Summer is a time of relaxation, activities, and indulgence, which makes sweet treats like Donut franchises a hot investment.
According to Technavio, the doughnut market is expected to grow by US$5.69 billion and experience a record CAGR of nearly 4 percent through 2024, with North America leading with a forecast growth rate of 34%. The key market driver for this growth is the ongoing rise of doughnut shops, which enjoyed a surprising 2020 that outperformed 2019 sales.
A study by GoldsteinResearch values the global doughnut market at over $40 billion, and expects an even higher CAGR of 5.2 percent for a longer period of time (through 2030). Goldstein Research believes that availability (with many bakeries adding doughnuts to their menus), low production cost, and a rising trend in low-calorie doughnuts will fuel the treat’s growth.
Check out these six doughnut franchises ready for a summer splurge:
Duck Donuts
Founded in 2006 and franchising in 2013, Duck Donuts quickly grew to 97 locations. In the past three years, the franchise has seen a 73.2% franchisee location increase, and has been recognized for its success by being ranked #486 in Entrepreneur’s Franchise 500 for 2021. Startup costs for a Duck Donuts franchise begin at $353,000. To learn more about a franchise opportunity with Duck Donuts, click here.
Dunkin’ Donuts
Founded in 1950 and franchising since 1955, Dunkin’ Donuts has become one of the most recognized doughnut brands in the world. With over 13,000 locations, the franchise has been awarded the #1 ranking in 2020 by Entrepreneur’s Franchise 500, and #2 ranking in 2021. Startup costs for a Dunkin’ Donuts franchise begin at $229,000. To learn more about a franchise opportunity with Dunkin’ Donuts, click here.
Hurts Donut Company
Founded in 2013 and franchising since 2015, Hurts Donut Company has quickly grown to 23 locations. The franchise attributes its success to extensive training of franchisees and staff (over 80 hours of training both in the classroom and on-the-job). Startup costs for a Hurts Donut Company franchise begin at $400,000. To learn more about a franchise opportunity with Hurts Donut Company, click here.
Niky’s Mini Donuts
Founded in 2012 and franchising since 2014, Niky’s Mini Donuts has targeted the niche market of mini donuts, attracting those who may want to limit their sugar intake and the trendy following of those who love miniature versions of products. Startup costs for a Niky’s Mini Donuts franchise begin at $75,000. To learn more about a franchise opportunity with Niky’s Mini Donuts, click here.
Peace, Love and Little Donuts, LLC
Founded in 2009 and franchising since 2016, Peace, Love and Little Donuts, LLC has rapidly grown to 28 locations, a 55.6% increase over the past three years. The franchise emphasizes its support of the military through a 20% off franchise fee for veterans. Startup costs for a Peace, Love and Little Donuts, LLC franchise begin at $121,000. To learn more about a franchise opportunity with Peace, Love and Little Donuts, LLC, click here.
Shipley Do-Nuts
Founded in 1936 and later franchising in 1987, Shipley Do-Nuts has grown to over 300 locations as it approaches nearly 100 years of service. When asked where the franchise’s long-term success comes from, leadership highlights its comprehensive support system for its franchisees. Startup costs for a Shipley Do-Nuts franchise begin at $200,000. To learn more about a franchise opportunity with Shipley Do-Nuts, click here.
Sources: