Why Consider The Dunkin Donut Franchise
Dunkin Donuts Franchise: A Brief History
Started as Luncheon services by Bill Rosenberg in 1946, this bakery franchise used to deliver meals and snacks to workers in the Boston area. This led to the launch of The Open Kettle which was a doughnut shop in Massachusetts and two years later its name was changes to Dunkin’ Donuts. Today, the franchise can be found in more than 32 countries all over the world and they boast of serving more than 70 varieties of doughnuts. This is in addition to both cold and hot coffee drinks, bagels and a number of other baked goods. The parent company of this franchise also franchises Baskin-Robbins so the two may at times get co-branded.
How to Open a Dunkin’ Donuts Franchise
Now that you have traced the roots of this franchise to the early days of its beginnings, let us take a look at how you can open a Dunkin’ Donut franchise for yourself. Just so you know, they are the largest coffee and baked goods chain in the whole wide world. The following are some of the steps that are needed in order to get started. In here, we also highlight the franchise cost so that you can prepare yourself well in terms of initial investment cost.
For a start, you need to check out the franchising opportunities that are available in your local area through their website. This will help you locate an opportunity in your city or state that you can apply for.
There are a number of requirements that you will be required to fulfill before you can proceed with the application as stipulated on their site. These qualifications include having the right kind of experience in multi-unit management, passion and the ability to build a high performing team. You also need to have the proper resources in terms of capital. Though these may vary depending on the market the lowest requirements are usually $250,000 in minimum liquid assets and half a million dollars minimum net worth per unit. Previous restaurant or hospitality experience is also a requirement since you will be working in the restaurant industry and it is important that you know how things go in this line of business.
In order to start your franchise, you are required to have an up-front investment of between $179,000 and $1,600,000 and an annual franchise fee of between $40,000 and $80,000. You will also be required to pay the company 5.9% of all royalties in addition to this fee. In case you are unable to raise all this capital at once, you can always seek the assistance of a financial institution.
You will also be required to hire a number of employees in order to help you with running the store. Training is a must before you can open your outlet. It is at this stage that your team building skills will come in handy since it is your staff which will assist you with the day to day operations of the business. You also get to receive support from the company headquarters in the form of newsletters, field operators and company meetings just to mention a few.
One thing that you should absolutely keep in mind at all times is the fact that you need to be committed to operating your franchise at all times. Absentee ownership is not allowed and your presence is needed. This is unlike a McDonald’s where the owner can step back from the operations altogether.
The franchise has a team of dedicated and experienced support professionals all over the country. From the very moment that you complete your application to the day your outlet opens and beyond, the team of experts is available to assist you with any issues that you may run into. This way, you are not left to your own means but instead guided gently and given the support you need to transition smoothly. You get to receive training on field marketing, operational support and other things that you will encounter in the course of running the franchise. Each member of the support team has an area to contribute knowledge in order to help support your franchise.
Additional Qualification Information
It is important to learn all you need to before you can fill in the application form in order to be a part of the Dunkin’ Donuts franchise. For one, both individual and corporate investors can take part in it. When the qualifications are being reviewed, there are a number of things that are taken into consideration such as prior history and experience in the food service industry, experience with profit and loss operations, starting and managing an organization, your financial history, customer relations, available capital and financing and your suitability to the system. You can gauge yourself against these yardsticks in order to see if you are likely to make the cut.
Training is also a part of the qualifications since you cannot rush headlong into a new business without learning the ropes first. This means that training is a must have on your to-do list before you can open your newly purchased franchise. The stringent qualification measures are out in place in order to get the most suitable candidates for the position. Operating a well-known brand franchise requires a lot of dedication from someone who is willing to carry on the business name and present the company brand in a good manner.
Like with most other franchises out there, there is very little wiggle room when it comes to Dunkin’ Donuts franchises. This means that you are not allowed to start making radical changes to the system as you wish. This is because the parent company usually has a brand and a reputation to uphold and allowing you to be a part of the franchise means that you too are a representation of their company. Going against the agreements can sometimes result in your original agreement getting cancelled; so long as you do everything right, you stand to gain a lot. There’s really no need to go outside of the system because more often than not, the system works.
In short, the Dunkin Donut franchise is one of the greatest bakery franchises with an established presence and reputation all over the world with promising returns on investments. It is definitely worth the investment.