- 2023 Franchise 500 Rank
#131 Ranked #144 last year
- Initial investment
$655K - $1.3M
- Units as of 2023
344 8.5% over 3 years
About Shipley Do-Nuts
More from Shipley Do-Nuts
Imagine stepping into a world where an iconic brand has not only satisfied the taste buds of many but has also etched itself into the hearts of generations – that’s Shipley Do-Nuts. With a variety of over 60 mouthwatering offerings of hot, freshly made Do-Nuts and kolaches, Shipley has fostered a “cult-like” following that speaks volumes about its offerings.
However, Shipley Do-Nuts is not just a delicious treat – it’s an entrepreneurial opportunity dripping with potential. Shipley is growing, with multi-unit development possibilities in prime territories across the southern and eastern United States. Supported by an experienced leadership team, our growth strategy is designed to make a huge impact on communities around the U.S. The support systems in place include real estate, construction, training, marketing, and operational assistance, all designed to ensure your transition into Shipley franchise ownership is a positive and rewarding experience.
Shipley has over 345 locations operating across the nation and has plans to continue its impressive growth in the next few years. The brand was recognized by Entrepreneur Magazine as being the #1 brand in its category and ranked #144 overall in the top 500 franchise listing. Shipley was also recognized as one of Fast Casual’s Top 100 Movers and Shakers in 2023.
The future of Shipley Do-Nuts is a journey marked by greatness, as we set our sights on exceeding 600+ locations by 2026. Beyond being a brand, Shipley is a movement, a force that not only transforms taste buds but also uplifts and supports entire communities. The success of our market optimization strategy is evident through the commitments we’ve garnered for new shops in key regions such as Texas, Georgia, Florida, and Colorado. Online ordering innovations have driven over 20% incremental sales growth, while a remarkable +21% YOY comp sales growth in 2022 underscores our momentum.
To unlock a world of opportunities with Shipley Do-Nuts, the initial investment per shop ranges from $655,000 to $1,339,500. A franchise fee of $40,000 and a development fee of $10,000 per unit are part of this exciting venture. So, journey with us as we transform not just donuts, but business ownership dreams. Shipley Do-Nuts is more than a franchise – it’s a family, a community bound by the love of indulgence and innovation. Together, let’s script a future that’s rich in flavor and prosperity!
|Franchising Since||1987 (36 years)|
|# of employees at HQ||75|
This company is offering new franchisees in the following US states: Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia
|# of Units||344 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Shipley Do-Nuts 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.
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.
|$655,000 - $1,339,500|
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.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
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.
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.
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.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Shipley Do-Nuts has relationships with third-party sources which offer financing to cover the following: equipment, 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||136 hours|
|Classroom Training||24 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
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.
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.
|# of employees required to run||10|
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.
Franchise 500 Ranking History
Compare where Shipley Do-Nuts landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Shipley Do-Nuts ranked on other franchise lists? Find out below.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
Starting January 1, franchise royalty fees will rise from 4% to 5% for new locations in the U.S. and Canada.
If you're thinking about becoming a franchisee, find out what you're getting yourself into by reviewing this quick guide.
These franchises are putting their money where their mouth is when it comes to inclusivity.
From banking to marketing to event planning, find out who to hire to help your business thrive.
Would You Turn Your Small Business Into a Franchise? Here's Why Everyone From Hardware Stores to Hot Dog Shops Are Doing It.
When you've put your blood, sweat and tears into building an independent business, it's hard to know if converting to franchise is selling out, or buying into something better. We talked to business owners across industries about how they made the decision, and to franchisors on why they're pursuing the conversion strategy.
She Competed On The U.S. Olympic Swim Team Before Becoming This Brand's Top Franchisee. Here's Her Winning Business Strategy.
Cammile Adams knows enthusiasm, expertise and common sense go a long way.