Randy’s Donuts Franchise FDD, Profits & Costs
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:
Randy's Donuts Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Randy’s Donuts franchise?
Most franchise buyers in Randy’s Donutss investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans. Buyers with rollable retirement funds sometimes use a ROBS structure. See SharpSheets financial model hub for guidance.
How long does it take to pay back a Randy’s Donuts franchise investment?
Payback periods typically run 3-7 years depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: July 2026
Disclaimer
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Research Randys Donuts franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Randys Donuts FDD Review.
