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Southern Maid Donuts

Company Information

3615 CAVALIER DRIVE, GARLAND, TEXAS 75042-7504

[email protected]

To simplify the language in this franchise disclosure document “Southern Maid” means Southern Maid Donuts, Inc , the franchisor “You” me2ms the person who buys the franchise Southern Maid is a Texas corporation formed on August 14, 2012 Its affiliate and predecessor. Southern Maid Donut Flour Co, was origmally established as a proprietorship m 1937, incorporated on August 31, 1959, and operated as franchisor until September 2012 Southern Maid does business as Southern Maid Donuts, Inc, Southern Maid Donuts and Southern Maid Southern Maid’s principal business address is 3615 Cavalier Drive, Garland, Texas 75042

Not Available

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

4/10

Investment Accessibility

4/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Southern Maid Donuts Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: N.A Maximum: N.A

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $64,500 Maximum: $234,500

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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