10/10

Franchimp Summary Rating

10 /10
Lower than 9% of peers

Franchise Summary

Company Background
The Donut Connection Cooperative Corporation is a cooperative of baker-retailers who operate retail outlets for the sale of donuts and related food items. The Company operates as a purchasing cooperative, which means that Members purchase their goods at wholesale prices from the Company rather than from individual suppliers. As an association, the Company promotes the general welfare of its Members by providing services to them including supplying needed equipment and supplies to shops; negotiating volume discounts with suppliers; buying ingredients in bulk quantities for resale to shops; developing recipes, training programs, marketing materials and other resources for Member use; assisting with local zoning matters affecting Member businesses; publishing information about doughnut consumption trends in North America.
Franchise Opportunity
The Company has been in existence for over 25 years and during that time the industry of donut production and sales has changed dramatically. The industry of donuts is a highly competitive one with numerous producers and retailers. In order to be successful, the Company must adapt to these changes. The Company will continue to exist as a cooperative corporation and will work to provide Members with the resources they need in order to remain competitive in the industry. This will include access to new recipes, marketing materials, and other tools that will help shops sell more donuts.

Distribution of Donut Connection Franchisees

Donut Connection Franchise System Development in 2016

Historical Donut Connection System Growth

FAQ

How much investment do I need to start my own Donut Connection business?
Franchisees typically require at least $34,770 to $95,643 investment to get their Donut Connection business started
What are the initial franchise fees for Donut Connection?
Franchisees typically need to pay at least $500 in fees directly to Donut Connection in order to earn the right to launch their business
How much money can I make with a Donut Connection franchise? What are the average revenues for a typical Donut Connection business?
We haven’t done the math on how much revenue a typical Donut Connection brings in each year. We estimate that other franchisees in the Professional Services industry generate $932,459 revenue, so we would expect Donut Connection to generate a similar amount
How long do I need to commit to running a Donut Connection unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

10 /10
The Franchisor's investment costs ranges from $19,500 to $62,000 which is Much Lower than the $0 to $0 average in the Business-Related industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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