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- 2022 Franchise 500 Rank
#478 Not ranked last year
- Initial investment
$502K - $819K
- Units as of 2022
20 9% over 3 years
Here’s what you need to know if you’re interested in opening a Hurts Donut Company franchise.
Hurts Donut Company, regarded as the "rebel of all donuts," is a fast-food company specializing in making donuts that they believe ignore all the rules of traditional donuts. With their uniform-free toppings, a Hurts Donut Company may thrive in the food stores industry as the bakery that features dessert donuts and pastries, customized donuts, gourmet, and classic traditional variations.
Timothy and Kas Clegg, the founders of Hurts Donut Company, opened the franchise's first donut shop in downtown Springfield, Missouri, in 2013. It has since grown to become a growing donut brand. Hurts Donut Company started in 2015 and now boasts more than 20 stores in over ten states, offering baked food specialties and restaurant services.
Why You May Want to Start a Hurts Donut Company Franchise
Hurts Donut Company strives to always be on time in case of any pastry "emergencies." The company strives to reach customers all across the United States, including schools and nonprofits, where they donate portions of their daily sales to charity. This diversification in products and services may help customers gain easy access to the brand.
Potential Hurts Donut Company franchisees do not necessarily need a background in a bakery. However, passionate individuals who are motivated and love to try new opportunities may be the right franchisee for the Hurts Donut Company franchise.
What Might Make a Hurts Donut Company Franchise a Good Choice?
Hurts Donut Company emphasizes being consistent in producing good products and services while maintaining the brand's integrity. Hurts Donut Company believes it provides products to all demographics and income levels, with some of their products priced at just over a dollar. Its extensive outreach and good brand name may help you tap into the loyal and potential customer base.
To be part of the Hurts Donut Company, you should make sure you're financially ready for initial capital investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Hurts Donut Company Franchise
As you decide if opening a Hurts Donut Company franchise is the right move for you, make sure you take time to explore the opportunity by researching the brand and your local area. While competition is healthy, too much of it may not allow for the most possible growth.
If selected as a franchisee, Hurts Donut Company will offer franchisees a multi-week training course at the company's headquarters in Springfield, Missouri. They will also offer staff training before the store opening. After that, the franchisee will receive continual training and ongoing support.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask questions to the Hurts Donut Company franchising team.
About Hurts Donut Company
- Franchising Since
- 2015 (7 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Minnesota, Missouri, Mississippi, Montana, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Wisconsin, West Virginia, Wyoming
- # of Units
- 20 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Hurts Donut Company 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.
- Initial Investment
- $502,000 - $819,000
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.
- 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.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- 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.
- 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
- 5-10 years
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?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Hurts Donut Company offers in-house financing to cover the following: franchise fee
- Third Party Financing
- Hurts Donut Company 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
- Additional Training
- Ongoing Support
NewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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
- 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.
Interested in franchise ownership like Hurts Donut Company? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Hurts Donut Company landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Hurts Donut Company ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Hurts Donut Company.
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