Dunkin’ Donuts Franchise FDD, Profits & Costs (2025)
Dunkin’, founded in 1950 by William Rosenberg in Quincy, Massachusetts, originally started as “Open Kettle” before rebranding. The first franchise opened in 1955, and by 1965, Dunkin’ had over 100 locations.
Today, Dunkin’ operates more than 12,600 restaurants across 46 countries, making it a global leader in coffee and baked goods.
Headquartered in Canton, Massachusetts, Dunkin’ is known for its donuts, bagels, breakfast sandwiches, and a wide range of coffee options. The brand’s Dunkin’ Rewards program enhances customer loyalty by offering points on every purchase.
Dunkin’ has shifted its focus to becoming a beverage-led, on-the-go brand, introducing Cold Brew Coffee, Nitro Coffee, and unique products like Donut Fries.
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Initial Investment
It costs on average between $121,000 – $1,810,000 to start a Dunkin’ 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. Dunkin’ Donuts offers 5 types of franchises:
| Business Type | Initial Investment Range |
|---|---|
| Special Distribution Opportunities (SDO) | $121,400 to $904,600 |
| Gas & Convenience Restaurants | $210,900 to $1,038,100 |
| Shopping Center/Storefront | $437,500 to $1,310,500 |
| Freestanding | $526,900 to $1,809,500 |
We are summarizing below the main costs associated with opening a Freestanding Dunkin’ franchised restaurant. For more information on the costs required to start a Dunkin’ franchise, refer to the Franchise Disclosure Document (Item 7).
Freestanding Dunkin’ Restaurant
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee (20-year term) | $40,000 to $90,000 |
| Sub-total Initial Franchisee Fee | $40,000 to $90,000 |
| Building Costs | $180,000 to $600,000 |
| Site Development Costs | $13,000 to $350,000 |
| Additional Development Costs | $12,000 to $90,000 |
| Equipment, Fixtures & Signs | $189,000 to $300,000 |
| Restaurant Technology System | $65,000 to $95,000 |
| Licenses, Permits, Fees and Deposits | $3,500 to $7,500 |
| Sub-total Build Cost | $462,500 to $1,442,500 |
| Real Estate Costs | Lump Sum or Monthly |
| Opening Inventory | $8,000 to $20,000 |
| Miscellaneous Opening Costs | $9,500 to $70,000 |
| Uniforms | $400 to $3,000 |
| Insurance | $4,500 to $16,000 |
| Travel and Living Expenses While Training | $2,000 to $50,000 |
| Marketing Start-Up Fee | $0 to $10,000 |
| Additional Funds for First 3 Months of Operation | $0 to $108,000 |
| Sub-total Other | $24,400 to $277,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $526,900 to $1,809,500 (Does not include real estate costs) |
Average Revenue (AUV)
A Dunkin’ franchised restaurant makes on average $1,079,000 in revenue (AUV) per year. This is across all formats the franchise offers (freestanding and others).
For example, here is the extract from the FDD showing how much revenue Dunkin’ franchised freestanding restaurants made on average in 2023.
This compares to $788,000 yearly revenue for similar restaurant baked goods franchises. For example, below are 10 Dunkin’ competitors:
Dunkin’ Donuts Financial Plan
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Dunkin’ Donuts Franchise Disclosure Document
Frequently Asked Questions
How many Dunkin’ locations are there?
As of the latest data, Dunkin’ operates over 9,361 locations across the United States. This includes around 8,700 franchise-owned outlets and approximately 660 company-owned locations. Dunkin’ relies heavily on its franchise model to maintain its widespread presence across the country.
This distribution helps Dunkin’ maintain its expansive footprint, while franchisees manage day-to-day operations.
What is the total investment required to open a Dunkin’ franchise?
The total investment required to open a Dunkin’ franchise ranges from $526,900 – $1,809,500 for the freestanding restaurant format.
What are the ongoing fees for a Dunkin’ franchise?
Dunkin’ franchisees are required to pay a 5.9% royalty fee on gross sales. Additionally, there is a marketing and advertising fee of 5% of gross sales, which includes national and local advertising efforts. Franchisees are also subject to a technology fee that typically amounts to around $300 per month.
What are the financial requirements to become a Dunkin’ franchisee?
To qualify for a Dunkin’ franchise, prospective franchisees must have a minimum net worth of $500,000 and liquid assets of at least $250,000. These financial requirements ensure the ability to cover both the initial and ongoing operational costs.
How much can a Dunkin’ franchise owner expect to earn?
The average gross sales for a Dunkin’ franchise are approximately $1.08 million per location. Assuming a 15% operating profit margin, $1.08 million yearly revenue can result in $162,000 EBITDA annually.
Whilst EBITDA does not necessarily represent the owner’s pay, it can serve as a proxy for how much the owner can pay herself/himself as dividends.
Who owns Dunkin’ Donuts?
Dunkin’ Donuts is owned by Inspire Brands, a multi-brand restaurant company. Inspire Brands acquired Dunkin’ in December 2020 for approximately $11.3 billion. This acquisition added Dunkin’ Donuts and its sister brand, Baskin-Robbins, to Inspire’s portfolio, which also includes well-known restaurant chains such as Arby’s, Buffalo Wild Wings, and Sonic Drive-In.
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