How do I Open a Doughnut Franchise?

Erin J. Hill

There are many factors that must be considered before you can successfully open a doughnut franchise. Tasks such as securing funds, obtaining a franchise license and choosing the right establishment are all obstacles you must overcome. To give yourself the best chance as success, take your time and thoroughly investigate all the options.


First you need to determine which doughnut franchise you want to open. There are several options to choose from. To figure out which one is the best option for you, do a little homework on the market. Is there already a particular doughnut franchise in your area but not another? Perhaps one is less expensive, with lower franchise fees and building costs. The main goal in making a decision is to choose a store that requires as low an investment as possible while still offering a high income potential.

Chocolate glazed doughnuts.
Chocolate glazed doughnuts.

Once you have chosen a franchise opportunity, you can find out how to apply for your franchise license on the company website. Often times, companies will have limits to the number of stores offered in a single location or region. The owner or parent company will review your application and provide you with additional information in getting started.

Next you will need to secure funding for the doughnut franchise. This can be quite expensive, with exact numbers depending on the business. You may need to take out a small business loan from a bank or another financial institution in order to get started.

Because a franchise is a hybrid between being an employee and a business owner, you will need to educate yourself on all regulations and rules regarding the running of your doughnut franchise. Typically, franchise owners must use the parent company’s business model, marketing strategies, brand names, logos and products. It may be possible to offer things particular to your location, but this will have to be worked out with the parent company ahead of time.

There are many benefits to operating a business in this way in comparison to starting a new company. For starters, 90% of all start-up businesses fail; whereas an equal number of franchises succeed. This is because franchised business have the advantage of using a proven business model along with a name brand that consumers have already learned to trust. With a new business, you are required to find and keep customers from scratch.

Once you have all licensing, fees, and products taken care of; you can finally enjoy your grand opening. A percentage of total sales is typically required to go to the parent company, but the income for a franchise owner can be excellent. Take advantage of all company-wide promotions and offer your customers quality services to keep them coming back. This will help you maintain your parent company's good name, while ensuring your own success.

A cup of coffee from a doughnut franchise.
A cup of coffee from a doughnut franchise.

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