How much does it cost to open a Shipley Do-Nuts franchise?

The total initial investment for a Shipley Do-Nuts franchise ranges from $503,461 to $1,024,946. This includes the franchise fee of $40,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Shipley Do-Nuts franchise?

Shipley Do-Nuts franchisees pay a 5.0% 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 Shipley Do-Nuts franchise?

Based on Item 19 financial performance data, the median Shipley Do-Nuts franchise generates $849,273 in annual revenue. Estimated owner profit is approximately $174,101.

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Shipley Do-Nuts Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$503,461 – $1,024,946

Franchise Fee

$40,000

Royalty Rate

5.0%

Initial Investment Range

Low: $503,461 High: $1,024,946

The total initial investment to open a Shipley Do-Nuts franchise ranges from $503,461 to $1,024,946, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.

Midpoint estimate: $764,204

Franchise Fee

$40,000

One-time initial fee

The Shipley Do-Nuts franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Shipley Do-Nuts brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 7.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	5.0	PCT	5% of previous week's Gross Sales. Paid on or before Monday of each week. Franchisor has right to withdraw funds via EFT.
System Brand Fund Fee	1.0	PCT	1% of previous week's Gross Sales. Franchisor reserves right to increase at any time upon notice. Total Advertising Spend may be required up to 5% of weekly Gross Sales, allocated among Brand Fund, Regional Coop, and Local Advertising.
Regional Advertising Cooperative Contribution	1.0	PCT	1% of Gross Sales. Only applicable if regional cooperative exists or is established. May be increased upon majority vote of cooperative members. Franchisor-owned shops need not contribute.
Required Minimum Expenditure for Local Advertising and Promotion	2.0	PCT	2% of Gross Sales. Subject to change but subject to Total Advertising Spend cap. In addition to Grand Opening Advertising requirement.
Technology Fee	N/A	FIXED	Currently $0. When implemented, will not exceed $125 per week initially, but franchisor reserves right to increase at any time to account for third-party technology cost pass-throughs and CPI increases.
Insufficient Funds Fee	50.0	FIXED	$50 per occurrence, subject to state law. Payable each time franchisor attempts to debit bank account with insufficient funds.
Late Payment Fee	20.0	PCT	20% on overdue amounts, subject to state law. Applies to amounts not paid within 15 days of due date.
Interest	1.5	PCT	1.5% per month or maximum interest rate permitted by law, whichever is less. Applies to amounts not timely paid.
Non-Compliance Fee	500.0	FIXED	$500 per instance plus $500 for each week non-compliance remains uncured. In addition to (not in lieu of) all other rights and remedies.
Relocation Fee	10000.0	FIXED	$10,000 plus franchisor's actual reasonable costs. Requires written approval for new Shop location.
Delayed Opening Fee	500.0	FIXED	$500 per week for each week Shop opening is delayed. Franchisor may terminate immediately with no cure for failure to open, but may accept fee instead at sole discretion.
Financial Statement/Tax Return Late Fee	50.0	FIXED	$50 per month for each month financial statements and tax returns are overdue.
Management Fee	10.0	VARIABLE	Greater of (i) two times compensation paid to assigned individual(s) or (ii) 10% of weekly Gross Sales, plus reimbursement of expenses. Payable if franchisor must manage Shop due to jeopardy, default, absence, incapacity or illness.
Advertising and Promotional Materials Handling Fee	10.0	PCT	10% above actual cost of advertising and promotional materials. Payable when materials are requested and provided.
Franchisor Products and Services	N/A	VARIABLE	Variable pricing for required products, goods, supplies and services. Franchisor may earn profit on sales. See Note 2 for details.
Audit Fee	N/A	VARIABLE	Full cost of audit payable only if audit reveals understatement of 2% or more of Gross Sales. If understatement is 5% or more, franchisor can terminate. See Note 3 for details.
Renewal Fee	25.0	PCT	25% of then-current initial franchise fee. Due prior to renewal.
Transfer Fee	50.0	PCT	50% of then-current initial franchise fee plus reimbursement of actual costs of investigation of proposed transferee. Due prior to transfer.
Training Fee	2000.0	FIXED	$2,000 per substitute or additional trainee attending initial training program. Initial Operating Principal and Shop Manager training is free for first Shop.
Additional On-Site Training Fee	2000.0	FIXED	$2,000 per training representative per week plus reimbursement of actual expenses. Payable if on-site opening training exceeds 5-15 days for first Shop or if additional on-site training provided at franchisee request.
Ongoing Training Fee	2000.0	FIXED	$2,000 per week per trainee. Payable if franchisor develops additional training programs and requires attendance.
Annual Franchisee Meeting Fee	1500.0	FIXED	$1,500 per attendee. Franchisor may (but need not) hold annual meetings and reserves right to charge then-current attendance fees.
Insurance/Trade Account Fees	N/A	VARIABLE	Reimbursement of actual costs if franchisor purchases insurance on franchisee's behalf or pays trade accounts. Immediate repayment required.
Brand Payment Programs	N/A	VARIABLE	Variable fees for gift cards, loyalty programs, membership programs, customer incentive programs, online ordering, mobile applications. Franchisee responsible for expenses, technology and equipment.
Loyalty Program	110.0	FIXED	Currently $110 per month per Shop. Payable to third-party vendor (currently Paytronix). Subject to change.
Cost of Enforcement or Defense	N/A	VARIABLE	Reimbursement of all damages, costs, expenses including court costs and reasonable attorneys' fees if franchisor is prevailing party. See Note 4 for details.
Liquidated Damages	N/A	VARIABLE	Royalties for remainder of term calculated based on prior 12 months of Royalties paid or owed. Only due if franchisor terminates due to franchisee default.

What You Get

Financial Performance (Item 19)

Median Revenue

$849,273

per year, per location

Mean Revenue

$1,468,424

per year, per location

Profitability Estimate

Estimated Owner Profit

$174,101

per year

Profit Margin

20.5%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 4.4 years

Based on midpoint investment of $764,204 and estimated annual owner profit of $174,101.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

2.5%

Low risk — below industry average

Net Unit Growth

+26 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	329	—	—	—	326
2023	326	—	—	—	337
2024	337	—	—	—	355

Is a Shipley Do-Nuts Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Shipley Do-Nuts franchise opportunity:

Overall Score

73/100

Strong opportunity

Est. Payback Period

4.4 yrs

Average payback

Risk Level

Low

2.5% annual closure rate

Shipley Do-Nuts scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $849,273 and a combined fee burden of 7.0% 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.