How much does it cost to open a Hurts Donut Company franchise?

The total initial investment for a Hurts Donut Company franchise ranges from $504,000 to $825,000. This includes the franchise fee, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Hurts Donut Company franchise?

Hurts Donut Company franchisees pay a 7.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Hurts Donut Company franchise?

Based on Item 19 financial performance data, the median Hurts Donut Company franchise generates $1,544,099 in annual revenue. Estimated owner profit is approximately $169,851.

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Bakery

Hurts Donut Company Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$504,000 – $825,000

Franchise Fee

N/A

Royalty Rate

7.0%

Initial Investment Range

Low: $504,000 High: $825,000

The total initial investment to open a Hurts Donut Company franchise ranges from $504,000 to $825,000, as disclosed in their Franchise Disclosure Document.

Midpoint estimate: $664,500

Franchise Fee

Franchise fee data is not available.

Ongoing Fees

Royalty Fee

7.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty	7.0	PCT	Due every Monday. Gross Revenues defined as total amount of money or compensation received for all goods sold and services rendered from the location or in connection with the Trade Name or Marks, excluding sales tax, returned merchandise, and exempted items.
Marketing Royalty	2.0	PCT	Due each Monday. Not yet implemented but intended to be implemented in the future.
Support Fee and Help Line Fee	80.0	FIXED	Due each Monday. For operational support services.
Secret Shopper Report Fee	80.0	FIXED	For administration of the Secret Shopper Program and Reporting.
Training Fee	10000.0	FIXED	Payable upon completing the in-store portion of initial training.
Relocation Fee	2000.0	FIXED	Payable if franchisee seeks approval to relocate outlet in territory.
Resale Fee	17500.0	FIXED	Payable before resale if franchisee resells the franchise.
Audit Costs	N/A	VARIABLE	Payable if an audit reveals an underpayment of 3% or more or if re-inspection is required due to a failed store audit.
Interest and Late Fee	18.0	PCT	$100 plus 18% interest or the highest rate permitted by law, whichever is less. Payable on late payments.
Additional Assistance Fee	N/A	VARIABLE	Payable for additional assistance requested from franchisor.
Continuing Education Fee	N/A	VARIABLE	Payable if franchisor provides continuing education programs for franchisee or employees.
Artwork Fee	500.0	FIXED	Payable to affiliate if franchisor authorizes vehicle wrap by company other than Here's Your Sign, LLC.
Store Uncleanliness Fee	250.0	FIXED	Payable if franchisee fails a Front of House audit due to uncleanliness.
Non-Compliance with Documentation Requests Fee	250.0	FIXED	Payable if franchisee fails to provide documentation pursuant to the Franchise Agreement.
Improper use of Trademark, Brand materials, or IP Fee	1000.0	FIXED	Payable if franchisee improperly uses franchisor's trademark, brand materials, or intellectual property.
Unauthorized Use of Product/Supplier Fee	1000.0	FIXED	Payable if franchisee uses or provides products or services utilizing a product or supplier not approved by franchisor.
Non-Use of Required Products or Services Fee	1000.0	FIXED	Payable if franchisee fails to use or provide required products or services.
Unauthorized Packaging Fee	1000.0	FIXED	Payable if franchisee uses improper or unauthorized packaging for required products.
Poor Product Quality Fee	250.0	FIXED	Payable if during an audit, products fail to meet quality standards in the Operations Manual.
Failure to Meet Deadlines to Utilize New Equipment, products, processes	250.0	FIXED	Payable if franchisee fails to implement new equipment, products or processes by franchisor's deadline.
Hygiene/Dress Code Violation Fee	250.0	FIXED	Payable if during an audit, franchisee or employees fail to follow hygiene/dress code requirements.
Health or Safety Violation Fee	250.0	FIXED	Payable if franchisee fails a Back of House audit.
Miscellaneous Non-Compliance Fee	250.0	FIXED	Payable if franchisee fails to operate according to standards and processes outlined in the Operations Manual.
Sales, excise, or gross receipts tax	N/A	VARIABLE	Payable if required by federal, state or locality. Includes sales, excise or gross receipts tax on initial franchise fee, royalty, and other fees and costs.
Third party charges that we specify or incur on your behalf	N/A	VARIABLE	Reimbursement for third party charges incurred by franchisor on franchisee's behalf or specified third party vendor charges.
Indemnification	N/A	VARIABLE	Payable for expenses and liabilities franchisee causes franchisor to incur.
Attorney Fees	N/A	VARIABLE	If franchisor is the prevailing party in any litigation with franchisee, or franchisee sues an Area Representative, franchisee must reimburse costs and attorney fees.

What You Get

Financial Performance (Item 19)

Median Revenue

$1,544,099

per year, per location

Mean Revenue

$1,158,813

per year, per location

Profitability Estimate

Estimated Owner Profit

$169,851

per year

Profit Margin

11.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 3.9 years

Based on midpoint investment of $664,500 and estimated annual owner profit of $169,851.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

5.6%

Moderate risk — near industry average

Net Unit Growth

-4 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	19	—	—	—	18
2023	18	—	—	—	18
2024	18	+1	-3	—	15

Is a Hurts Donut Company Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Hurts Donut Company franchise opportunity:

Overall Score

48/100

Moderate opportunity

Est. Payback Period

3.9 yrs

Average payback

Risk Level

Medium

5.6% annual closure rate

Hurts Donut Company shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $1,544,099 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.