Are you dreaming of bringing a beloved doughnut brand to your neighborhood? Parlor Doughnuts has earned a reputation for its unique, layered doughnuts and trendy ambiance, making it a standout choice for franchise investors. If you’re considering opening a Parlor Doughnuts franchise, This blog will take you through everything you need to know about investing in a Parlor Doughnuts franchise, including costs, fees, financial performance, and more.
Let’s break it down together!
Franchise Brand Details
| Brand Name: Parlor Doughnuts |
| Industry: Restaurants & Food |
| Founded year: February, 2019 |
| Founder: Darrick Hayden and Josh Tudela |
| Headquarters by: Great Lakes, Midwestern US |
| Outlet: 50+ Corporate & Franchise Shops |
About Parlor Doughnuts
Parlor Doughnuts began as a small doughnut shop in downtown Evansville, IN in 2019. Our Famous Layered Doughnuts soon became a hometown favorite, so we set out on a mission to bring doughnuts to the people – everywhere! Across the nation, our teams get up early every day to make fresh batches of our Famous Layered Doughnuts. Come try one – Parlor Doughnuts think it will be the best doughnut you’ve ever had.
Why Choose Parlor Doughnuts?
Parlor Doughnuts is famous for its layered doughnuts, which set it apart from competitors. The brand is known for high-quality, artisanal products that appeal to a broad customer base. Many franchisees are drawn to the brand’s commitment to quality and unique product offerings. This article will explore all the investment details and financial considerations, so you can decide if this is the right franchise opportunity for you.
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Parlor Doughnuts Franchise Investment Details
Starting a Parlor Doughnuts franchise requires an initial investment that covers setup, equipment, fees, and other essentials.
The total initial investment for a Parlor Doughnuts franchise ranges between $175,000 and $750,000. This amount varies based on location, setup specifics, and other factors.
Let’s dive into the investment costs and see what it takes to get started.
| Expense Type | Cost Range (USD) |
| Total Initial Investment | $175,000 – $750,000 |
| Franchise Fee | $40,000 – $50,000 |
| Setup Costs | $150,000 – $300,000 |
| Furniture & Decoration | $35,000 – $50,000 |
| Equipment Costs | $75,000 – $100,000 |
| Initial Inventory | $35,000 – $45,000 |
| Security Deposit | Up to $10,000 |
| Insurance | Around $5,000 |
The franchise fee, ranging between $40,000 and $50,000, grants the right to operate under the Parlor Doughnuts brand. This fee covers training, support, and access to brand marketing materials.
Breaking Down the Initial Investment
Let’s look closer at each cost involved in opening a Parlor Doughnuts franchise:
- Total Initial Investment: The initial setup costs range between $175,000 and $750,000, depending on factors like the location, size of the store, and local setup requirements.
- Franchise Fee: To operate under the Parlor Doughnuts brand, expect to pay a franchise fee of $40,000 to $50,000. This fee grants you access to the brand name, proprietary recipes, and training support.
- Setup Costs: These costs are estimated at $150,000 to $300,000 and cover the expenses to build out and set up the store, from renovations to securing utilities.
- Furniture & Decoration: Creating Parlor Doughnuts’ inviting vibe requires about $35,000 to $50,000 for interior furniture, seating, and décor.
- Equipment Costs: Doughnut-making requires specialty equipment, with costs typically ranging from $75,000 to $100,000.
- Initial Inventory: An initial inventory investment of $35,000 to $45,000 will cover ingredients, packaging, and other essentials.
- Security Deposit: The security deposit, generally up to $10,000, secures the rental or lease space.
- Insurance: Around $5,000 is recommended for basic insurance coverage, essential for franchise operations.
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Ongoing Fees for Parlor Doughnuts Franchise
Once you’re up and running, you’ll need to manage ongoing fees, which support the franchise’s larger marketing efforts and contribute to operational costs:
| Ongoing Fee | Percentage |
| Royalty Fee | 5% of monthly sales |
| Marketing Fee | Approximately 1% of gross sales |
These fees help maintain brand consistency and support national marketing initiatives, which enhance brand visibility and customer loyalty.
Financial Performance of Parlor Doughnuts Franchise
Many Parlor Doughnuts franchisees report strong sales thanks to the brand’s growing popularity. Although revenue varies by location, let’s look at some financial metrics that can help you understand the earning potential.
- Average Revenue: Due to its unique doughnut offerings, many locations report strong monthly sales, although this depends on store location, size, and customer traffic.
- Profit Margin: Franchisees can anticipate an average profit margin of 20% to 25%.
- Break-Even Period: Most franchisees report breaking even within 18 to 24 months, though factors like location and effective management can impact this timeline.
Example Financial Breakdown
Here’s an example to give you an idea of the financial breakdown:
| Financial Aspect | Estimated Value |
| Monthly Revenue | $50,000 – $80,000 |
| Monthly Operating Costs | $40,000 – $55,000 |
| Profit Margin | 20% – 25% |
| Break-Even Period | 18 – 24 months |
Pros and Cons of Investing in a Parlor Doughnuts Franchise
Pros:
- Established Brand – As a growing brand with a unique product, Parlor Doughnuts stands out in the crowded dessert market.
- Popular Product – Croissant-style doughnuts are in high demand, attracting customers looking for a unique dessert experience.
- High Return Potential – With profit margins averaging around 20% to 25%, there’s potential for strong returns.
Cons:
- High Initial Investment – Costs can reach up to $750,000, which may be a barrier for some investors.
- Ongoing Fees – The 5% royalty fee and 1% marketing fee may impact profits, especially in lower-revenue months.
Steps to Open a Parlor Doughnuts Franchise
If you’re ready to move forward with a Parlor Doughnuts franchise, here’s an overview of the key steps:
- Research: Learn as much as possible about Parlor Doughnuts and determine if it aligns with your goals.
- Submit an Application: Complete the franchise application form and wait for Parlor Doughnuts to review it.
- Attend an Interview: Qualified applicants are invited to an interview to discuss expectations and assess suitability.
- Sign the Franchise Agreement: After approval, you’ll sign the franchise agreement and pay the franchise fee.
- Complete Training: Parlor Doughnuts offers training to help new franchisees learn the operations and customer service standards.
- Open Your Store: Once training is complete, you’re ready to launch your Parlor Doughnuts location!
Is Parlor Doughnuts the Right Franchise for You?
If you’re passionate about quality food and enjoy engaging with customers, a Parlor Doughnuts franchise could be a fulfilling and profitable investment. With its unique product and proven business model, Parlor Doughnuts offers a robust franchise opportunity in a growing industry.
Final Thoughts
Investing in a Parlor Doughnuts franchise is a significant commitment but can lead to substantial rewards. The brand’s unique, layered doughnuts have captured the attention of customers across the country, and the franchise offers a promising profit margin with strong brand recognition. If you’re ready to be part of a popular brand with excellent growth potential, Parlor Doughnuts franchise might be the perfect fit.
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FAQ
Parlor Doughnuts is renowned for its signature layered doughnuts, which offer a distinct, flaky texture, similar to a croissant. This unique product sets it apart from traditional doughnut shops, along with its diverse flavor options and cozy, inviting atmosphere.
The total initial investment ranges from $175,000 to $750,000. This includes expenses like the franchise fee, setup costs, equipment, and initial inventory, though the exact amount varies based on location and store size.
The franchise fee for a Parlor Doughnuts location is between $40,000 and $50,000. This fee grants you the right to operate under the Parlor Doughnuts brand and includes access to proprietary recipes, training, and brand support.
Franchisees pay a royalty fee of 5% of monthly sales and a marketing fee of around 1% of gross sales. These fees help cover operational support and national marketing efforts.
Most franchisees report breaking even within 18 to 24 months. Factors like store location, customer traffic, and efficient management can affect the break-even timeline.
The initial franchise agreement term is generally 10 years, with options to renew based on performance and compliance with Parlor Doughnuts’ brand standards.
Parlor Doughnuts assists franchisees with site selection to ensure optimal locations based on factors like visibility, accessibility, and local market demand.
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