Shipley Do-Nuts is a franchise offering a variety of freshly made donuts, kolaches, and coffee, known for its delicious baked goods and friendly service.
KEY FRANCHISE STATS
Franchisees
?
355
+
9%
9%
Franchise fee
?
$40,000
Investment
?
$503,000 - $1,025,000
Revenue (AUV)
?
Undisclosed
$849,000
+
2.3%
2.3%
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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
The initial investment required for a Shipley Do-Nuts franchise is $503,000 - $1,025,000. That is the total cost you would need to finance 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
Travel and Living Expenses While Training
$1,000 - $10,000
Lease Deposits/Payments
$8,400 - $20,000
Equipment, Furnishings, Technology and Computer Systems, including POS System
$133,952 - $230,532
Leasehold Improvements
$218,887 - $510,692
Signage
$15,329 - $64,920
Opening Inventory – Food Items
$20,000 - $30,000
Opening Inventory – Non-Food Items
$1,500 - $3,000
Grand Opening Advertising Campaign
$20,000
Utility and Other Security Deposits
$2,500 - $5,500
Insurance
$1,000 - $2,000
Architectural/Legal
$14,893 - $44,802
Business Licenses/Permits
$1,000 - $3,500
Additional Funds/Working Capital - 3 Months
$25,000 - $40,000
Total
$503,461 - $1,024,946
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Type of Expenditure
Amount
Initial Franchise Fee
$40,000
Travel and Living Expenses While Training
$1,000 - $10,000
Lease Deposits/Payments
$8,400 - $20,000
Equipment, Furnishings, Technology and Computer Systems, including POS System
$133,952 - $230,532
Leasehold Improvements
$218,887 - $510,692
Signage
$15,329 - $64,920
Opening Inventory – Food Items
$20,000 - $30,000
Opening Inventory – Non-Food Items
$1,500 - $3,000
Grand Opening Advertising Campaign
$20,000
Utility and Other Security Deposits
$2,500 - $5,500
Insurance
$1,000 - $2,000
Architectural/Legal
$14,893 - $44,802
Business Licenses/Permits
$1,000 - $3,500
Additional Funds/Working Capital - 3 Months
$25,000 - $40,000
Total
$503,461 - $1,024,946
Franchise Disclosure Document
Below is Shipley Do-Nuts's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Shipley Do-Nuts had 366 total units in 2025, of which 355 were franchised-owned and 11 company-owned.
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:
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.
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.
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.
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.
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