Why Own a Doughnut Franchise?

The doughnut industry is roughly worth $8.9 billion and is expected to grow 2.3% in 2023. Krispy Kreme, Dunkin’ Donuts and Tim Hortons are a few household names when it comes to the tasty confections. 

Despite the pandemic, the doughnut franchise industry manages to keep growing year after year. In fact, in 2021, the industry was worth $7.6 billion. Krispy Kreme found a way to stay relevant during the pandemic by offering a free doughnut to people who could prove they were vaccinated. Now, the brand is incorporating automation to help with the lack of access to its products. The brand has pivoted from a bakery-first model to a hub and spoke model. Grocery and convenience stores get Krispy Kreme doughnuts “delivered fresh daily” (DFD), and this model has increased sales.  

Below is the cost to invest in popular doughnut franchises and the potential earnings for each franchise. 

Dunkin’ Donuts

Dunkin’ Donuts is well-known for its doughnuts and various coffee flavors. Dunkin’ stands out and stays relevant all year with seasonal drink promotions and a large variety of doughnut options. Though it is a doughnut brand, Dunkin’ does not pigeonhole itself to only selling doughnuts. It offers a variety of other breakfast items such as hash browns and croissants that are available all day long. Dunkin’ also stays fresh in people’s minds by having fun commercials with celebrities like Ben Affleck’s Superbowl cameo. 

According to Sharp Sheets, on average, a Dunkin’ Donuts franchisee can earn around $1,056,521 a year. The investment cost for Dunkin’ Donuts is $526,900–$1,787,000, and the franchise fee is $40,000–$90,000. To qualify as a candidate, you need a minimum of $250,000 in liquid assets. To become a franchisee of Dunkin’ Donuts, you can visit the site here. 

Hurts Donut

Hurts Donut Company is a 20-unit doughnut, coffee and cake franchise. A younger brand, Hurts Donut was founded in 2013 and will be hitting its 10-year anniversary this November. The company has been franchising since 2015 and has target markets all over the country. 

According to the  2020 Franchise Disclosure Document (FDD), there were 20 franchises operating during the year. Of those 20, 16 operated the entire 2020/ The gross revenue earned was $613,788–$1,562,719.

The initial investment to open a Hurts Donut franchise is $502,000–$819,000. The franchise fee is $35,000, and candidates should have a net worth of $500,000. To start franchising with Hurts Donuts, you can visit their website and download an application form. 

Tim Hortons 

Tim Hortons was founded in 1964 in Hamilton, Canada. After being open for three years, the brand started franchising in 1967.  The brand not only offers doughnuts but also a wide range of breakfast options and coffee. Though Tim Hortons was started in Canada, there are now over 600 locations in the United States. There are several existing markets in the northeast. Priority markets include Texas, California, Illinois and Florida. 

The initial investment for a Tim Hortons is $94,000–$2,162,500. The franchise fee is $50,000. According to Tim Horton’s 2021 FDD, the average monthly gross sales for Tim Hortons in the U.S. was $89,532. To learn more about franchising a Tim Hortons, click here.