If you’ve been considering joining the ranks of franchisees in the booming foodservice industry, Dunkin’ is a popular option. As you explore the opportunities presented by owning a Dunkin’ franchise, you may have a few questions that need to be answered. Here are some of the most commonly asked questions about Dunkin’ franchises.
What Types of Franchises Does Dunkin’ Offer?
Dunkin’ offers a variety of franchise models to accommodate differing business needs. The main franchise option is a traditional Dunkin’ store with the iconic presence that customers recognize. This model may be free-standing or located inside of other businesses such as malls or gas stations. Dunkin’ also offers a co-branded store franchise option with either Auntie Anne’s or Baskin-Robbins. With a co-branded store, you can offer customers the dual opportunities of enjoying the classic flavors of both restaurants in one location.
Which Locations Qualify for Dunkin’ Franchises?
It is best to work with a franchise consultant to determine the site criteria that will best fit your desired location for a Dunkin’ franchise. Location criteria may include a minimum population within a 2 to 3 mile radius as well as other metrics such as average household income which can provide insight into potential customer activity. Dunkin’ also offers the opportunity to operate a franchise in a non-traditional location such as airports, universities and hospitals.
Are There Any Specific Requirements to Own a Dunkin’ Franchise?
Yes, Dunkin’ has established specific requirements for their franchisees in order to set the highest standards for product quality, service and customer satisfaction. All Dunkin’ franchisees must complete a background check prior to being approved and must have a minimum net worth option of $500,000 dollars. Additionally, Dunkin’ requires potential franchisees to have the financial resources necessary to open and operate the establishment.
How Much Does a Dunkin’ Franchise Cost?
The costs to become a Dunkin’ franchisee vary depending on the type of franchise location. Some of the typical investments associated with a traditional Dunkin’ franchise include an initial franchise fee of $40,000, an advertising fee of 6.5% plus up to 0.5%, and an ongoing royalty fee of 6.5%. With a co-branded Dunkin’ and Baskin-Robbins franchise the initial franchise fee is $100,000 — and the ongoing royalty fee is 8.5%.
What is Dunkin’s Franchise Agreement Terms?
The typical Dunkin’ franchise agreement is for an initial term of twenty (20) years and two (2) five (5) year renewal option periods. This effectively creates a potential term length of thirty (30) years. All franchise agreements are subject to terms of local, state and federal regulations.
What Types of Support Will Dunkin’ Provide for Franchisees?
Dunkin’ is committed to providing comprehensive resources and support to its franchisees. All franchisees are eligible to receive training in store operations, marketing, and customer service, and are provided access to a dedicated Dunkin’ franchisor hotline for any inquiries. Team-Today!, Dunkin’s national franchise business conference, is an event offering opportunities to network with some of their most successful franchisees.
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