Shipley Do-Nuts Franchise FDD, Profits & Costs
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.
Initial Investment
How much does it cost to start a Shipley Do-Nuts franchise? It costs on average between $503,000 – $1,025,000 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 |
|---|---|
| Initial Franchise Fee | $40,000 |
| Travel and Living Expenses While Training | $1,000 – $10,000 |
| Lease Deposits/Payments | $8,400 – $20,000 |
| Equipment, Furnishings, Technology and POS System | $133,952 – $230,532 |
| Leasehold Improvements | $218,887 – $510,692 |
| Signage | $15,329 – $64,920 |
| Opening Inventory – Food Items | $20,000 – $30,000 |
| Opening Inventory – Non-Food Items | $1,500 – $3,000 |
| Grand Opening Advertising Campaign | $20,000 |
| Utility and Other Security Deposits | $2,500 – $5,500 |
| Insurance | $1,000 – $2,000 |
| Architectural/Legal | $14,893 – $44,802 |
| Business Licenses/Permits | $1,000 – $3,500 |
| Additional Funds/Working Capital – 3 Months | $25,000 – $40,000 |
| Total Estimated Initial Investment | $503,461 – $1,024,946 |
Average Revenue (AUV)
How much revenue can you make with a Shipley Do-Nuts franchise? A Shipley Do-Nuts franchised store makes on average $849,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Shipley Do-Nuts Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Shipley Do-Nuts franchise?
Most franchise buyers in Shipley Do-Nuts’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Shipley Do-Nuts franchise investment?
Payback periods for franchises in Shipley Do-Nuts’s category 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 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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
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Research Shipley Do Nuts franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Shipley Do Nuts FDD Review.
