Dunkin’, initially founded as Dunkin’ Donuts in 1950 by Bill Rosenberg, has evolved into a globally recognized coffee and doughnut powerhouse.
With over 70 years in the business, Dunkin’ stands as one of the world’s largest quick-service restaurant brands.
Dunkin continues to expand its reach into categories other than breakfast, focusing on offerings other than serving coffee and donuts. This has helped the brand build a proven business model that has continued to grow for nearly a decade.
Headquartered in Canton, Massachusetts, Dunkin’ has expanded its reach globally, boasting more than 12,000 restaurants in 36 countries.
The brand, known for its variety of hot and iced beverages and iconic baked goods, serves over 3 million customers daily. The vast majority of Dunkin’ outlets are franchise-owned, with the parent company, Inspired Brands, recently acquiring 31 restaurants in 2022.
Dunkin’ became a part of Inspired Brands’ portfolio in 2020, further cementing its position as a key player in the international restaurant industry.
Key Takeaways
- Dunkin’ operates a successful franchising model, contributing to its rapid global expansion and ranking as the #6 best franchise in Entrepreneur’s “Franchise 500 Ranking” list.
- Dunkin’ franchisees undergo a rigorous process including financial reviews and business plan evaluations, followed by comprehensive training to uphold brand quality.
- With over 11,000 franchises worldwide and 9,571 in the U.S., Dunkin’ is a leading player in the coffee and doughnut market, focusing on continuous growth and a beverage-led strategy.
- Starting a Dunkin’ franchise requires a significant investment ranging from $121,400 to $1,787,700, with detailed support in financing, location selection, and store construction.
- Dunkin’ franchise owners pay initial and ongoing fees, contributing to an average annual salary of around $124,000, with earnings varying by location and store traffic.
Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners
Is Dunkin’ A Franchise?
Yes, Dunkin’ operates on a traditional franchising model, where franchisees own and manage their individual stores. This approach has significantly contributed to Dunkin’s rapid expansion over the years.
In fact, Dunkin’ continues to see such strong growth in the market that it was named the #6 best franchise to own in Entrepreneur’s “Franchise 500 Ranking” list.
Prospective franchisees undergo a rigorous approval and application process, including financial reviews and business plan evaluations, culminating in the application process and signing of the franchise agreement.
Once approved, franchisees complete a comprehensive training program to ensure they can deliver the high-quality experience synonymous with the Dunkin’ brand.
Known for its strong brand identity and quality products, Dunkin’ entrusts franchisees with the daily operations of their stores, including the sole responsibility for marketing and royalty fees to the Dunkin brand parent company.
Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)
Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.
This Will Save You So Much Time.
We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.
How Many Dunkin’ Are There In The U.S.?
Dunkin’, a renowned name in the coffee and doughnut industry, has over 11,000 franchises globally, with the United States hosting more than 9,571 as of January 2022.
Since beginning its franchising journey in 1955, Dunkin’ has consistently expanded domestically and internationally. Known for its wide range of coffee and tea beverages, alongside an ever-growing food menu, Dunkin’ has become a favorite franchise worldwide.
With its continuous growth and focus on being a beverage-led brand, Dunkin’ is poised to remain a dominant player in the global coffee and doughnut market for the foreseeable future.
What Training Is Required To Open A Dunkin’?
Once your Dunkin’ franchise application is approved, you’ll embark on a comprehensive training program. This includes web-based courses covering essential business management skills and a three-day intensive business course held in Boston, Massachusetts.
Most franchisees can expect to spend 4-6 weeks in training before they are allowed to open their Dunkin’ store. This timeline includes online training and in-person training.
Alongside this educational journey, you’ll receive support in securing financing, selecting a first store location and, and starting the construction of your store.
How Much Does It Cost To Open A Dunkin’?
Starting a Dunkin’ franchise requires an upfront investment ranging from $121,400 to $1,787,700. Dunkin’ offers franchisees a number of options when starting their location, and this is why the Dunkin’ franchise cost varies so much.
While Dunkin’ doesn’t offer direct financing, they have partnerships with lenders who can provide various small business loans, including those for equipment and commercial real estate.
For those looking at traditional store formats, which are usually between 1,200 and 2,600 square feet, the financials breakdown as follows:
- You’ll need to pay an initial franchise fee that ranges from $40,000 to $90,000.
- The ongoing franchise fee varies between 2% and 6%.
- There’s also a 5% advertising fee.
- Overall, you’re looking at a total investment between $526,900 and $1,787,700.
For non-traditional locations like airports or universities, multiple locations where the space might be around 500 square feet, the costs and fees are a bit different:
- The annual franchise fee is between $1,000 and $2,250.
- The ongoing franchise fee here is 5.9%.
- The advertising fee is reduced to 2.5%.
- And the total investment needed ranges from $121,400 to $972,800.
This range of financing options also provides potential Dunkin’ franchisees with the flexibility to choose the franchise business model that best aligns with their own business goals and budget.
What Is The Dunkin’ Franchise Fee?
Dunkin’ requires franchise owners to pay a franchise fee before they are allowed to open a franchise of their own. This fee goes towards administrative support for the franchisee, and it secures the territory for the franchisee.
This fee can vary based on several aspects, including the franchise’s location and the number of stores you plan to purchase.
Typically, the initial franchise fee for a Dunkin’ franchise ranges from $40,000 to $90,000. Beyond this initial investment, to open a Dunkin’, franchisees must pay an ongoing royalty fee of 5.9% of the store’s gross sales and a brand fund fee, also calculated as a royalty fee of 5% of gross sales.
Potential Dunkin’ franchisee owners should also meet specific financial criteria, including a minimum net worth of $500,000 and at least $250,000 in liquid assets. These financial requirements ensure franchisees are well-equipped to successfully establish and grow their Dunkin’ business.
How Much Does A Dunkin’ Make A Year?
As a Dunkin’ franchise owner, you can expect to make an average annual salary of around $124,000. This profit is what remains after paying for royalties, rent, and an advertising fee of 2-6%.
Your earnings can vary significantly based on your store’s location. Options include:
- A standalone store
- A mall or shopping plaza location
- A non-traditional setting like a gas station
- A drive-through outlet
- Earnings are influenced by store traffic, which depends on the location and type of your store.
For example, a Dunkin’ with a drive-through in a busy business area might see higher sales, especially during mornings. It’s important to consider these factors when planning your franchise type and developing your business plan.
Franchise Empire’s Thoughts
Dunkin is an iconic American brand! “America runs on Dunkin” right?!
I have a friend of mine that has owned over 47 Dunkin Donuts
Look I think with these flagship franchises, if you have a lot of money or access to a lot of money then really the only play here is owning multiple of these locations…if you can.
Most, if not all of the territories are sold out and not available and the start up costs are high.
The barrier to entry is also high.
The food franchising game overall is not one where you can own just one location and create any sense of freedom. That comes from multiple locations with layers of managers in place.
The best way to own a Dunkin? It’s probably to buy existing locations from current owners.
That’s probably difficult as there are a lot of Private Equity and big money groups that own 10, 20, 50 locations that typically come in and buy out these other owners.
So hey, for now just enjoy getting your donuts and coffee without having to wake up at 3am and manage a bunch of high schoolers and college kids.