Are you tired of too expensive companies that do not deliver excellent quality? Or you’re a Shiply’s Do-Nuts shopper and need to see before you can decide on buying how much would it cost to open a store? How much does it cost to invest in a  Shipley’s Do-Nuts franchise? You can start by looking at the franchise fee of $40k. That’s not bad at all.

On top of that, however, you’ll be required to pay a registration fee, and you must have an active bank account to get approved for the franchise. Opening a Shipley Do-Nuts is not as easy as one might think. Yet, the rewards are sweet! The Shipley Do-Nuts franchise is a trendy item with over 60 years in business. It is a very successful franchise that has been in business for a long time when Lawrence Shipley started selling glazed doughnuts from his mother’s kitchen. The first store was opened in Houston, Texas.

Cost To Open A Shipley Do-Nuts Franchise                         

Shipley Do-Nuts is one of America’s most beloved brands. The Texas-based company has been serving some of the best donuts and kolaches since 1936. Shipley Do-Nuts is also one of America’s fastest-growing franchises, with over 300 stores open or under construction in 21 states. They offer an exciting and unique franchise opportunity that requires no experience in the donut business or food industry. Also, you will be provided with extensive training and support to help you succeed as a Shipley’s franchisee.

According to their website, the initial franchise fee is $40k, with around $150k-200k charged for store types of equipment. Please note that this does not include the cost of real estate or leasehold improvements. So these costs will need to be added to your initial investment amount. You will also need an additional $10,000 for the required working capital and additional funds for inventory and supplies, around $7.5k to 15k. These figures represent a single-unit franchise agreement and do not include multi-unit agreements.

 Find below the costs of opening a Shipley franchise :

  • Net-worth Requirement $150,000
  • Liquid Cash Requirement $60,000
  • Initial Franchise Fee $40k
  • Monthly local marketing 3% of gross sales 
  • Monthly royalty of 5% of the gross sale 
  • Initial advertising $5-7k
  • Working capital for three months $50-150k
  • Leasehold improvement $150-250k
  • Store equipment $150-200k

It is pretty easy to find out most of the costs for opening a store because Shipley’s has a vested interest in helping you unlock your franchise. They will provide you with the Franchise Disclosure Document (FDD), which contains all relevant information needed to make an informed decision.

There are two different ways to open a store:

  • The “Traditional Franchise” – For this option, you would lease an existing space that has been allocated by Shipley’s to become a franchise store. This option has more strict requirements concerning location. This option is often described as being more viable for those with multi-unit operations experience. 
  • The space must be between 1200 – 1500 square feet and fit their requirements for location, signage, etc. 
  • You will be required to sign a 10-year lease with five-year renewal options and no control over renewal rent increases.
  • Total Investment: $272,000 – $913,100
  • Franchise Fee: $30,000
  • The royalty fee for this option starts at 7% for the first six months and then increases in increments of 1% each year 
  • The “Express Franchise” – This option is much more flexible in the type of location you can open, including stand-alone stores, kiosks, and even mobile units!
  • Total Investment: $241,000 – $426,600
  • Franchise Fee: $25,000
  • There is a tiered royalty fee structure that applies to this option. The first six months of operation require 8% royalties on sales. For months 7-12, the royalty fee increases to 9% and then 10% for the final months of your agreement. There is also a marketing fee of 1%.

What Type of Training Will do I Receive?

Shipley’s Do-Nuts offers an intensive initial training course covering all aspects of running your store successfully. The school is held for five days at their corporate headquarters in Houston, TX. This training involves classroom sessions and practical hands-on experience in their onsite training store. The initial fees for training are included in your franchise fees; however, any travel or accommodations associated with traveling to Houston to attend the training will be at your own expense.

Opening your own Shipley’s Do-Nuts is alluring, especially if you’re looking to make a change in your life. It can be a lucrative venture, and the fun community atmosphere is an excellent substitute for the more established corporate world many young professionals are used to. However, it is essential to remember that every business venture takes some work. You will unlikely see a considerable return in just a few months from opening a Shipley’s location in your town. But why not pursue entrepreneurial endeavors? Why not try something new and different? After all, there’s no guarantee that you will get another chance at it. So if you are interested in pursuing this opportunity, don’t hesitate to get in touch with Shipley’s team today! They would love to assist you in making these dreams of entrepreneurship come true!

By Manali