Shipley Do-Nuts Franchise FDD, Profits & Costs (2025)
Shipley Do-Nuts was founded in 1936 by Lawrence Shipley in Houston, Texas. The first donuts, made from a unique recipe, were crafted in Shipley’s home kitchen.
These gourmet donuts quickly became popular. The company remains headquartered in Houston and is known for its freshly baked donuts and kolaches, made daily.
In 1987, Shipley Do-Nuts began franchising, growing to over 340 locations across the U.S. The franchise stands out with its commitment to freshness, offering a variety of classic and specialty donuts. Its signature kolaches reflect the brand’s Texas heritage.
Shipley Do-Nuts continues expanding and seeks franchisees nationwide. The brand is celebrated for its consistency, high quality, and local approach. Franchisees receive extensive training and support to ensure every store maintains the company’s long-standing standards.
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Initial Investment
How much does it cost to start a Shipley Do-Nuts franchise? It costs on average between $426,000 – $1,029,000 to start a Shipley Do-Nuts franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount (Low – High) |
|---|---|
| Initial Franchise Fee | $40,000 – $40,000 |
| Travel and Living Expenses While Training | $1,000 – $10,000 |
| Lease Deposits/Payments | $8,400 – $20,000 |
| Equipment, Furnishings, Technology, POS | $130,000 – $200,000 |
| Leasehold Improvements | $213,000 – $500,000 |
| Signage | $20,000 – $125,000 |
| Opening Inventory – Food Items | $20,000 – $30,000 |
| Opening Inventory – Non-Food Items | $1,500 – $3,000 |
| Grand Opening Advertising Campaign | $20,000 – $20,000 |
| Utility and Other Security Deposits | $2,500 – $5,500 |
| Insurance | $1,000 – $2,000 |
| Architectural/Legal | $13,000 – $30,000 |
| Business Licenses/Permits | $1,000 – $3,500 |
| Additional Funds/Working Capital (3 months) | $25,000 – $40,000 |
| TOTAL | $496,400 – $1,029,000 |
Average Revenue (AUV)
How much revenue can you make with a Shipley Do-Nuts franchise? A Shipley Do-Nuts franchised store makes on average $830,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $811,000 yearly revenue for similar donut shop franchises. Below are a few Shipley Do-Nuts competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Shipley Do-Nuts Franchise Disclosure Document
Frequently Asked Questions
How many Shipley Do-Nuts locations are there?
As of 2024, there are 374 Shipley Do-Nuts locations spread across 12 states in the U.S. The franchise is particularly dominant in Texas, where it operates 310 locations, accounting for over 83% of its total presence.
What is the total investment required to open a Shipley Do-Nuts franchise?
The total investment required to open a Shipley Do-Nuts franchise ranges from $496,000 to $1,029,000.
What are the ongoing fees for a Shipley Do-Nuts franchise?
For a Shipley Do-Nuts franchise, ongoing fees include a royalty fee of 5% of gross sales. This fee is charged on a regular basis to support the overall brand operations and provide franchisees with continued access to the company’s proprietary systems, products, and trademarks. Additionally, franchisees are required to contribute to a marketing fee, which is 2% of gross sales.
What are the financial requirements to become a Shipley Do-Nuts franchisee?
to become a Shipley Do-Nuts franchisee, there are specific financial requirements that must be met. Prospective franchisees are required to have a minimum net worth of $1.5 million. Additionally, they must possess at least $600,000 in liquid capital.
How much can a Shipley Do-Nuts franchise owner expect to earn?
The average gross sales for a Shipley Do-Nuts franchise are approximately $0.83 million per location. Assuming a 15% operating profit margin, $0.83 million yearly revenue can result in $125,000 EBITDA annually.
Who owns Shipley Do-Nuts?
Shipley Do-Nuts is owned by Peak Rock Capital, a private equity firm that acquired a majority stake in the company in 2021. This acquisition has allowed Shipley Do-Nuts to focus on modernizing its operations and expanding its footprint, while maintaining its strong brand heritage.
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