Frequently asked questions
Get answers to commonly asked questions about franchising a Shipley Do-Nuts business
FAQs
Why choose Shipley Do-Nuts as a business opportunity?
Owning a Shipley Do-Nuts franchise means you’re in business for yourself, but not by yourself. Our dedicated leadership and support teams are committed to your success. As a franchisee, you’ll benefit from an established brand, a loyal customer base, and a menu of delicious donuts and kolaches. With best-in-class unit-level economics and a proven operating system, Shipley Do-Nuts is a compelling opportunity.
What are the start-up costs for opening a Shipley Do-Nuts franchise?
The initial investment required to open a Shipley Do-Nuts franchise ranges from $496,400 to $1,029,000 per store, depending on location and market conditions. This estimate excludes real estate costs.
What are the financial requirements to buy a Shipley Do-Nuts franchise?
To qualify as a franchisee, you’ll need:
- A credit score of 700 or higher
- A minimum net worth of $750,000
- Minimum liquid assets of $225,000
These financial qualifications can be met individually or through a partnership.
Am I the right candidate to open a Shipley Do-Nuts franchise?
The ideal Shipley Do-Nuts franchisee is someone with an entrepreneurial spirit, a passion for community involvement, and the drive to build strong relationships with local businesses and organizations. Candidates should meet the financial requirements, have experience in multi-unit restaurant, retail, or hospitality operations, and the infrastructure and resources to meet your development schedule.
What support does Shipley Do-Nuts provide?
From the moment you sign your development agreement, our team will assist you with real estate site selection, construction project management, and pre-opening planning. You (or your operations leader) will attend a comprehensive six-week training program in Houston at a corporate-owned shop before opening your first shop. Additionally, our training team will be on-site to support your grand opening.
Our marketing team will help you develop a grand opening plan, including point-of-sale materials, social media campaigns, and local marketing strategies. After your shop opens, a Franchise Business Consultant (FBC) will work closely with you to optimize your operations and drive success.
Where is Shipley Do-Nuts looking to grow?
We offer franchise opportunities across the U.S. for both single and multi-shop development agreements. Ask about special incentives for aggressive development agreements in markets outside of Texas.
What are the franchise fees, royalties, and advertising costs?
- Royalty fee: 5%
- Regional marketing co-op: 1%
- Local Store marketing: 2% (this is an ongoing required investment by each franchise owner, but not collected by Shipley Franchise Company)
What is the return on investment?
While we cannot guarantee specific financial results, our Franchise Disclosure Document (FDD) includes Item 19, which provides financial performance information for existing Shipley Do-Nuts shops.
Can I open a single unit, or do I need to commit to multiple locations?
While we prefer franchisees interested in multi-shop development, we do consider single shop development in select markets.
Can I purchase a development territory?
Yes, we offer multi-shop development agreements, allowing you to secure and develop a specific territory.
Does Shipley Do-Nuts provide financing?
Shipley Do-Nuts does not offer direct financing, but we have established relationships with qualified lenders who can assist with your financing needs.
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