Entrepreneur William Rosenberg founded a company in 1946 that delivered food to factory workers within the Boston area. He named the business Industrial Luncheon Services. As he continued his operations, he noticed the two most popular items sold in his business’ menu were coffee and doughnuts. It convinced him to open a doughnut shop named Open Kettle which turned into Dunkin’ Donuts after one year in service.
Why Franchise a Dunkin’ Donuts Branch?
Many people equate the Dunkin’ Donuts brand to delicious pastries and excellent-tasting coffee. The food joint is a subsidiary of the Dunkin’ Brands company and now maintains over 11,000 in several locations around the globe. It also boasts of an annual revenue of over USD 1 billion thanks to its widespread brand recognition along with clever advertising schemes.
The Pros and Cons of Becoming a Dunkin’ Donuts Franchisee
Numerous franchising opportunities await approved franchisee applicants of the Dunkin’ Donuts brand. However, as with any business, you need to approach with a sense of caution and full research should be carried out to ensure you are fully prepared for your new venture. One such resource is the wolf of franchises newsletter, which offers subscribers information about how to get started in franchising and expand their empire. In addition, before you start signing contracts, it’s best to do a cost analysis at franchisknowhow.com. After securing your capital, it’s essential to know what to expect from running a Dunkin’ Donuts establishment. Like any business opportunity, there are advantages and disadvantages to investing in this famous coffee and doughnut shop.
The Dunkin’ Donuts name is synonymous to great-tasting coffee and doughnuts for many people. Running a branch will give franchisees several incentives for business growth. As the franchiser, Dunkin’ Donuts may commend your efforts by giving them optimal results. The following are a few advantages to investing in a Dunkin’ Donuts franchise:
Considerable Expertise in the Industry
Dunkin’ Donuts offers assistance in the development, construction, advertising, marketing, and franchising knowledge to approved franchisees. Its deep expertise is helping in numerous business opportunities for branch owners and managers in areas like restaurant development and training hires.
The brand’s experts offer guidance in establishing a business as professionals provide training and support to deliver the necessary tools and information to staff members. According to the Dunkin’ Donuts website, the company “strives to keep you at your best.”
An article from Entrepreneur magazine named Dunkin’ Donuts as the second on the list of Franchise 500 companies. The report also states that the company opened a net of 202 stores added to its roster at the beginning of 2019. This information puts the coffee and doughnut shop in a competitive edge against most food joints offering similar products.
The Dunkin’ Donuts Online University
Unlike other franchising opportunities, investing in the Dunkin’ Donuts brand means gaining access to the company’s online university. Known as the Dunkin’ Donuts Online Training or Dunkin’ University, it’s a training program intended for managers. Potential franchise owners may also take part in the six-week course to learn more about how to serve the popular dishes of this coffee and doughnut joint.
Learners of this course can expect to gain knowledge about several topics, from the history of the company to the precise methods of preparing its food. Course options may vary depending on the current or desired position.
While owning a Dunkin’ Donuts location may give you numerous advantages and opportunities, it’s important to understand that this business endeavor won’t make you rich overnight. Know the disadvantages of investing in a Dunkin’ Donuts franchise to set your expectations straight. Also, understanding the cons may also help you think of actionable strategies to minimize operational mishaps.
Time Spent on Application Approval
Specific business opportunities may only require you to wait for about a few weeks or months for the approval (or denial) of your application. In the case of Dunkin’ Donuts, the average waiting time to get information regarding the approval of the application is between 8 to 15 months.
No Available Financing Options
Dunkin’ Donuts does not provide financing options to hopeful franchisees. Still, that notion only applies to the company. It can lead you to the right direction as Dunkin’ Donuts has a list of preferred lenders to help potential franchisees in acquiring reasonable and flexible financing options.
The Possibility of Fewer Products Offered
Dunkin’ Donuts owns the Baskin-Robbins name. Still, not all establishments under this ice cream and cake brand qualify for this option. While specific Dunkin’ Donuts locations offer products from both food specialty stores, not all franchisees can grab this opportunity. Hence, it means fewer products on the menu.
If you’re still planning to open a Dunkin’ Donuts franchise, it’s vital to secure all or most of the requirements before applying. You should also know specific pieces of information like cost breakdowns, royalty fees, and local and international advertising charges.