Duck Donuts Franchise Startup Cost, Profit Margin, Revenue and Locations

What is Duck Donuts? The Duck Donuts franchise got its name from Duck, a town in North Carolina. Founded by Russell A. Digilio and Robin Griffith, Duck Donuts was only a whim of its founders which later translated to reality with the first Duck Donuts outlet opening in 2006.

If you are interested in buying a unique pastry franchise, then you may want to consider the Duck Donuts option. This article will include the basic information required.

Franchise Reviews and Locations

Duck Donuts is a food and beverage coffee house franchise established in 2006. Since it was founded, it has blossomed into a major enterprise with over 100 locations spread across the United States and growing.

Read: Dunkin’ Donuts Franchise Cost

Duck Donuts makes its unique donuts from scratch in the presence of its customers. This has made its donuts to be always fresh and a delight for many.

Its other products include iced beverages, hot beverages, sandwiches, soft drinks, and desserts. In 2017, the company realized revenue in excess of $32 million. Its headquarters is located at 6230, Carlisle Pike, Hampden Township, Pennsylvania.

Why Choose Duck Donuts?

A lot of factors influence people to invest in a business or company. The positive factors are those that increase the likelihood of making a profit. In the case of Duck Donuts franchise, its steady growth over the past 10 years is a testament to its ability to make your investments viable. The support franchisees get in every area of their business is also an incentive.

Some of these areas of support include marketing, real estate, training and operations. These are all very important to running a successful business. It makes its ownership process quite easy to ensure that prospective franchisees are not overwhelmed by stress during the application process.

Support

Although this was briefly mentioned earlier, it is necessary to explain this further in this section. Owning a Duck Donuts franchise is not enough. The franchisee needs guidance and support all through the ownership tenure, and especially during the early stages of the business. Support is offered under three main categories; the real estate, operations/training as well as marketing categories.

  • Real Estate

The real estate support provided by Duck Donuts is led by a team of experts. These experts offer assistance in various ways, including helping out in negotiating and securing all lease or sale terms for your outlet.

  • Operations and Training Team

The team of experts involved here ensure that the franchisee receives the best training possible. This includes operation instructions provided through detailed training procedures that involve hands-on training

  • Marketing Team

This is a vital aspect of the business that ensures that your products and services receive as much exposure as required. They help franchisees to organise their marketing campaigns in a way that conveys the right message to its intended target market.

Financial Requirements

Becoming a Duck Donuts franchisee requires that you meet every requirement under this step. Prospective franchisees are required to have liquid assets of at least $150,000. This is in addition to a net-worth of $500,000. Duck Donuts franchise charges a franchise fee of $30,000 for each location. However, franchisees with multiple units get a discount.

The ongoing royalty fee is made up of 5% of gross sales. The initial investment sum to be paid depends on your location. This ranges from $300,000 to $450,000 and includes costs like initial advertising, equipment, signage, construction costs as well as the franchise fee. An average Duck Donuts store falls within 1,200 to 1,500 square feet.

What Duck Donuts Looks Out for in its Franchisees

Every franchisor wants its business to be handled by competent hands. This applies to Duck Donuts as well. Its carefully selected franchisees have helped in achieving sales revenue of $32 million from 44 outlets in 2017! First, an important requirement is having the requisite business experience. This makes it easier to succeed with its franchise.

Also, franchisees must be able and willing to connect with their local communities. Being part of a community and actively engaging with the community increases your chances of qualifying as its franchisee.

The Application Process

Applying for a Duck Donuts franchise involves several steps. First, you need to complete and submit an online application form. You can find this on https://duckdonuts.franconnect.net/fc/extforms/leadpage.jsp. After submitting the application form, this is reviewed by the franchisor. Qualified candidates are contacted and a phone interview scheduled accordingly.

You are presented with a Duck Donuts Franchise Disclosure Document FDD after satisfactorily completing the phone interview. After going through the FDD, a second phone interview is scheduled. This is followed by an in-person interview at its corporate office. Background and financial checks are carried out before this interview is conducted.

Your application process is finalized after completing the in-person interview, and a team in charge of real estate from the franchisor helps with negotiating and securing lease terms. The store concept, drawing and construction begin immediately while you undergo an in-store and classroom trainings. The training process is held at its corporate office, and Duck Donuts store situated at Mechanicsburg Pennsylvania.

Duck Donut’s marketing team provides marketing support. This is in addition to public relations guidance while assisting with pre-opening training for your workforce. This is the final step before your Duck Donut franchise store finally opens for business.

Read: Krispy Kreme Franchise Information

These are the basic application processes required for owning a Duck Donut franchise. Prospective franchisees are expected to adhere to each without fail. It is also important that you have the necessary experience in running a business, as this will be used in evaluating whether you qualify to apply.