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How to Open a Dunkin’ Franchise

What to know before investing in one of America’s top coffee franchises.

By Victoria CampisiStaff Writer
Updated 3:15PM 08/05/22

Dunkin’ is perhaps one of the most recognizable food and beverage franchises today. 

Since its humble beginnings in 1950, the chain has grown to 12,000 locations worldwide and 8,000 locations within the U.S. Though still commonly referred to as Dunkin’ Donuts, the chain actually dropped the Donuts part in 2019 to reflect the wider scope of its offerings.

Dunkin’ has a multi-step process for joining their franchise, according to Nerdwallet. This may take between 60 and 90 days, during which they will review your application and business plan. 

If you want to help America “run on Dunkin,” here’s a closer look into how to get started. 

Consider the Costs

As a Dunkin’ franchisee, you should have $250,000 minimum in liquid assets and a net worth of $500,000 per restaurant, depending on your market. You may also purchase an existing Dunkin’ franchise by meeting the minimum financial requirements for your desired market.

Dunkin’ offers traditional and non-traditional franchise opportunities, both with their own financial requirements. 

Traditional

  • Franchise fee: $40,000–$90,000
  • Continuing franchise fee: 2-6%
  • Store size: 1,200–2,600 sq. ft. 
  • Minimum net worth: $500,000
  • Advertising fee: 5%
  • Investment range: $526,900–$1.8 million 

Non-traditional: 

  • Franchise fee: $1,000–$2,250 per year
  • Continuing franchise fee: 5.9%
  • Store size: from 500 sq. ft. 
  • Minimum net worth: $500,000
  • Investment range: $121,400–$972,800

Note that Dunkin’ does not provide financing. It does have partnerships with preferred lenders who can offer you flexible financing options and other services, including SBA-backed loans for smaller transactions. 

Submit a Franchise Application

After reviewing costs and deciding if this is the right opportunity for you, you can submit a franchise application online. You will also be asked to upload a resume during the application process, according to Nerdwallet. 

After receiving your application, Dunkin’ will send you its franchise disclosure and qualification package. This will include the company’s financial statements, a copy of the franchise agreement, a list of existing franchisees who are able to answer questions, and a breakdown of costs.  

Complete a Business Plan

After the initial screening is completed, you will meet with a franchise manager who will outline the next steps. At this point, you can ask an experienced franchisee questions and get advice on your business plan. 

When writing your business plan, you should include a market analysis, potential sites to construct your franchise, marketing and sales plans and a financial plan/projections.

Be Approved

Once your business plan is approved, your next step is to sign a store development agreement. This gives you the right to develop a Dunkin’ store within a geographical territory. 

Additionally, you will sign the franchise agreement — a legal contract between franchisee and franchisor that outlines the expectations of each party. 

Prepare for Opening

Next comes franchisee training. The Dunkin’ Brand training program is provided to all new franchisees for about 15 days, and you will be given access to online training programs to learn about the brand as well as the ins and outs of restaurant management.

An experienced team will also help you with development, real estate, construction, marketing, ops, and more. Each franchisee is also provided with access to and is required to purchase, certain technology, including the company’s mobile app and back-of-house systems.

After training and construction are finished, you can begin designing your store – complete with traditional Dunkin’ branding – as well as hiring and training staff. Dunkin’ owns and operates an online shop where you are able to download brand-approved materials, marketing programs for your local store and other resources.

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