Start a Duck Donuts Franchise in 2024

2024 Franchise 500 Rank: #445 Not ranked last year

Initial investment: $444K - $653K

Units as of 2024: 157 49.5% over 3 years

In 2006, Duck Donuts opened its first location in Duck, North Carolina, where the Outer Banks is located. Their fresh, made-to-order donuts and variety of coffee flavors quickly made it a popular donut destination. The high product quality and family-friendly atmosphere put it on track to be one of the donut industry’s most well-known brands.

Duck Donuts may be a good business option for those passionate about giving back while also operating a donut franchise. It may be one of the most beloved franchising companies in the donut industry, so if you're in the business for a business, don't miss out! Duck Donuts has over 100 locations all over the United States. The franchise plans to continue expansion efforts and open stores in both the U.S. and internationally.

Why You May Want to Start a Duck Donuts Franchise

A dedicated corporate team strives to support all Duck Donuts franchisees. They help their franchisees locate a store, and provide in-depth training and a marketing team to assist with location-specific marketing campaigns.

The franchise not only invests in its franchisees, but also in its community. It also encourages franchisees to do the same. Duck Donuts considers itself to be a family, and with its Quack Gives Back program, it partners with various local organizations. Through events, sales, and marketing, it raises awareness and funds for these organizations.

Duck Donuts partners with Gabe's Chemo Duck Program, which provides comfort, education, and therapeutic tools to children undergoing chemotherapy. From 2017 to 2021, Duck Donuts and its franchisees raised more than $140,000 for Gabe's Program.

What Might Make Duck Donuts a Good Choice?

Duck Donuts may be a tasty way to own and operate multi-unit franchise stores. And judging by the lines outside many of its doors, there may be no question that it serves an in-demand product. With online and app ordering as well as delivery offered by third-party partnerships, customers can get their morning, afternoon, and evening donut fixes one way or another.

The company even invites patrons to cash in on a loyalty reward program by earning points for Duck Donut deals. Being accessible to customers through these digital sources may mean that your location's reach can stretch further than you initially think possible.

To be part of the Duck Donuts team, make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How to Open a Duck Donuts Franchise

Wondering how to open a franchise? Duck Donuts breaks up the process into fairly manageable steps. Before anything else, the franchisor will want to get to know who you are, your goals, and your interests. During onboarding, a Duck Donuts representative will contact you to conduct an interview and discuss the qualification process.

As you speak to existing franchisees, come prepared to ask questions directed to the Duck Donuts team. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Duck Donuts franchise. Then, you might be able to get started with an initial investment.

There's no doubt about it. customers can't resist a fresh and delicious Duck Donuts treat!

Company Overview

About Duck Donuts

Industry	Food
Related Categories	Doughnuts, Baked Goods, Coffee, Miscellaneous Baked Goods, Breakfast/Brunch Restaurants
Founded	2006
Parent Company	New Spring Financial
Leadership	Betsy Hamm, CEO
Corporate Address	1215 Manor Dr., #302 Mechanicsburg, PA 17055
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, TikTok

Business Overview

Franchising Since	2013 (11 years)
# of employees at HQ	30
Where seeking	This company is offering new franchises worldwide. This company is offering new franchises in the following US states: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, West Virginia, Wyoming
# of Units	157 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Duck Donuts franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$40,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$444,435 - $653,285
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$400,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$200,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	10% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%-6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Duck Donuts has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	60 hours
Classroom Training	20 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	Yes
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes