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Dunkin? Franchise: Answering Your Burning Questions

Are you tired of the corporate rat race? Are you interested in transitioning to business ownership? Investing in a franchise restaurant is a great way to make your dream of owning a business come true, but it’s important to understand the specifics of the franchise you’re interested in. As a potential Dunkin’ franchisee, you’re likely to have certain questions. Here we will answer some of the top questions about Dunkin’ franchises, so you can make informed decisions about investing in one.

What kind of financials are needed?

Dunkin’ franchisees must have minimum net worth and liquidity requirements, depending on their location and the kind of restaurant they plan to open. Those interested in a single-store franchise must have a minimum net worth of $750,000 and liquidity of $250,000. For multi-store franchise operations, minimum net worth and liquidity requirements may be different, depending on plan of operation.

How is the franchise agreement structured?

Dunkin’ franchises are structured as a 10-year renewable term agreement, with the initial term beginning when Dunkin’ signs a franchise contract. This initial term may be extended by Dunkin’ or the franchisee in the future. The franchisee is obligated to pay fees during the term of the agreement, including a one-time franchise fee, continuing royalties, advertising fees, and other fees detailed in the Franchise Disclosure Document.

How much does it cost to open a Dunkin’ franchise?

The total cost to open a Dunkin’ franchise may range from roughly $109,000 to $2,700,000 or more, including the franchise fee and various other startup costs. Major expenses to consider for the Dunkin’ franchise include property-related fees, equipment, professional fees, furniture and fixtures, signage, insurance, promotion expenses, and employees’ wages until the business can start operations.

What kind of areas can a Dunkin’ franchise be located in?

Dunkin’ franchises can be located in a variety of areas, including traditional shopping centers, lifestyle centers, regional malls, urban locations outside major city centers, and stand-alone sites. The Dunkin’ real estate team will help you assess new sites and determine their viability.

How is the site selection process for a Dunkin’?

The team at Dunkin’ will assess prospective sites and advise on their viability. The criteria for site selection include visibility, access, zoning restrictions, space requirements, population, traffic, and potential to generate revenue. The Dunkin’ team will focus on your goals and use market information, expertise, and technology to determine the best sites for you.

How much revenue per store does a Dunkin’ franchise generate?

At present, the average revenue per store for six-months ended December 2020 was $864,902. However, as with any other franchise, the revenue figure of each store may vary significantly depending on the location, operations, and other factors.

What kind of marketing and promotional support does Dunkin’ provide?

Dunkin’ provides continuous marketing and promotional support to its franchisees via advertising, public relations, online strategy, local store marketing, and more. With the centralized systems of the company, you’ll get access to an extensive selection of materials which will help your business become a success.

Topics:

Dunkin’ franchise,

Franchising,

Business Ownership

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