000 – $30,000
Business Licenses/Permits $1,000 – $3,500
Additional Funds/Working Capital (3 months) $25,000 – $40,000
TOTAL $496,400 – $1,029,000

Franchise Disclosure Document

Upgrade to Pro to download this FDD

Access the most comprehensive franchise database

Upgrade to Pro
Thank you for signing up
Complete your upgrade now
Signup successful!
Complete your upgrade

Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

337

+
2%
2%
No growth
New

$40,000

$496,000

-

$1,029,000

n.a.

$830,000

Pro

72.3%

Pro

18.7%

Pro

Food & Beverage

Training

The training provided by the Shipley Do-Nuts franchisor includes a structured program aimed at preparing franchisees for successful operation. This training is divided into the following components:

  1. Initial Training Program: The Operating Principal of the franchise must complete the Initial Training Program at least three months prior to the shop's opening. This training ensures that the franchisee is well-versed in the operation's standards and procedures. The franchisor may also require one or more managers to participate in this program.
  2. On-Site Opening Training: For the franchisee's first shop, the franchisor provides on-site training representatives for 5 to 15 days during the shop's initial setup phase.
  3. Ongoing Training: The franchisor may develop and require attendance at additional training programs over time. The duration, curriculum, and location of these sessions are determined by the franchisor, and the franchisee must bear the associated costs.
  4. Franchise Meetings and Conferences: These may include training sessions and the introduction of new products or system changes. Attendance at these events may be mandatory, and the franchisee is responsible for travel, lodging, and other expenses.

Territory Protection

Shipley Do-Nuts does not guarantee exclusive territory protection to its franchisees. The franchise agreement explicitly states that franchisees may face competition from other franchisees, company-owned outlets, or alternative distribution channels operated or authorized by the franchisor.

This means that even within a designated geographical area, the franchisor retains the right to establish competing outlets or sell through other channels. Furthermore, Shipley Do-Nuts franchisees do not receive marketing exclusivity within their territories.

While the agreement provides the right to operate at a specified shop location, it does not include provisions for compensating franchisees if the franchisor or its affiliates introduce competitive businesses in the area. This arrangement allows the franchisor significant flexibility in its operations, even within the franchisee's region.

Number of units

2024
Franchised units

329

326

337

Company-owned units

11

11

12

Total units

340

337

349

Competitors

Aunt Millies Bakeries

Investment required
$37,000
-
$186,000
Franchisees
154
+
-7%
-7%

Philly Pretzel Factory

Investment required
$135,000
-
$407,000
Franchisees
146
+
-3%
-3%

Tous les Jours

Investment required
$718,000
-
$939,000
Franchisees
83
+
34%
34%

Randy's Donuts

Investment required
$277,000
-
$1,192,000
Franchisees
5
+
400%
400%

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Get unlimited access to:
2,145 franchises data
Number of locations
Franchise fees
Total investment

?

Download unlimited FDDs
Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit metrics

?

Upgrade to Pro

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Upgrade to Pro
$180 / year
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

Upgrade to Pro
Signup successful!
Complete your upgrade

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

Darren M.

Franchisee

Been waiting for years for this. All the most important franchises and their latest Franchise Documents to download. The team also updates the franchises very quickly.

Emily V.

Franchisee