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

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.

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
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
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

Shipley Do-Nuts

2025

Franchise Disclosure Document

Number of units

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.

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.

Competitors

Below are some of

Shipley Do-Nuts

key competitors in the

Baked Goods

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Sign up
Gross Profit
Sign up
EBITDA
Sign up

355

New
+
9%
9%

$40,000

$503,000

$1,025,000

n.a.

$849,000

$xxx,xxx

73.0%

xx%

n.a.

11.5%

xx%

n.a.

Competitors

Al Manakeesh

Al Manakeesh is a Middle Eastern bakery-restaurant brand offering manakeesh flatbreads, shawarma, and Lebanese specialties, serving neighborhood diners and families, and known for freshly baked dough, traditional flavors, and casual, counter-service settings that highlight Levantine comfort food.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$261,000 - $403,000

Golden Krust Caribbean Restaurant

Golden Krust Caribbean Restaurant is a quick‐service franchise offering Caribbean-style patties, rotis, rice dishes and meals, serving diaspora communities and casual diners, and known for signature flavors, cultural brand heritage and growing franchise network.

Franchisees

?

101
+
-6%
-6%
Investment

?

$213,000 - $776,000

MidnighTreats

MidnighTreats is a late-night food-truck or small-format franchise offering waffles, desserts and sweet-snacks on-demand, serving late-night crowds, event patrons, and dessert lovers, and known for mobile flexibility, viral menu appeal and lean startup model.

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$133,000 - $296,000

Schmackary's

Schmackary’s is a gourmet cookie-and‐dessert franchise offering handmade cookies, ice cream sandwiches, and specialty treats, serving dessert lovers and gift buyers, and known for bold flavors, urban brand presence and experiential retail-tainment.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$267,000 - $657,000

BAGEL BOSS

BAGEL BOSS is a bagel-and-deli franchise offering New York–style bagels, breakfast sandwiches, deli items and coffee, serving morning commuters and families, and known for authentic bagel craft, strong local presence and franchise scalability.

Franchisees

?

18
+
64%
64%
Investment

?

$510,000 - $1,175,000

House of Bread

House of Bread is a bakery-café franchise offering freshly baked artisan breads, pastries, sandwiches and café meals, serving families and casual diners, and known for hand-crafted baking, community-driven brand and multi-stream revenue.

Franchisees

?

5
+
25%
25%
Investment

?

$198,000 - $584,000

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