Shipley Do-Nuts Franchise: Costs, Fees, Profit & Locations

Shipley Do-Nuts is a popular doughnut and kolache franchise that’s known for offering a variety of over 60 types of doughnuts, with the plain glazed being a best seller. The company prides itself on the consistency and freshness of its products, aiming to delight customers of all ages.

Shipley Do-Nuts was founded in 1936 in Houston, Texas, by Lawrence Shipley Sr. Initially, the doughnuts were sold wholesale and were five cents a dozen. However, due to their popularity, Shipley began offering the doughnuts to the public within four years.

Lawrence Shipley Jr., the son of the founder, worked in the family business his entire life and continued his father's vision. Under his leadership, Shipley Do-Nuts expanded its menu to include kolaches and grew the company in several southern states. Today, the franchise has expanded to over 330 locations.

The ideal franchisees for Shipley Do-Nuts demonstrate a strong commitment to operational excellence, customer service, and product quality, while also possessing an entrepreneurial spirit and relevant experience in sales, marketing or retail. They should have excellent people skills, be able to foster a friendly atmosphere, and engage in community involvement.

Shipley Do-Nuts seeks franchisees who are dedicated to making their bakery successful, embodying the company's values of honesty, integrity and hard work while leveraging their passion and expertise to drive growth and achieve success in the QSR industry.

The Average Unit Volume (AUV) achieved by the top 25% of stores with drive-thrus, as disclosed in the Franchise Disclosure Document (FDD), is $1.44 million.

However, the franchise notes that the potential profitability of a Shipley Do-Nuts relies on various factors, such as meeting customer needs with product assortment, quality and service in a clean environment, adhering to operating principles, developing a customer-focused staff, and effectively managing sales trends and expenses.

The initial investment for Shipley Do-Nuts is estimated to be from $655,000 to $1,339,500. This includes:

• Initial Franchise Fee: $40,000

• Store Equipment: $150,000 - $200,000

• Opening Inventory: $7,500 - $25,000

• Leasehold Improvements: $350,000 - $750,000

• Working Capital for 3 Months: $50,000 - $150,000

• Initial Advertising: 1% of gross sales

• Initial Royalty (Conditions Apply): 1% of gross sales