Dunkin’ Donuts Franchise Costs
Buying a franchise allows you to hit the ground running — the brand often provides training, supplies the products and helps with marketing, so you don’t have to start from scratch. But franchising also comes with significant startup and ongoing costs.
You may be able to get a donut from Dunkin’ for only two or three dollars, but the Dunkin’ Donuts franchise cost will leave a bigger dent in your bank account. The minimum investment needed to open a Dunkin’ franchise is $121,400, while some locations may require an investment of up to $1,809,500.
Dunkin’ franchise overview: What to know
For 75 years Dunkin’ (formerly Dunkin’ Donuts) has been serving coffee and baked goods, though the advent of the company’s famous pumpkin-flavored fall treats came later. Dunkin’ has more than 13,200 restaurant locations worldwide, with more than 9,775 located in the United States, and serves more than 4.5 million customers each day. All Dunkin’ Donuts restaurants are franchises.
Dunkin’s parent company, Inspire Brands, works with more than 2,800 franchisees across its portfolio of restaurants. Inspired Brands acquired Dunkin’ Brands Group in 2020. Other restaurants under the parent company include Arby’s, Baskin-Robbins, Jimmy John’s, Buffalo Wild Wings and SONIC.
Dunkin’ Donuts franchise costs
Buying a franchise can be costly. To begin operating a Dunkin’ franchise, you’ll need to invest between $121,400 and $1,809,500 upfront. Dunkin’ does not provide financing directly, but does partner with lenders to offer a variety of types of small business loans, including equipment loans and commercial real estate loans.
The fees vary by location and store type. For traditional investment opportunities in stores ranging from 750 to 3,100 square feet, you can expect the following startup and ongoing costs:
- Initial franchise fee: $40,000 to $90,000
- Ongoing royalties: 5.9%
- Advertising fee: 5%
- Investment range: $526,900 to $1,809,500
For non-traditional opportunities, such as restaurants in airports and universities that are as small as 500 square feet, the fees and requirements are different. You can expect the following startup and ongoing costs:
- Initial franchise fee: $10,000 to $90,000
- Ongoing royalties: 5.9%
- Advertising fee: 5%
- Investment range: $121,400 to $1,310,500
To be eligible for these opportunities at Dunkin’ Donuts, you’ll need to meet the financial criteria, which vary by market. At a minimum, you’ll need:
- Net worth: $500,000 per store
- Liquid assets: $250,000
Dunkin’ may offer temporary cost-reduction incentives for franchisees investing in select markets or pursuing multi-unit opportunities. The company also offers discounted franchise fees to qualified veterans.
Dunkin’ Donuts franchise process
To apply for a Dunkin’ Donuts franchise, follow these steps:
Contact the franchise development team
Start by filling out the form on the Dunkin’ franchise opportunities site to get in contact with the franchise development team. The team will provide you with a copy of the Franchise Disclosure Document (FDD) so you can learn more about the Dunkin’ franchise system and ask questions.
Prepare for an interview
The franchise development team will make an appointment to interview you. Prepare to answer questions about your experience and qualifications. Dunkin looks for franchisees with a passion for business ownership who love Dunkin’ donuts and coffee, have experience in sales or marketing and know how to manage employees. If you meet the franchise requirements for your market, the team will invite you to apply.
Fill out the application
Fill out the franchise application form provided by the franchise development team. You’ll provide your personal details and request your desired franchise opportunity on this form.
Secure franchise funding
The next step is to get a business loan. Dunkin’ can connect you with lenders offering franchise financing, including SBA loans, or you may choose to work directly with a bank or online lender. Some of the options you might consider include:
- SBA 7(a) loan: This popular loan program from the U.S. Small Business Administration offers up to $5 million in funding that you can use for almost any business need, including working capital and the construction or renovation of a building.
- SBA 504/CDC loan: These are long-term, fixed-rate loans in amounts of up to $5 million that can be used for major fixed assets, such as a new store or kitchen equipment.
- Equipment loan: With an equipment loan, you borrow the money upfront to buy large kitchen machinery and repay it in fixed, monthly installments of principal and interest. The equipment serves as collateral for the loan, and you may be required to make a down payment.
- Business line of credit: Business lines of credit come with lower borrowing limits, but you can borrow from these revolving lines of credit as needed and you’ll only pay interest on what you borrow.
Submit your fee and sign the franchise agreement
Make sure to review the agreement carefully and answer any questions you may have. Once you sign the agreement and pay the initial franchise fee, you’ll become an official Dunkin’ franchise owner.
Complete the training
Before your store opens, you’ll need to complete the 15-day Dunkin’ Brand training program and get access to online training programs to learn more about managing a restaurant. Dunkin’ provides comprehensive training on everything from operations to marketing, so you can get into business with confidence, even if you have limited experience.
Prepare for your grand opening
You’ll work with the Dunkin’ real estate team to develop your site. You’ll then need to set up your back-of-house technology, train your employees and access marketing programs for your store before your grand opening.
Dunkin’ Donuts franchise pros and cons
Pros
- Dunkin’ supports franchisees with construction, training, technology and marketing
- Dunkin’ consistently ranks as the number one coffee brand in the Brand Keys Customer Loyalty Index
- Non-traditional restaurant options require a lower initial investment
Cons
- Dunkin’ doesn’t offer franchisor-direct financing
- Franchisees are required to have $500,000 in net worth and $250,000 in liquid assets
- Buying a Dunkin Donuts’ franchise may limit your creativity, since products and marketing strategies will be decided for you
Franchise alternatives to Dunkin’ Donuts
If a Dunkin’ Donuts franchise doesn’t seem like the right business opportunity for you, there are many other restaurant franchises you might consider. Here’s how a few other options compare.
McDonald’s
If burgers are more your speed, McDonald’s provides more extensive training and support to franchisees than Dunkin’ Donuts. You’ll be required to participate in a 12- to 18-month training program, which you may view as helpful or cumbersome.
McDonald’s does not offer financing and has more stringent financial requirements than Dunkin’ — you must have at least $500,000 in non-borrowed, unencumbered, personal resources to be considered. McDonald’s also requires franchisees to have at least $100,000 in working capital for each restaurant.
- Initial fee: $45,000 (as of 2023)
- Total investment: Undisclosed
- Liquid assets: $500,000 + $100,000 per restaurant
Subway
Subway is a sandwich franchise that has more lenient financial requirements for prospective franchisees and a lower initial investment than many other restaurants. The company also offers the potential to invest in multiple units, and you can enjoy a quicker timeline to opening if you choose to remodel an existing restaurant. Subway also offers a three-week online training program and ongoing support.
However, there are ongoing royalty and advertising fees that add up to 12.5% of gross sales. In addition, the following startup costs are required:
- Initial fee: $15,000 per location
- Total investment: $229,050 to $522,300, not including real estate
- Liquid assets: $100,000
Cold Stone Creamery
Cold Stone Creamery is an artisanal ice cream franchise that has been around for more than 35 years and is rapidly expanding. The company aims to open hundreds of locations over the next several years.
Unlike many other franchise restaurants, Cold Stone Creamery doesn’t require you to have restaurant experience to get started. Plus, the company offers initial and ongoing training with monthly check-ins. Marketing and PR assistance is also provided, including social media training. And the Cold Stone Creamery initial investment requirement is lower than the Dunkin’ Donuts franchise cost.
- Initial fee: $18,500 to $59,500
- Total investment: $120,700 to $655,275
- Liquid assets: $125,000
As with any franchise opportunity, there are significant costs involved and, even with the included support, you’ll need to devote a lot of time and energy to achieve success for your Dunkin’ store. If you do proceed with opening a Dunkin’ franchise, be sure to celebrate your new business with a bite of something chocolate-glazed or rainbow-sprinkled.
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