Whether you’re 10 years away from retirement age or if you’re an investor looking to build something more from the ground up, the Dunkin’ franchise is one of the most challenging but rewarding investments you can make. The International Franchise Professionals Group (IFPG) is a membership-based franchise consulting network that works to help investors realise their goals. Here, we lay out some of the frequently asked questions about investing in the Dunkin’ franchise.
What investments would you need to make to open a Dunkin’ franchise?
Opening a Dunkin’ franchise is capital-intensive, and investors will need to have significant net worth in order to secure the franchise and capital to make the initial investments. Specifically, investors will need to have liquid capital of at least $250,000 and a total net worth of at least $500,000. This is due to the total investment costs for a Dunkin’ franchise falling in the range of $235,000 to $1.7 million, with the total cost depending on the particular store you are opening and its location. Further, most franchisees agree to personal guarantees to cover additional investments after the initial capital investment has been secured.
What type of ongoing support can I expect?
Investing in a Dunkin’ franchise will entitle you to enjoy an array of ongoing support services. These services include a 24/7 field operations team to ensure that your daily operations go smoothly and are up to the highest standards, as well as comprehensive marketing and public relations support to generate awareness. In addition, the franchise’s head office also provides training for all new franchisees in areas like customer service, store operations, marketing, and more. Finally, also enjoy ongoing operational support such as menu development, co-op advertising, product testing and reviews, and communication with potential customers,
Are there any franchising fees to be aware of?
Yes, when you invest in a Dunkin’ franchise, there are several fees to keep in mind. These fees include an initial franchise fee of $40,000 which is due at signing, a 5 percent royalty fee of an ongoing gross sales to be paid to the franchisor, as well as an advertising fee of up to 4 percent. There are also additional fees, such as a cooperative advertising fee, a grand opening fee, and a local store marketing assessment fee, and all of these fees are subject to change and should be thoroughly discussed with the franchisor prior to making any investments.
What is the best way to get started?
The best way to get started in investing in a Dunkin’ franchise is to do your homework. Do your research beforehand to ensure that you understand the investment costs associated with the franchise and are aware of the support system that will be provided to you. Once you are knowledgeable of the investment requirements, it is important to reach out to the franchisor so that you are able to have all of your questions answered. Finally, once you have done your research and gained a thorough understanding of the process, you should meet with a franchise consultant from the International Franchise Professionals Group (IFPG) to go over your options and develop the best plan of action for you.
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