Randy’s Donuts Franchise FDD, Profits & Costs (2025)

Randy’s Donuts, established in 1953, is a legendary donut shop and a cultural landmark in Los Angeles, California. Its iconic giant rooftop donut has become a symbol of the city, drawing visitors from across the globe and featuring prominently in movies, music videos, and TV shows. Based in Inglewood, California, the brand has grown to include multiple locations throughout the state.

In 2019, Randy’s Donuts began franchising, creating opportunities for dedicated entrepreneurs to open their own stores. Known for its fresh, handmade donuts prepared daily, the brand has built a strong reputation for exceptional quality and consistency, making it a beloved choice among locals and tourists.

What sets Randy’s Donuts apart is its distinctive branding and unwavering commitment to tradition. By preserving its classic recipes, the shop has secured its place as one of the nation’s most highly rated donut establishments.

Initial Investment

How much does it cost to start a Randy’s Donuts franchise? It costs on average between $241,000 – $608,000 to start a Randy’s 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. Indeed, Randy’s Donuts offers 3 types of franchises:

Location Type	Initial Investment
Stand-alone, non-retail commissary production facility	$400,000 – $481,000
Drive-Thru Location	$478,500 – $607,500
In-Line (Non-Drive-Thru) Location	$330,500 – $539,500

We are summarizing below the main costs associated with opening a Drive-Thru Randy’s Donuts location.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure	Amount
Initial Franchise Fee	$35,000
One Month’s Rent	$8,000 – $10,000
One Month’s Security Deposit	$8,000 – $10,000
Architect Fee	$15,000
Construction / Leasehold Improvements	$175,000 – $200,000
Furniture, Fixtures, and Equipment	$40,000 – $50,000
Surveillance System	$4,000 – $6,000
Signage	$12,000 – $18,000
Opening Inventory and Supplies	$8,000 – $10,000
Point-of-Sale and Computer Systems	$7,000
Market Introduction Program	$10,000
Training Expenses	$10,000 – $15,000
Travel-Related Expense Reimbursement for On-Site Opening Support	$5,000 – $10,000
Insurance (Annual)	$6,000 – $9,000
Professional Fees	$2,500 – $7,500
Business Licenses and Permits	$3,000 – $5,000
Miscellaneous Opening Costs	$10,000 – $20,000
Additional Funds – 3 Months	$30,000 – $50,000
TOTAL ESTIMATED INITIAL INVESTMENT (Non-Baking Drive-Thru)	$388,500 – $487,500
Construction / Leasehold Improvements (Baking Supplement)	$25,000 – $50,000
Furniture, Fixtures, and Equipment (Baking Supplement)	$50,000
Opening Inventory and Supplies (Baking Supplement)	$15,000 – $20,000
TOTAL ESTIMATED INITIAL INVESTMENT (With Baking Supplement)	$478,500 – $607,500

Average Revenue (AUV)

How much revenue can you make with a Randy’s Donuts franchise? A Randy’s Donuts franchised store makes on average $1,026,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Frequently Asked Questions

How many Randy’s Donuts locations are there?

As of the latest data, Randy’s Donuts operates 23 locations. Out of these, 12 are franchise-owned.

What is the total investment required to open a Randy’s Donuts franchise?

The total investment required to open a Randy’s Donuts franchise ranges from $241,000 to $608,000.

What are the ongoing fees for a Randy’s Donuts franchise?

Randy’s Donuts franchisees are required to pay an ongoing royalty fee of 5% of gross sales. Additionally, there is a brand fund contribution, commonly referred to as a marketing fee, which ranges between 2% and 4% of gross sales.

These fees support the franchisor’s continuous efforts in brand development, operational support, and marketing initiatives, ensuring the franchise’s sustained growth and success.

Who owns Randy’s Donuts?

Randy’s Donuts is owned by lawyer and entrepreneur Mark Kelegian, who acquired the company in 2015. Under his leadership, the brand has expanded significantly, opening multiple franchise locations both domestically and internationally.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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