Franchise Deep Dive: Shipley Do-Nuts Franchise Costs, Fees, Profit and Data

LAST UPDATED: 2/2024

FRANCHISE WEBSITE: https://ownashipleydonuts.com/ 

NUMBER OF LOCATIONS: 330+

REPORTED COST TO GET IN: $655,000 to $1,339,500

REPORTED ROI (Item 19): $1.44 million (AUV achieved by the top 25% of stores with drive-thrus)

Shipley Do-Nuts is a popular doughnut and kolache franchise that’s known for offering a variety of over 60 types of doughnuts, with the plain glazed being a best seller. The company prides itself on the consistency and freshness of its products, aiming to delight customers of all ages.

How Many Shipley Do-Nuts Locations Are There?

Shipley Do-Nuts was founded in 1936 in Houston, Texas, by Lawrence Shipley Sr. Initially, the doughnuts were sold wholesale and were five cents a dozen. However, due to their popularity, Shipley began offering the doughnuts to the public within four years.

Lawrence Shipley Jr., the son of the founder, worked in the family business his entire life and continued his father's vision. Under his leadership, Shipley Do-Nuts expanded its menu to include kolaches and grew the company in several southern states. Today, the franchise has expanded to over 330 locations.

What Is The Shipley Do-Nuts Business Model?

Shipley Do-Nuts' business model focuses on offering a turnkey franchise opportunity with low investment requirements, streamlined operations, flexible store models and comprehensive support for franchisees. The company aims to capitalize on market demand for doughnut products while providing a rewarding opportunity for entrepreneurs and investors in the foodservice industry.

Here are the key components of Shipley Do-Nuts' business model as outlined in the provided information:

• Low Investment: Shipley Do-Nuts emphasizes a low investment requirement compared to many other quick-service restaurant (QSR) brands. This makes it an attractive option for individuals looking to enter the foodservice industry or expand their restaurant portfolio.
• Streamlined Operations: The business model features streamlined operations and efficient back-of-the-house kitchens, making it easier for franchisees to run their bakery operations. This efficiency allows more room for growth and focuses on providing quality customer service.
• Flexible Store Models: Shipley Do-Nuts offers flexible store models, including in-line, end-cap, and free-standing options. This flexibility allows franchisees to choose a store model that aligns with their goals, resources and market preferences.
• Training and Support: Shipley Do-Nuts provides training and support for franchisees through a strong executive, operations and marketing team. Franchisees receive guidance and assistance in various aspects of running their bakery business, including operations, marketing, and customer service.
• Market Demand: Shipley Do-Nuts operates in the QSR industry, which has a robust demand for doughnut products. The company highlights the growing demand for quality and convenience in the industry, positioning itself to capitalize on market trends and consumer preferences.

The ideal franchisees for Shipley Do-Nuts demonstrate a strong commitment to operational excellence, customer service, and product quality, while also possessing an entrepreneurial spirit and relevant experience in sales, marketing or retail. They should have excellent people skills, be able to foster a friendly atmosphere, and engage in community involvement. 

Shipley Do-Nuts seeks franchisees who are dedicated to making their bakery successful, embodying the company's values of honesty, integrity and hard work while leveraging their passion and expertise to drive growth and achieve success in the QSR industry.

How Much Can Shipley Do-Nuts Owners Make?

The Average Unit Volume (AUV) achieved by the top 25% of stores with drive-thrus, as disclosed in the Franchise Disclosure Document (FDD), is $1.44 million.

However, the franchise notes that the potential profitability of a Shipley Do-Nuts relies on various factors, such as meeting customer needs with product assortment, quality and service in a clean environment, adhering to operating principles, developing a customer-focused staff, and effectively managing sales trends and expenses. 

Prospective franchisees are encouraged to conduct thorough due diligence, and existing franchisees can provide valuable insights into operations, marketing and finances. Profitability hinges on the franchisee's ability to manage the business, drive sales and control costs, with existing franchisees available to offer further information upon request.

How Much Does It Cost to Open a Shipley Do-Nuts Franchise?

The initial investment for Shipley Do-Nuts is estimated to be from $655,000 to $1,339,500. This includes:

• Initial Franchise Fee: $40,000
• Store Equipment: $150,000 - $200,000
• Opening Inventory: $7,500 - $25,000
• Leasehold Improvements: $350,000 - $750,000

Other fees include: 

• Working Capital for 3 Months: $50,000 - $150,000
• Initial Advertising: 1% of gross sales
• Initial Royalty (Conditions Apply): 1% of gross sales
• Monthly Co-op Fee: 3% of gross sales

What Is the Franchise Fee for Shipley Do-Nuts?

The franchise fee is $40,000. 

Who Are the Leaders of Shipley Do-Nuts?

• Flynn Dekker - CEO
• Donna Josephson - Chief Marketing Officer
• Brad Reynolds - Chief Financial Officer
• Chris Smith - Vice President of Operations and Training
• Jim Fisher - Senior Vice President of Supply Chain
• Kerry Leo - Vice President of Technology
• Keith Sizemore - Senior Vice President of Franchise Development
• Ben Bass - Senior Director of Real Estate
• Kenny Wilganowski - Director of Construction and Maintenance
• Jessica Lawson - Director of Marketing

What Helpful Articles Can I Read to Learn More?

• Our Multi-Unit Franchise Growth Plan
• Ideal Candidates for Our Multi-Unit Franchise Opportunities
• How Our Donut Franchise Is Embracing Digital Innovation in 2024
• Eight Donut Franchise Benefits: Why You Should Invest
• All About Shipley’s Business Opportunities in Mississippi

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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