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Report Generated: April 01, 2026 Data Source: Official FDD Filing (2025)
See full cost breakdown →

Hurts Donut Company Franchise: Cost, Earnings & Real FDD Data

Bakery

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 →

48.0
Below Average
N/A
Total Units
$1.54M
Median Revenue
$504K – $825K
Total Investment
7.0%
Royalty Rate
$170K
Est. Profit
5.6%
Closure Rate

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.

Key Takeaways

Investment Payback
At median revenue of $1.54M, payback on $504K–$825K investment in ~0.4 years
Growth Signal
Net -4 units over 3 years (declining)
Fee Burden
Royalty + ad fund = 9.0% of gross sales, vs 8.1% category average
Financial Disclosure
This brand discloses financial performance data (Item 19)

Deal Breakers 2 flags detected

Critical issues identified from FDD analysis that warrant serious consideration before investing.

System Shrinking by 21%
The franchise went from 19 to 15 units — a net loss of 4 locations. A shrinking system may indicate franchisee dissatisfaction, poor unit economics, or brand decline.
Question to ask the franchisor:
What is driving the unit losses? Are closures voluntary or forced? What is the company doing to reverse the trend?
Closure Rate of 5.6%
An average of 5.6% of franchise units close each year. The industry average is around 2-3%. High closure rates often signal poor unit-level economics.
Question to ask the franchisor:
What are the primary reasons franchisees close? What support does the franchisor provide to struggling units?

Franchise Breakdown Score 48.0/100 · Below Average

Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.

Unit Growth
3/20
Stability
3/20
Investment Efficiency
20/20
Fee Reasonableness
8/15
Transparency
10/10
System Size
4/15

1 How Much Does a Hurts Donut Company Franchise Cost? FDD Item 7

Estimated initial investment range as disclosed in the most recent FDD.

Total Estimated Investment
$504K -- $825K
Midpoint
$664K

Related Franchise Investments:

View detailed breakdown table
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

2 Fee Structure FDD Items 5 & 6

Ongoing fees as disclosed in the FDD.

Royalty
0% Avg 5.6% 15%
7.0%
Ad Fund
0% Avg 2.4% 8%
2.0%

Core Recurring Fees

Royalty (Gross Revenues)
7.0% weekly
Marketing Royalty (Gross Revenues)
2.0% weekly

Other Recurring Fees

Support Fee and Help Line Fee (Per hour)
$80 weekly
Secret Shopper Report Fee (Monthly)
$80 monthly
Miscellaneous Non-Compliance Fee (Monthly until rectified)
$250 monthly

One-Time & Situational Fees

Training Fee $10,000
Relocation Fee $2,000
Resale Fee $17,500
Interest and Late Fee 18.0%
Improper use of Trademark, Brand materials, or IP Fee $1,000
Unauthorized Use of Product/Supplier Fee $1,000
Non-Use of Required Products or Services Fee $1,000
Unauthorized Packaging Fee $1,000
+ 14 more situational fees
Audit Costs Variable
Additional Assistance Fee Variable
Continuing Education Fee Variable
Artwork Fee $500
Store Uncleanliness Fee $250
Non-Compliance with Documentation Requests Fee $250
Poor Product Quality Fee $250
Failure to Meet Deadlines to Utilize New Equipment, products, processes $250
Hygiene/Dress Code Violation Fee $250
Health or Safety Violation Fee $250
Sales, excise, or gross receipts tax Variable
Third party charges that we specify or incur on your behalf Variable
Indemnification Variable
Attorney Fees Variable
View complete fee table (27 items)
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

3 Hurts Donut Company Franchise Revenue & Earnings (Item 19) Item 19 Available FDD Item 19

Financial performance data as disclosed in FDD Item 19.

$1.16M
Average Revenue
$1.10M
Median Revenue
$2.85M
Highest
$566K
Lowest
View all disclosed financial metrics (7 rows)
FPR #1- Gross Revenue for Company Stores 2024 (3 rows)
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
FPR #2-Average Gross Revenues- Franchised Outlets 2024 (4 rows)
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 Unit Profitability Industry Benchmark Estimate

Estimated using industry benchmarks for the Bakery category. Actual costs vary significantly by location, operator, and market.

$1.54M
Gross Revenue
$1.37M
Total Costs
$170K
Owner's Profit (11.0%)
25.6%
Annual ROI on Investment
View detailed P&L breakdown
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%

Investment Calculator Interactive

Model your personal financial scenario by adjusting the assumptions below.

Annual Revenue
Operating Margin
Initial Investment
Loan Percentage
Gross Revenue
Royalty + Ad Fund
Operating Profit
Annual Loan Payment
Net Annual Cash Flow
Payback Period
5-Year Total Return
Break-Even Monthly Rev
This calculator is for illustrative purposes only. Actual results will vary based on location, management, market conditions, and other factors. Always consult with a financial advisor and franchise attorney before making investment decisions.

4 Risk Assessment

Automated risk indicators based on FDD data analysis.

!
High Closure Rate
Average closure rate of 5.6% exceeds 5% threshold. This indicates higher-than-typical franchise turnover.
Declining Unit Count
Net -4 units over 3 years (-21.1%). The franchise system is contracting.
$
Quick Payback
Estimated ~0.4 year payback on investment at median revenue.
%
Reasonable Fee Burden
Combined royalty + ad fund of 9.0% is within normal range.
Financial Data Disclosed
This franchisor provides Item 19 financial performance representations, enabling better due diligence.

5 Hurts Donut Company Failure Rate & Unit Growth (Item 20) FDD Item 20

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% --
5.6%
Avg Closure Rate
3
Years of Data

6 Category Comparison Bakery Brands

How Hurts Donut Company compares to peer brands in the Bakery category.

Investment Midpoint

Median Revenue (Item 19)

Investment-to-Revenue Ratio

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 Loan Data 2016–2019

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.

$5M
Total SBA Approved
16
SBA Loans
$304K
Avg Loan Size
46.2%
Default Rate
Active Lending States 7
Distinct Lenders 8
Jobs Supported 620
Top Lending States
MO 5 OK 3 TX 2 NE 2 CO 2
Annual SBA Loan Volume

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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