How to Start a Donut Shop: Why a Donut Franchise Is One of the Best Low-Cost Investments

Tips and guide to starting in shipley do-nut franchise

The donut franchise segment has some of the lowest start-up investment costs in the quick- service restaurant (QSR) industry, and donut stores in the US continue to grow rapidly. According to IBISWorld, donut stores in America have a market size of over $7 billion, and in 2022, the industry’s market size has grown by 3.8%.

Having heard these numbers, you might be wondering how to start a donut shop with one of the country’s top donut franchises.

It was 1936, at the end of the Great Depression, when Shipley Do-Nuts owner, Lawrence Shipley, hit upon a delicious idea: a gourmet donut so tasty it would withstand the test of time. And that it did. At Shipley Do-Nuts, we offer a wide variety of donut delicacies, not to mention, in addition to donuts,  our customer favorite: kolaches.

Here’s how you can join the family and carry the Shipley legacy.

Steps to Owning a Donut Shop Franchise with Shipley

We pride ourselves on a franchise process that’s straightforward and transparent. Multi-unit franchising is Shipley’s strategy for growth across the country, and we’re seeking candidates with the ability to develop three or more stores.

Our streamlined operating system and flexible real estate options can maximize return on investment for experienced operators who want to expand their QSR portfolio. Follow our simple franchise ownership steps to join one of the leading donut franchises in the country:

  1. Complete the franchise application.
  2. Phone interview with our Franchise Director.
  3. Review our Franchise Disclosure Document (FDD).
  4. Attend the Shipley Do-Nuts Discovery Day.
  5. Prepare a business plan and complete your due diligence.
  6. Sign the franchise agreement and pay the franchise fee.
  7. Begin the site selection and lease negotiation processes.
    Start the construction phase.
  8. Schedule operations training.
  9. Complete construction and develop a marketing plan for the opening of your Shipley Do-Nuts store.
  10. Store opening.
  11. Repeat the process for additional new locations.

We’ll be with you every step of the way! Your donut franchise investment costs at Shipley Do-Nuts cover exceptional training and support that’ll pave your path toward success.

How to Start a Donut Shop with Shipley: Investment Costs

With a monthly royalty that amounts to just 5% of gross sales and a monthly local marketing requirement that costs just 3% of gross sales, Shipley Do-Nuts allows our franchisees to reap more financial rewards. This, in combination with our low investment costs, makes Shipley a perfect portfolio expansion opportunity.

Here are the costs involved with opening a donut shop with Shipley:

  • Initial franchise fee: $40,000
  • Store equipment: $120,000 – $200,000
  • Opening inventory: $7,500 – $25,000
  • Leasehold improvements: $250,000 – $600,000
  • Working capital for three months: $50,000 – $150,000
  • Initial advertising: $5,000 – $10,000

Multi-Unit Opportunities with One of the Leading Donut Franchises

Our multi-unit franchise opportunities are designed for entrepreneurs with experience and success investing in the quick-service restaurant industry and who are looking to build their portfolios with another top-performing brand. With a three-store minimum commitment requirement, Shipley Do-Nuts offers a franchise opportunity with a donut franchise cost and growth potential that is ideal for investors like you!

Would you like to learn more about how to open a donut franchise with Shipley? Contact us today to fill in the application and start your journey with the Shipley family!

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