Franchise Deep Dive: Duck Donuts Franchise Cost, Fees, Profit and Data

Duck Donuts is a donut shop franchise concept that sells “warm, delicious and made-to-order” donuts, coffee and ice cream across the United States. Duck Donuts was founded in North Carolina in 2007 by Russ DiGilio, who wanted to create a place for families to be able to purchase delicious donuts and other treats.

Duck Donuts, which is now headquartered in Mechanicsburg, Pennsylvania, began offering franchise opportunities in 2013. Its first franchise location was opened in Williamsburg, Virginia.

As of December 2023, Duck Donuts has more than 100 stores open and even more in development across the country. The brand also has three international locations in Cairo, Egypt; Doha, Qatar; and Bangkok; Thailand.

Duck Donuts’ business model is centered around serving each customer a warm, delicious, and made-to-order donut in its family-friendly and beach-inspired atmosphere. Duck Donuts describes its franchise opportunity as “a simple, fast-growing and easy to-run concept with a small footprint.”

Duck Donuts also offers:

• Multi-unit development options

• Multiple store layout designs to fit a variety of scenarios

• Non-traditional locations and food trucks

• Catering and events for additional revenue opportunities

Additionally, Duck Donuts provides each of its stores with the support, resources and tools they need to get up and running. The brand lists the following assistance that it provides new owners:

• Real estate and constructionAssistance in securing and negotiating all lease or sale terms for your store

• Operations and trainingProvides in-depth training and operations instruction

• Marketing TeamAssists with all facets of marketing your location

According to the brand’s consumer-facing website, in 2022, the top 25% of Duck Donuts franchise locations earned an average of $847,623 in annual net sales.

As of the publishing of this story, the initial investment required to open a Duck Donuts franchise ranges from $424,285 to $608,835. This investment is broken down into the following costs:

• Franchise Fee: $40,000

• Training Expenses: $0 to $2,500

• Premises Deposits: $2,500 to $4,500

• Professional Design: $6,000 to $15,000

• Leasehold Improvements: $240,000 to $350,000

• Signage: $8,700 to $13,500

• Furniture, Fixtures and Equipment: $110,000 to $137,000

• Computer Systems: $15,000 to $17,000

• Initial Inventory: $7,000 to $10,000

• Grand Opening Marketing: $12,500 to $15,000

• Professional Fees: $750 to $5,000

• Licenses and Permits: $100 to $2,000

• Insurance: $3,000 to $5,000

• Operating Expenses Additional 3 Months Funds: $20,000 to $30,000

Franchise owners are also required to pay an ongoing royalty fee of 5% of gross sales and 2% toward a national marketing fund.

The initial franchise fee required to open a Duck Donuts franchise is $40K. Interested candidates must also have a minimum net worth of at least $400K and no less than $200K in liquid capital.

Duck Donuts also offers a 10% discount off its initial franchise fee for qualified military candidates.

• Betsy Hamm — CEO

• Devon Mailey — VP of Finance

• Craig Motuzas — VP of Marketing

• Chad White — VP of Operations

• Tom Perella — VP of Technology

• Gary Hitterdal — VP of Development

• Marcel Portmann — Director of Global Development

• Costas Siountres — Director of Canadian Development

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