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FAQ’s About Our Franchise

Real Estate

While Shipley Do-Nuts is well-established in Texas, we currently have 340 stores and operating in 10 states.  We have many multi-store development opportunities available throughout the southern and southeastern U.S. We seek franchise candidates that have the ability to develop a minimum of 3 stores.


Shipley may consider expansion with select groups to other areas of the U.S. where we do not currently serve.  To that point, we will consider strong multi-unit restaurant operators with the passion, enthusiasm, and drive to develop 25 stores.

Each franchisee is responsible for acquiring or leasing real estate as well as contracting the construction of their restaurant. At Shipley Do-Nuts, we are very hands-on when it comes to supporting your store development.  Our real estate and development team will work with you in identifying the right locations, assisting with architectural drawings, working with your general contractor to ensure proper build-out, and handling your store equipment order. 

Why Shipley?

Owning a franchise offers support and direction that starting your own business does not. At Shipley Do-Nuts, you are investing in a company that has an established brand, best-in-class Do-Nuts and kolaches, and proven operating system.  Our leadership and support team are dedicated to your success as a franchisee and our vision is to expand our brand in select markets.

Every franchise is different in what type of training or support they offer. At Shipley Do-Nuts, franchisees get extensive hands-on training and support, with up to four weeks of training in Houston before opening.  Plus, new franchisees will receive on-site training support at your store opening.

Once the restaurant is built, our ongoing support includes providing equipment, food and supplies for your restaurant. A Franchise Business Consultant (FBC) will be assigned to your restaurant to assist you in evaluating and improving all aspects of your business.

 

 

Furthermore, our Marketing/Advertising team will help you with point-of-sale advertising materials, social media campaigns, and local store marketing strategies and will keep you informed of upcoming promotions.

As with any business, owning a franchise does have risks. However, with a proven, successful franchise, there is less risk than opening a new business.  At Shipley Do-Nuts, you are investing in a business model that already has a track record of financial validity, consumers are familiar with the Shipley brand, and proven operating systems are in place.  Plus, you are supported by a group of experienced restaurant veterans.

Ideal Candidates​

Successful franchisees with Shipley Do-Nuts are people who have an entrepreneurial spirit that want to make a difference in their communities. If you are passionate about the restaurant industry, have strong leadership skills, and proven business management or ownership experience, and are dedicated to building your business, you have the basic traits of a successful franchise candidate.

 

If you do not plan to be involved in the daily operations of your Shipley Do-Nuts franchise, you must have an approved and experienced operations manager to oversee the day to day operations of the Shipley Do-Nuts business.

Investment

The costs of becoming a franchise owner will depend greatly on the type of location and area of the country. You will be investing in the franchise name, plus in equipment, building costs and other inventory that will be needed to begin your business.  We estimate the total investment between $525,000 – $1,239,500 per store developed. The difference between low and high investment levels exists due to labor, location, varying store sizes, build-out costs and expenses, and your experience and management of the store’s development.
The franchise fee for a Shipley Do-Nuts store is $40,000.  The development fee for two or more stores is $10,000 for each additional Shipley Do-Nut shop.  You will receive an exclusive territory that is defined by counties or zip codes. Royalties are 5% of weekly gross sales and franchisees should spend a minimum of 3% of weekly gross sales towards local advertising/ marketing.  Shipley Do-Nuts does not have a national advertising fund in place at this time. 

Franchisees will need strong credit plus sufficient capital to develop multiple shops. As a franchisee, not only are you investing in the business, but Shipley is also invested in making sure you succeed in building the brand. We typically require a minimum development commitment of three stores.  To meet our financial qualifications, we require the following:
Credit score of 700+
Minimum net worth of $600,000 per Do-Nut shop developed*
Minimum liquidity of $200,000 per Do-Nut shop developed* 

 

* Minimum financial requirements can be based on individual, or partnerships combined net worth and liquidity.

How much money you make will depend on a lot of factors, including how well you:

  • Satisfy your customers’ needs by providing product assortment, value, quality, service, and a clean, and friendly environment
  • Implement all Shipley Do-Nuts operating principles
  • Recruit and develop a top-rate, customer-focused store staff that can effectively communicate with your customers
  • Monitor your sales trends while managing your expenses

We encourage prospective franchisees to conduct significant due diligence before committing to any new business venture. Existing Shipley Do-Nut franchisees are an excellent source for answering questions about operations, marketing, finances, etc.

 

The amount of profit or loss is dependent on many factors including the franchisee’s ability to manage the business, drive sales volume, and control operating costs. Names and phone numbers of existing franchisees are available by request.

Multi-Unit

We prefer multi-unit development agreements, a minimum commitment of 3 stores.  There are special circumstances under which we may consider smaller (one- or two-unit) agreements.
Yes. Shipley Do-Nuts offers multi-unit development agreements for specific geographic areas. The terms of the development agreement (including the number of units to build and the necessary time frame within which to have them open) are determined by the characteristics of the area in question. Factors that are considered include:
  • Potential for the area to support new restaurants
  • The number of restaurants stipulated in the agreement
  • The degree to which the specific area or municipality is conducive to development.
Shipley Do-Nuts determines an area’s potential based on population, demographics, competition, and other factors.
Our 2021 Growth is Just a Taste of Things to Come
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