Hurts Donut Company operates a franchise serving gourmet donuts with creative flavors and premium ingredients. The brand focuses on freshly made donuts and an inviting cafe atmosphere for customers.
Springfield, MO · Founded 2015 · Franchising since 2015 · hurtsdonuts.com →
The Hurts Donut Company franchise requires a total investment of $504K – $825K with a 7.0% royalty fee in the Bakery category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Hurts Donut Company.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
Related Franchise Investments:
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Real Estate | $10,000 | $15,000 |
| Training | $10,000 | $10,000 |
| Buildout | $200,000 | $350,000 |
| Other | $6,000 | $15,000 |
| Inventory | $40,000 | $70,000 |
| Equipment | $125,000 | $175,000 |
| Equipment | $9,000 | $12,000 |
| Technology | $4,000 | $11,000 |
| Equipment | $1,000 | $5,000 |
| Other | $10,000 | $15,000 |
| Signage | $15,000 | $40,000 |
| Insurance | $7,000 | $12,000 |
| Training | $2,000 | $5,000 |
| Inventory | $25,000 | $35,000 |
| Working Capital | $5,000 | $20,000 |
| Total | $504,000 | $825,000 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty | 7.0% | PCT | Gross Revenues | weekly |
| Marketing Royalty | 2.0% | PCT | Gross Revenues | weekly |
| Support Fee and Help Line Fee | $80 | FIXED | Per hour | weekly |
| Secret Shopper Report Fee | $80 | FIXED | Monthly | monthly |
| Training Fee | $10,000 | FIXED | One-time upon completion | one_time |
| Relocation Fee | $2,000 | FIXED | Per relocation | one_time |
| Resale Fee | $17,500 | FIXED | Per transfer | one_time |
| Audit Costs | N/A | VARIABLE | Actual expenses | one_time |
| Interest and Late Fee | 18.0% | PCT | Late payments | one_time |
| Additional Assistance Fee | N/A | VARIABLE | Per then-current fee schedule plus per diem, travel, and living expenses | one_time |
| Continuing Education Fee | N/A | VARIABLE | Actual costs | one_time |
| Artwork Fee | $500 | FIXED | Per vehicle wrap authorization | one_time |
| Store Uncleanliness Fee | $250 | FIXED | Per occurrence | one_time |
| Non-Compliance with Documentation Requests Fee | $250 | FIXED | Per occurrence | one_time |
| Improper use of Trademark, Brand materials, or IP Fee | $1,000 | FIXED | Per occurrence | one_time |
| Unauthorized Use of Product/Supplier Fee | $1,000 | FIXED | Per occurrence | one_time |
| Non-Use of Required Products or Services Fee | $1,000 | FIXED | Per occurrence | one_time |
| Unauthorized Packaging Fee | $1,000 | FIXED | Per occurrence | one_time |
| Poor Product Quality Fee | $250 | FIXED | Per occurrence | one_time |
| Failure to Meet Deadlines to Utilize New Equipment, products, processes | $250 | FIXED | Per occurrence | one_time |
| Hygiene/Dress Code Violation Fee | $250 | FIXED | Per occurrence | one_time |
| Health or Safety Violation Fee | $250 | FIXED | Per occurrence | one_time |
| Miscellaneous Non-Compliance Fee | $250 | FIXED | Monthly until rectified | monthly |
| Sales, excise, or gross receipts tax | N/A | VARIABLE | Actual amount incurred | one_time |
| Third party charges that we specify or incur on your behalf | N/A | VARIABLE | Actual amount incurred | one_time |
| Indemnification | N/A | VARIABLE | Actual costs and damages | one_time |
| Attorney Fees | N/A | VARIABLE | Actual costs and fees | one_time |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Gross Revenue | $1,544,099 | USD | -- | 2024 |
| Less Royalties (7%) and Advertising Royalties (2%) as if a Franchised Outlet | $-138,969 | USD | -- | 2024 |
| Adjusted Gross Revenue as if a Franchised Outlet | $1,405,130 | USD | -- | 2024 |
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Gross Revenue | $1,158,813 | USD | -- | 2024 |
| Median Gross Revenues | $1,100,988 | USD | -- | 2024 |
| Highest Gross Revenues | $2,850,207 | USD | -- | 2024 |
| Lowest Gross Revenues | $566,308 | USD | -- | 2024 |
Estimated using industry benchmarks for the Bakery category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $1,544,099 | 100% |
| COGS | $-386,025 | 25% |
| Labor | $-463,230 | 30% |
| Occupancy | $-154,410 | 10% |
| Marketing | $-77,205 | 5% |
| Other Costs | $-154,410 | 10% |
| Royalty Fee (franchisor) | $-108,087 | 7.0% |
| Ad Fund Fee (franchisor) | $-30,882 | 2.0% |
| Owner's Profit | $169,851 | 11.0% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 19 | -- | -- | 0 | 18 | -- | -- |
| 2023 | 18 | -- | -- | 0 | 18 | -- | -- |
| 2024 | 18 | +1 | -3 | 1 | 15 | 16.7% | -- |
How Hurts Donut Company compares to peer brands in the Bakery category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Cinnabon | 1030 | $247K – $675K | $1.09M | 6.0% | 0.4x |
| Nothing Bundt Cakes | 643 | $667K – $906K | $1.35M | 6.0% | 0.6x |
| Duck Donuts | -- | $515K – $737K | No Item 19 | 6.0% | -- |
| Hurts Donut Company | -- | $504K – $825K | $1.54M | 7.0% | 0.4x |
| Shipley Do-Nuts | -- | $503K – $1.02M | $1.47M | 5.0% | 0.5x |
| Wetzel's Pretzels | -- | $183K – $712K | $826K | 7.0% | 0.5x |
| Paris Baguette | -- | $636K – $1.69M | $2.17M | 5.0% | 0.5x |
| Great Harvest | -- | $298K – $980K | $948K | 5.0% | 0.7x |
| Philly Pretzel Factory | -- | $170K – $264K | $675K | 6.0% | 0.3x |
| 85°C Bakery Cafe | -- | $2.69M – $3.24M | No Item 19 | 7.0% | -- |
SBA 7(a) loan approvals for Hurts Donut Company franchisees from the SBA FOIA public dataset. Lenders report franchise codes at origination — this is real lending activity, not estimates.
Source: SBA FOIA 7(a) public data. Franchise codes matched by brand name. Not all SBA loans are captured; some franchisees finance without SBA programs.
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