Duck Donuts Franchise FDD, Profits & Costs (2025)
Duck Donuts, a renowned name in the donut industry, is celebrated for its unique concept of “Warm, Delicious & Made-to-Order” donuts. The franchise embarked on its journey in the scenic Outer Banks of North Carolina, with the first store opening its doors in Duck and Kitty Hawk.
This humble beginning soon transformed into a global sensation, leading to Duck Donuts becoming an award-winning brand recognized for its innovative approach to donut making. The franchise took a significant step in 2013 by opening its first franchise location in Williamsburg, VA.
Headquartered in Mechanicsburg, Pennsylvania, Duck Donuts sets itself apart with a business model that emphasizes simplicity, growth potential, and ease of operation within a compact store layout.
This model has been designed to cater to various operational scenarios, including traditional stores, non-traditional locations, food trucks, and even catering services, offering franchisees multiple avenues for revenue.
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Initial Investment
How much does it cost to start a Duck Donuts franchise? It costs on average between $424,000 – $606,000 to start a Duck Donuts franchised restaurant.
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 |
|---|---|
| Initial Franchise Fee | $40,000 |
| Your Training Expenses | $0 – $2,500 |
| Premises Deposits | $2,500 – $4,500 |
| Professional Design | $6,000 – $15,000 |
| Leasehold Improvements | $240,000 – $350,000 |
| Signage | $7,800 – $13,500 |
| Furniture, Fixtures, Equipment | $110,000 – $137,000 |
| Computer Systems | $15,000 – $17,000 |
| Initial Inventory | $7,000 – $10,000 |
| Grand Opening Marketing | $12,500 – $15,000 |
| Professional Fees | $750 – $5,000 |
| Licenses and Permits | $100 – $2,000 |
| Insurance | $3,000 – $5,000 |
| Operating Expenses / Additional Funds – 3 months | $20,000 – $30,000 |
| TOTAL (excluding tenant allowance) | $464,650 – $646,500 |
| TOTAL PROJECT COST | $424,485 – $606,335 |
Average Revenue (AUV)
How much revenue can you make with a Duck Donuts franchise? A Duck Donuts franchised restaurant makes on average $570,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $788,000 yearly revenue for similar baked goods franchises. Below are 10 Duck Donuts 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.
Duck Donuts Franchise Disclosure Document
Frequently Asked Questions
How many Duck Donuts locations are there?
As of the latest data, Duck Donuts operates over 100 locations across the United States. However, the exact split between franchise-owned and company-owned locations is not publicly detailed.
This growing network has helped Duck Donuts establish a broad presence, offering franchisees a recognizable brand and opportunities to expand into new markets.
What is the total investment required to open a Duck Donuts franchise?
The total investment required to open a Duck Donuts franchise ranges from $424,000 to $606,000.
What are the ongoing fees for a Duck Donuts franchise?
Duck Donuts franchisees are required to pay an ongoing royalty fee of 5-6% on their gross sales. Additionally, there is a marketing fee that is 3-4% of gross sales.
This marketing fee is used to fund advertising and promotional activities to drive brand awareness and support franchise locations at both a national and local level.
What are the financial requirements to become a Duck Donuts franchisee?
To become a Duck Donuts franchisee, you must have a minimum net worth of $500,000. In addition, they must have a minimum of $150,000 in liquid capital.
These financial requirements ensure that franchisees have the necessary resources to support the initial investment, operations, and any unexpected costs associated with opening and running a Duck Donuts franchise.
How much can a Duck Donuts franchise owner expect to earn?
The average gross sales for a Duck Donuts franchise are approximately $0.57 million per location. Assuming a 15% operating profit margin, $0.57 million yearly revenue can result in $85,500 EBITDA annually.
Who owns Duck Donuts?
Duck Donuts is owned by NewSpring Franchise, which acquired a controlling interest in the company. The brand was founded by Russ DiGilio in 2007 in Duck, North Carolina, but has since grown and undergone ownership changes to support its expansion and franchising operations.
Disclaimer
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