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Dunkin’ Donuts Franchise Review

About.com Rating 4 Star Rating
User Rating 2 Star Rating (11 Reviews)

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A Dunkin' Donuts cafe is viewed on July 25, 2013 in New York City. In a surprise to Wall Street, Dunkin' Donuts reported a same-store sales rise of 4 percent for the latest quarter. The coffee, donut and sandwich chain also announced its return to California with a deal for 45 new cafes in Southern California.
Spencer Platt/Staff/Getty Images
In 1946, William Rosenberg founded Industrial Luncheon Services, a company that delivered meals and snacks to workers in the Boston area. Rosenberg’s success convinced him to start a doughnut shop in Quincy, Massachusetts called the Open Kettle. Two years later, Rosenberg changed Open Kettle’s name to Dunkin’ Donuts. Today, there are more than 7,000 Dunkin' Donuts worldwide located in more than 40 countries. In the United States, alone, there are more than 5,200 Dunkin' Donuts restaurants located in 36 states.

Background and Benefits

Dunkin' Donuts offers some of the industries’ best field-support experts covering franchising, development, construction, and marketing. Dunkin' Donuts has proven expertise in providing franchise opportunities by offering comprehensive assistance that ranges from site selection through the development process to providing ongoing new product training. The Company’s training and support teams deliver the tools and information franchisees need with a level of support that is “among the best in the Quick Service Restaurant (QSR) industry.” Dunkin' Donuts provides the tools and guidance you would expect from a multi-national conglomerate, and they do it well. Dunkin' Donuts Technology is state-of-the-art, and helps franchisees “operate more efficiently and cost effectively.”

How Much Does a Dunkin' Donuts Franchise Cost?

Probably too much, and there’s the rub. After you pass your criminal background check, credit check, and proof of assets check, its on to due diligence and the development of your business plan. This is a labor of love requiring a net worth for 5 restaurants at a minimum of $1.5 million and $750,000 in cash reserves. If you are thinking about a partnership, go ahead, but there is one caveat; one single candidate must personally meet the financial qualifications. The start up fee is a tame $40,000 to $80,000 in contrast, and yes, if you want more units you have to expand at the rate of 5 at a time.

What We Like

We absolutely love the product, and unless you were born in a barn and never left the farm, you have both heard of and enjoyed this confection on many different occasions. An investor with excellent resources should consider this winner. It is like betting on all the horses with each one carrying a 20:1 payout. You can’t loose, and if you need a little cash to get started, Dunkin’ Donuts has lender relationships just waiting to help you. “Time to make the Donuts…”

Pros

  • Name Recognition - If you can afford it, Dunkin' Donuts offers unlimited profit potential for the most astute entrepreneur.
  • Competitive - Dunkin' Donuts is in the top 5 of all categories of franchises according to Entrepreneur magazine.
  • Online University - The Dunkin' Donuts Online University offers numerous learning programs, courses, and resources to franchisees and crew 24 hours a day, 7 days a week.

Cons

  • Candidate Profile - Becoming a Dunkin' Donuts Franchisee requires skills and resources that make this opportunity prohibitive for many investors.
  • Many Lawsuits - Dunkin' Donuts has been involved in many lawsuits with their franchisees. They have been involved in 10-15 times the amount of lawsuits then the average franchise.

Dunkin' Donuts Franchise Information

Business Established: 1950
Franchising Since: 1955
Start-up Cost: $40,000 to $80,000
Net worth requirement: $1.5M
Cash liquidity requirement: $750K

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