Franchise Deep Dive: Duck Donuts Franchise Cost, Fees, Profit and Data

Interested in opening your own donut franchise? With nearly a decade of franchising experience, Duck Donuts boasts an attractive return on investment.

By Jeff DwyerStaff Writer

Updated 9:09AM • 03/06/24

LAST UPDATED: December 2023
FRANCHISE WEBSITE: https://www.duckdonuts.com/franchising/
NUMBER OF LOCATIONS: 100+
REPORTED COST TO GET IN: $424,285 to $608,835
REPORTED ROI (Item 19): $847,623 (Average annual net sales for top 25% of franchises)

Duck Donuts is a donut shop franchise concept that sells “warm, delicious and made-to-order” donuts, coffee and ice cream across the United States. Duck Donuts was founded in North Carolina in 2007 by Russ DiGilio, who wanted to create a place for families to be able to purchase delicious donuts and other treats.

Duck Donuts, which is now headquartered in Mechanicsburg, Pennsylvania, began offering franchise opportunities in 2013. Its first franchise location was opened in Williamsburg, Virginia.

How Many Duck Donuts Locations Are There?

As of December 2023, Duck Donuts has more than 100 stores open and even more in development across the country. The brand also has three international locations in Cairo, Egypt; Doha, Qatar; and Bangkok; Thailand.

What Is the Business Model of Duck Donuts?

Duck Donuts’ business model is centered around serving each customer a warm, delicious, and made-to-order donut in its family-friendly and beach-inspired atmosphere. Duck Donuts describes its franchise opportunity as “a simple, fast-growing and easy to-run concept with a small footprint.”

Duck Donuts also offers:

Multi-unit development options
Multiple store layout designs to fit a variety of scenarios
Non-traditional locations and food trucks
Catering and events for additional revenue opportunities

Additionally, Duck Donuts provides each of its stores with the support, resources and tools they need to get up and running. The brand lists the following assistance that it provides new owners:

Real estate and construction
- Assistance in securing and negotiating all lease or sale terms for your store
Operations and training
- Provides in-depth training and operations instruction
Marketing Team
- Assists with all facets of marketing your location

How Much Can Duck Donuts Franchise Owners Make?

According to the brand’s consumer-facing website, in 2022, the top 25% of Duck Donuts franchise locations earned an average of $847,623 in annual net sales.

How Much Does It Cost To Open a Duck Donuts Franchise?

As of the publishing of this story, the initial investment required to open a Duck Donuts franchise ranges from $424,285 to $608,835. This investment is broken down into the following costs:

Franchise Fee: $40,000
Training Expenses: $0 to $2,500
Premises Deposits: $2,500 to $4,500
Professional Design: $6,000 to $15,000
Leasehold Improvements: $240,000 to $350,000
Signage: $8,700 to $13,500
Furniture, Fixtures and Equipment: $110,000 to $137,000
Computer Systems: $15,000 to $17,000
Initial Inventory: $7,000 to $10,000
Grand Opening Marketing: $12,500 to $15,000
Professional Fees: $750 to $5,000
Licenses and Permits: $100 to $2,000
Insurance: $3,000 to $5,000
Operating Expenses Additional 3 Months Funds: $20,000 to $30,000

Franchise owners are also required to pay an ongoing royalty fee of 5% of gross sales and 2% toward a national marketing fund.

What Is the Franchise Fee for Duck Donuts?

The initial franchise fee required to open a Duck Donuts franchise is $40K. Interested candidates must also have a minimum net worth of at least $400K and no less than $200K in liquid capital.

Duck Donuts also offers a 10% discount off its initial franchise fee for qualified military candidates.

Who’s On Duck Donuts’ Leadership Team?

What Helpful Articles Can I Read to Learn More About Duck Donuts?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.