Want to go into the Dunkin’ Donuts business but don’t know where to start? If you’re considering opening your own Dunkin’, you should know that quite a bit goes into calculating a Dunkin’ Donuts franchise cost. So what is the actual Dunkin’ Donuts franchise cost to you? The answer is–it depends. It depends on where you’re located, store size, construction and rental costs, and a host of other factors.
Don’t worry, we’ve done the research so you won’t have to. This article will show you the ropes of owning a Dunkin’ (the brand actually dropped Donuts from their name in 2018) and help you make an informed franchise decision.
Dunkin’ Donuts History Lesson
Dunkin’ was founded in 1950 by William Rosenberg in Quincy, Massachusetts. The brand is now headquartered in Canton, Massachusetts. Dunkin’ is a subsidiary of Dunkin’ Brands Inc., owner of Baskin-Robbins ice cream shops. Nearly all 6,700 Dunkin’s across the United States (and over 3,000 internationally) are owned and operated as franchises.
The brand has become a household name in 41 states and 36 countries. Serving over 3 million customers each day, hoping on the Dunkin’ bandwagon makes sense. So, you may be wondering, how much does a Dunkin’ franchise cost? Here’s our breakdown to get you started:
How Much Does a Dunkin’ Donuts Franchise Cost?
As an internationally renowned brand name, Dunkin’ franchise requirements can be a bit stringent. The company requires you have at least a $500,000 net worth and liquidity of $250,000.
If you meet the capital and liquidity requirements, Here’s the breakdown of a Dunkin’ Donuts franchise cost:
Estimated Initial Investment
Name of Fee
Low
High
Initial Franchise Fee
$40,000
$90,000
Building Costs
$19,500
$535,000
Site Development Costs
$0
$298,000
Additional Development Costs
$4,700
$82,500
Equipment, Fixtures, and Signs
$25,000
$268,000
Electronic Cash Register / Retail Technology System
$16,000
$61,000
Licenses, Permits, Fees, and Deposits
$500
$5,500
Real Estate Costs
Varies
Varies
Opening Inventory
$4,000
$20,000
Miscellaneous Opening Costs
$9,500
$70,000
Uniforms
$0
$1,200
Insurance
$4,500
$16,000
Travel and Living Expenses While Training
$2,000
$35,000
Marketing Start-Up Fee
$0
$10,000
Additional Funds for First 3 Months of Operation
$0
$105,000
ESTIMATED TOTAL* (real estate costs not included)
$95,700
$1,597,200
How Do I Start a Dunkin’ Donuts Franchise?
Once you’re done evaluating your finances, it’s time to appraise your business experiences and strengths. This is because Dunkin’ prefers franchisees that share Dunkin’s values. These are honesty, transparency, fairness, humility, respect, responsibility, and integrity. Sharing these qualities will make it easier for you to become a Dunkin’ Donuts franchisee in the application process.
You can then assess the market availability for the franchise before submitting your application. Markets are available in the US and Canada, as well as in over 60 countries all over the world. Make sure that the location you’re interested in has availability.
Dunkin’ has what are known as “reserved markets,” or markets specifically allocated for existing franchisees. Currently, the reserved markets are New England, Pennsylvania, Florida, Nevada, Delaware, Maryland, and Washington, DC.
On the other hand, Washington, Oregon, Idaho, Montana, Wyoming, Nebraska, and Alaska are considered as future markets. No Dunkin’ Donuts franchise has been opened there and offers no development opportunities yet.
After submitting your application, the Dunkin’ franchise team will review it. You will receive a confirmation of receipt once they get your request. This email will also include instructions on your next step. You’ll then be asked to provide proof of citizenship, financial resources, and provided a copy of the Franchise Disclosure Document.
After this screening, you’ll be interviewed by a Dunkin’ franchise manager and undergo a financial review. If you check all the boxes, you’ll receive your franchise approval!
If you’re interested in other franchising opportunities, visit FranchiseHOW.
