Dunkin’ Donuts is undoubtedly one of the world’s renowned fast-food chains due to its over 10,000 restaurants spread across over 45 countries globally.
However, one question popping up among Dunkin’ lovers is whether the donut and coffee house brand is a franchise. So, is Dunkin’ a franchise? I did some research about this, and this is what I discovered!
Is Dunkin’ A Franchise In [currentyear]?
Dunkin’ is a franchise as of [currentyear]. Dunkin’ Donuts Franchising LLC develops, operates, and franchises all retail restaurants utilizing its system. The franchised restaurants, in turn, sell coffee, espresso, donuts, bagels, croissants, sandwiches, and other baked items. Dunkin’ offers different restaurant franchises, including freestanding, shopping center or storefront, gas or convenience, and special distribution opportunity restaurants.
To find out more about whether Dunkin’ is a franchise, how much it costs, and how to buy the franchise, keep scrolling!
How Much Does A Dunkin’ Franchise Cost?
Dunkin’ franchise cost varies depending on the location, size, and the number of units in your fast-food restaurant.
With that, since various franchise fees are charged when opening any franchise, it contributes to the substantial initial investment.
But, generally speaking, the total investment lump sum you should have to buy a Dunkin’ franchise ranges from $97,500 to $1.7 million.
For instance, the initial Dunkin’ franchise fee ranges from $40,000 to $90,000, depending on the location of your store.
In addition, you must have a minimum net worth of $500,000 and a minimum liquid capital of $250,000 to run the restaurant seamlessly.
So, while these investment figures may seem significant, the Dunkin’ franchise’s upfront costs tend to be lower than similar fast-food franchises such as Krispy Kreme or McDonald’s.
Nevertheless, Dunkin’ may occasionally negotiate some rates for lending purposes via third-party lenders to provide financing to qualified franchisees.
Additionally, the financing amount and repayment period depend on the program, your creditworthiness, and the circumstances of your restaurant.
Typically, Dunkin’ Donuts offers an initial franchise term of 20 years and a conditional renewal term of 20 years if you meet all its requirements.
How To Buy A Dunkin’ Franchise?
Dunkin’ will, in turn, request you to provide proof of your existing assets and citizenship, after which the company will conduct background checks and look at your credit report.
After the primary screening process, book an appointment with the franchise manager to ask for any clarification on the franchise and write and submit your business plan.
Then, sign the franchise agreement to enter into a legal contract with the franchisor and the store development agreement to be granted the right to construct a Dunkin’ store in a specific location.
After that, ensure your store complies with Dunkin’s brand requirements, such as branding colors, and train your staff as you prepare for your restaurant’s grand opening.
Finally, Dunkin’ Donuts gives you between eight and 15 months to secure real estate, construct your store, and train your employees.
What Are Dunkin’ Franchise Requirements?
Dunkin’ Donuts requires all its franchisees to manage its network with the help of at least two people, who must be the franchisee, shareholder, or member and a designated representative.
Also, these two individuals must complete a training program that varies based on their role in the organization.
Moreover, the Dunkin’Donuts Brand Training Program will take 19 days to finish the instructional phases and doesn’t include in-restaurant practice, travel time, or online training.
In addition, this training program is offered virtually or at host franchisee restaurants by Dunkin’ Brands University (DBU) in Massachusetts.
Besides the classroom training, the University also offers some online training, requiring at least 65 hours to finish.
With that, Dunkin’ requires you and your employees to attend further brand training, including visiting the franchisor’s training facility in Braintree, Massachusetts.
Once the training process is completed, you are granted the right to run one quick-service restaurant at only the specified location in the Dunkin’ Franchise Agreement.
As if that’s not enough, as a first-time franchisee, you may be required to participate in opening another fast-food restaurant for at least ten days to get accustomed to the Dunkin’ standards.
Nonetheless, it’s worth noting that Dunkin’ doesn’t permit you to use alternative distribution channels other than that of your store.
Also, you are only allowed to sell food and drinks approved by the company, and your store must offer all the required menu items.
Finally, the Dunkin’ franchise doesn’t allow you to distribute or sell its products via electronic communication or the Internet without prior authorization.
Overall, Dunkin’ is one of the leading fast-food restaurant franchises based in Braintree, Massachusetts, United States.
Thus, the Dunkin’ franchise is an excellent investment choice if you intend to join the fast-food franchising business.