Quick Summary

Dunkin Franchise Costs, Fees, and Profits: Dunkin’, originally established as Dunkin’ Donuts in 1950 by Bill Rosenberg, has grown into a globally recognized coffee and doughnut powerhouse. With over 70 years of experience, Dunkin’ stands as one of the largest quick-service restaurant brands in the world.

Dunkin’ has evolved beyond its traditional breakfast offerings to include a diverse menu, helping the brand build a proven business model with nearly a decade of continuous growth. Headquartered in Canton, Massachusetts, Dunkin’ boasts more than 12,000 restaurants across 36 countries, serving over 3 million customers daily.

The majority of Dunkin’ outlets are franchise-owned, with the parent company, Inspire Brands, acquiring 31 restaurants in 2022. Dunkin’ became part of Inspire Brands’ portfolio in 2020, cementing its status as a key player in the international restaurant industry.

Key Takeaways

• Dunkin’ operates a successful franchising model, contributing to its ranking as the #6 best franchise on Entrepreneur’s “Franchise 500 Ranking.”

• Dunkin’ franchisees undergo a rigorous application process and comprehensive training to maintain brand quality.

• With over 11,000 franchises worldwide and 9,571 in the U.S., Dunkin’ continues to expand its presence with a beverage-led strategy.

• Starting a Dunkin’ franchise requires an initial investment ranging from $121,400 to $1,787,700, with ongoing royalty and advertising fees.

• Dunkin’ franchise owners earn an average annual salary of $124,000, depending on store location and traffic.

Is Dunkin’ a Franchise?

Yes, Dunkin’ operates under a traditional franchising model, where franchisees own and manage their stores. This approach has significantly contributed to Dunkin’s rapid expansion over the years. In 2024, Dunkin’ was ranked #6 on Entrepreneur’s “Franchise 500 Ranking” list.

Prospective franchisees must undergo a rigorous application process, including financial reviews and business plan evaluations, followed by signing a franchise agreement. Approved franchisees complete a comprehensive training program to ensure they can deliver the high-quality experience associated with the Dunkin’ brand.

Franchisees are responsible for managing daily operations, including paying marketing and royalty fees to the parent company.

How Many Dunkin’ Are There in the U.S.?

Dunkin’, a renowned leader in the coffee and doughnut market, has over 11,000 franchises globally, with 9,571 located in the United States as of January 2022.

Since beginning its franchising journey in 1955, Dunkin’ has continuously expanded its footprint both domestically and internationally. Known for its wide range of coffee and tea beverages, alongside an evolving food menu, Dunkin’ remains a favorite among franchise owners and customers alike.

With a strong focus on growth and a beverage-led strategy, Dunkin’ is well-positioned to remain a dominant player in the coffee and doughnut market.

What Training Is Required to Open a Dunkin’?

Approved Dunkin franchisees must complete a comprehensive training program designed to ensure operational excellence. The program includes:

• Web-Based Courses: Covering essential business management skills.
• In-Person Training: A three-day intensive business course held in Boston, Massachusetts.
• Hands-On Training: Franchisees typically spend 4-6 weeks in training, which includes both online and in-person sessions.

In addition to training, Dunkin’ provides support for securing financing, selecting store locations, and overseeing store construction, ensuring franchisees are well-prepared for success.

How Much Does It Cost to Open a Dunkin’?

Starting a Dunkin franchise requires an investment that varies based on the store model and location:

Traditional Store Format (1,200–2,600 sq. ft.):

• Initial Franchise Fee: $40,000 to $90,000.
• Ongoing Franchise Fee: 2% to 6% of gross sales.
• Advertising Fee: 5% of gross sales.
• Total Investment: $526,900 to $1,787,700.

Non-Traditional Locations (e.g., airports, universities):

• Annual Franchise Fee: $1,000 to $2,250.
• Ongoing Franchise Fee: 5.9% of gross sales.
• Advertising Fee: 2.5% of gross sales.
• Total Investment: $121,400 to $972,800.

This range of costs allows potential franchisees to select a business model that aligns with their financial goals and operational preferences.

What Is the Dunkin Franchise Fee?

The initial franchise fee for a Dunkin’ location ranges from $40,000 to $90,000, depending on the store’s size and location. Additional ongoing costs include:

• Royalty Fee: 5.9% of gross sales.
• Advertising Fee: 5% of gross sales.

Franchisees must also meet specific financial requirements, including a minimum net worth of $500,000 and at least $250,000 in liquid assets. These criteria ensure that franchisees are well-equipped to succeed.

How Much Does a Dunkin’ Make a Year?

Dunkin’ franchise owners earn an average annual salary of approximately $124,000 after accounting for expenses like royalties, rent, and advertising fees. Earnings can vary significantly depending on factors such as store location and traffic.

Key Store Formats:

• Standalone Stores: Typically generate higher traffic and sales.
• Mall Locations: Moderate sales, depending on foot traffic.
• Non-Traditional Settings: Vary widely in revenue potential.
• Drive-Through Outlets: Often achieve higher sales due to convenience.

On average, a Dunkin’ store generates substantial revenue, making it an attractive franchise option for entrepreneurs.

Franchise Empire’s Thoughts

Dunkin’ is an iconic American brand with a proven business model. However, owning multiple locations is often necessary to achieve significant profitability. Territories are mostly sold out, and startup costs are high, making it a challenging but rewarding investment.

For those considering entry into the Dunkin’ franchise system, acquiring existing locations may be the most viable path. Despite these challenges, Dunkin’’s strong brand identity and consistent customer base make it a compelling franchise opportunity for those with sufficient resources.

Interested in exploring more franchise opportunities? Check out our guide to 5 Low-Cost Franchises That Make $1,000,000 and discover how to maximize your investment potential!