The donut businesses across the United States of America have been on a steady increase with the unique and high-quality products attracting clients from all parts of the country. One such brand that has made a significant impact on this market is Parlor Doughnuts, famous for its artisanal and layered donuts. Started in 2019 in Evansville, Indiana, Parlor Doughnuts is already a favorite for many donut fans who are looking for something other than the Umami bomb that the traditional donut is.
This article focuses on the franchise features of Parlor Donuts, the Parlor Donuts Franchise costs involved in setting up a franchise, the margins for profit, and outlines how you can commence this great business venture in the year 2024.
Table of Contents
About Parlor Doughnuts
| Company Name | Parlor Doughnuts |
| Founded by | Darrick Hayden |
| Established Year | 2019 |
| Products | Bakery items, Doughnuts, breakfasts, coffee and others |
| Number Outlets | Over 50 outlets across 12 states |
| Official Website | https://www.parlordoughnuts.com/about |
Parlor Doughnuts has also become an instant hit because of their great approach to a regular donut. The company has made it their mission to create delicious gourmet, layered donuts. Every donut that they sell is unlike any other donut, as it uses a recipe that produces flaky croissant-like layers, but they remain sweet just like a donut.
In addition, Parlor Donuts provides drinks and also improved its breakfast menu by including acai bowls, avocado toast, and many more. Such diversification enables Parlor Donuts to target a wider range of customers starting from a standard donut eater to the more health-conscious looking for a breakfast.
Key Details of the Parlor Doughnuts Franchise
As of 2024, Parlor Donuts is actively expanding across the USA, making it an attractive opportunity for entrepreneurs looking to invest in a growing and beloved brand.
| Brand Name | Parlor Donuts |
| Industry | Food and Beverage (Donuts and Coffee) |
| Founded | 2019 |
| Franchise Fee | $50,000 |
| Total Investment | Food and Beverages (Donuts and Coffee) |
| Royalty Fee | 6% |
| Marketing Fee: | 2% of gross sales |
| Average Revenue | Varies by location, but many locations report strong sales due to the brand’s popularity |
| Official Website | https://www.parlordoughnuts.com/franchising |
Why Choose Parlor Doughnuts Franchise?
There are a couple of reasons that allow Parlor Donuts to be seen as a great franchise opportunity in the year 2024:
Exclusive Products: The donut with a layered approach is not commonplace and hence most franchisees are at a competitive edge in quite a majority of markets. The high-quality ingredients and different structure of Parlor Donuts keep the customers coming back for more.
Opportunity for Brand Recognition: Even if it is just Parlor Donuts’ second year of doing business it has managed to grow quickly and it is on its way to becoming a nationally recognized brand. Investing early in the business has its advantages since growth is guaranteed and all of it cannot be missed.
Business Diversity: Aside from donuts, Parlor Donuts has coffee, and breakfast bowls among other products, which enable franchisees to target new markets at different times of the day.
Business Fragility: The Parlor Donuts franchise is quite flexible in assisting its franchisees from scratch, including but not limited to the proper site to start the business, the design of the store, marketing help, and operational support. This provides a good opportunity for the new franchisees as most of them have decided to open up a franchise without any prior experience in the food industry.
How Much Does a Parlor Doughnuts Franchise Cost?
On the other hand, Parlor Donuts requires relatively low amounts of investment in comparison with other food and beverage franchises to establish its franchise.
| Franchise Fees | $40,000 |
| Setup cost | $150,000 to $300,000 |
| Furniture and Decoration | $35,000 – $50,000 |
| Equipment Costs | $75,000 to $100,000 |
| Initial Inventory | $35,000 – $45,000, |
| Security Deposit | Up to $10,000 |
| Insurance | $5,000 |
| Royalty Fees | 5% on monthly sales |
| Marketing Fees | 2% on gross sales |
| Total Investment | $175,000 and $750,000 |
Initial Investment
The estimated amount for opening a Parlor Donuts franchise is between $175,000 and $750,000. These are the expenses which include among others:
The Franchise Fee of $40000. This fee enables you to legally operate in the Parlor Donuts name.
As far as Store Build-Out goes, we have the cost of Landscape, construction design, decoration works, and installation of furniture, and fittings. The cost, usually averaging between $150,000 to $300,000, will vary with the expected size of the outlet and cost variations across regions.
Expect to part with anything between $75,000 to $100,000 towards acquiring must-have equipment like ovens, fridges, and display racks, and also towards the purchase of basic stock at the commencement of the establishment.
Last but not least are the Licensing and Permits, Assuming no business permits or health permits and any other such statutory requirements would not go beyond $10000-$20000 One can also include marketing expenditures for the time being, the first couple of months or even a few occasions even after a while should be enough for their management. Expect to part with anything between $10,000 to $20000 in the first few months.
Ongoing Costs
Other than the initial investment these franchisees will need to pay the following fees:
Franchise Royalty: 5% of gross sales paid to the franchisor.
Marketing Fee: 2% of Gross Sales for National and Regional marketing campaigns by Parlor Donuts.
These are standard fees in the franchising world and all add to helping grow the brand.
Parlor Doughnuts Franchise Profit Margin and Return on Investment (ROI)
One of the most important considerations for any potential franchisee is the potential for profit. Parlor Donuts franchises typically see a healthy profit margin, thanks to the relatively low cost of ingredients and the high demand for their products.
Profit Margins
An individual unit profit margin for a Parlor Donuts franchise is subject to variance due to factors such as location, sales volume, and cost of operation. Nevertheless, the average franchisee can easily make around 20-25% in profit margins. One of the reasons for this is that donuts have low cost-of-goods-sold (COGS), but also high premium pricing Parlor Donuts could command with their gourmet options.
Return on Investment (ROI)
The time it would take to get your ROI back will depend on a number of factors like where the store is located and how efficiently you manage everything. Most of the franchisees will get back their ROI within the next two to three years. Urban areas or those near busy shopping centers could see a quicker ROI, while more suburban or rural locations may need to wait longer before breaking even.
Space Requirements
A typical Parlor Donuts, restaurant needs 1,200 to 1,800 square feet. It is just large enough to fit in a kitchen space, display counters and seats for customers but also ingredients/supplies storage. In the end, more area compared to taking care of motorbike would certainly be essential for points such as a drive-thru.
A location must be selected for accessibility in terms of foot traffic, being near other businesses and having ample parking. Location, location: Where your store is placed in town can play a big role in whether or not your franchise makes it.
Benefits of a Parlor Doughnuts Franchise
Here are a few strategic advantages in investing in Parlor Doughnuts Franchise:
Brand Recognition: Parlor Donuts has already competed for its way to the top and become known as a purveyor of premium, artisanal, and one-of-a-kind donut product offerings.
Training and Support: The franchisor offers excellent training, from day-to-day operations to even the most advanced marketing tactics ensuring that even those new to business ownership can be a big success.
Protected Territories: A Parlor Donuts franchise is only available in a specific protected territory. Franchisees cannot compete against each other hence there can be no multiple store formats near any others without the owner operating one or having it done so through someone else but not as part of their own holdings.
Diverse Menu: Parlor Donuts sells more than donuts, the storefront offers various beverages and breakfast items that allow franchisees to make money during all hours instead of just when people are eating some traditional dozen.
National Marketing Campaigns: in addition to helping you build a steady stream of customers with individual marketing strategies Parlor Donuts offers national campaigns and as well guides on social media.
Documents Required for a Parlor Doughnuts Franchise
When you’re ready to start the process of applying for a Parlor Donuts # franchise, bring these items with you.
Franchise Agreement: All the Terms and Conditions that are associated with a Franchise.
Financial Statements (both Business and Personal): Demonstrating you have the financial capacity to fund both the investment in, as well as ongoing operations of, a franchise
Business Plan: Some franchisors will want to see that you have a detailed business plan of how you will operate your location, some even require this info on the initial app.
Identity Proof: Government ID, proof of address, and business registration forms.
How to Apply for a Parlor Doughnuts Franchise?
For those looking to get started with your own Parlor Donuts franchise, the following are the ideal steps:
Go To The Official Website: Visit the official Parlor Donuts website and scroll down to franchises.
Fill Out Franchise Inquiry Form: Complete the franchise inquiry form with your contact information, and a brief description about why you are interested in that particular franchise concept.
First Review: Once you have completed the form, a Parlor Donuts team member will reach out and review the opportunity.
Review the Franchise Disclosure Document (FDD): If you wish to proceed, you will receive the FDD, which outlines all the details of the franchise agreement.
Sign the Agreement & Pay Franchise Fee: After you’ve reviewed the FDD and agree to move forward, you will sign the agreement as well as hand over the initial franchise fee.
Store Setup and Launch: After finalizing the agreement, Parlor Donuts will assist you with site selection, store setup, and staff training, preparing you for a successful grand opening.
Parlor Doughnuts Franchise Contact Details
| Official Website | Parlor Doughnuts |
| Franchise Section and Application Form | Form |
Explore: Mochinut Franchise Cost, Fees, Profit & How to Apply in 2024
In-N-Out Burger Franchise Cost, Profit and How to Get? 2024
Conclusion
In conclusion, Parlor Doughnuts Franchise Cost, Profit & How to Apply in 2024. The Parlor Doughnuts Franchise offers a unique opportunity to tap into the growing demand for high-quality, gourmet donuts in the USA. With a reasonable investment range, strong profit margins, and comprehensive support from the franchisor, it’s an excellent choice for entrepreneurs looking to enter the food and beverage industry in 2024. By leveraging the brand’s innovative products, loyal customer base, and proven business model, you can build a profitable business with Parlor Donuts.
FAQs
What is the initial investment for a Parlor Doughnuts Franchise?
The total initial investment for a Parlor Donuts franchise ranges from $175,000 and $750,000. This cost includes franchise fees, equipment, and other startup expenses.
How much does a Parlor Doughnuts Franchise earn?
Franchise earnings depend on location, management, and market demand, but Parlor Donuts franchises are known for their profitable returns, with an estimated profit margin of 20-25%.
How long does it take to break even or see a return on investment (ROI)?
Franchisees typically break even and start seeing ROI within 18 to 24 months, depending on market conditions, location, and business performance.
Parlor Doughnuts Image Gallery
