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DP Dough

Other Restaurants · 2024 FDD

D.P. Dough franchises offer calzones, desserts, wings, and other food items in independently operated restaurants under the D.P. Dough brand. Known for quick-serve Italian cuisine, it operates in the fast-casual restaurant sector.

$120,980 – $359,910
Total investment
$40,000
Franchise fee
58
Systemwide units
5%
Royalty
$100,000
Net worth req.
10 yrs
Agreement term

About DP Dough

Founded1987
HeadquartersColumbus

D.P. Dough is an American chain of calzone restaurants started in Amherst, Massachusetts, and now headquartered in Columbus, Ohio. D.P. Dough restaurants are located in twenty-seven college towns across the United States, offering late-night food delivery primarily marketed to local student populations.

Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)

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DP Dough franchise FAQ

How much does it cost to open one — the total initial investment?

The total initial investment to begin operation of a D.P. Dough franchise ranges from $120,980 to $359,910, which includes a mandatory payment of $40,000 to the franchisor or affiliate as stated on [p.1].

What is the initial franchise fee?

The initial franchise fee is $40,000 and it is not refundable [p.25, p.13, p.14].

What are the ongoing royalty and advertising fees?

The ongoing royalty fee is based on a percentage of sales, varying depending on when each franchisee opened their business [p.20]. It is due by the 15th of the following month and is recognized weekly or monthly [p.135]. Additionally, there's an advertising fee of 1% of net sales, which can be increased to a maximum of 3%, payable at the same time as the royalty fee [p.20]. Both fees incur late payment penalties if not paid on time [p.20].

How long is the initial franchise agreement, and can I renew it?

The initial franchise agreement term is ten (10) years [p.85]. You have the option to renew it for another ten (10) year term if you do not materially breach your franchise agreement [p.21; p.85].

Can I sell or transfer my franchise, and what does that require?

Yes, you can sell or transfer your franchise. However, the proposed transferee must execute appropriate transfer or assignment forms containing terms satisfactory to Calzone King [p.96]. Additionally, if the transferee is not a D.P. Dough franchisee or owned more than 50% by one, there will be a $5,000 transfer fee; otherwise, it's $3,000 [p.21]. Calzone King may require the transferee to sign the current version of the Franchise Agreement, which could include higher royalty rates or fees [p.96].

On what grounds can the franchisor terminate the agreement?

The franchisor may terminate the agreement on any grounds available by law, as stated in [p.68] and [p.107].

What financial requirements — net worth and liquid capital — do I need to qualify?

According to [p.91], you need sufficient Opening Funds or liquid capital to obtain Opening Funds from a lender, and you must provide true and accurate documentation of your financial status. There is no specific mention of minimum net worth requirements in the provided excerpts for franchise qualification.

Do I get an exclusive or protected territory?

Yes, you will receive an exclusive territory, generally within a radius of three miles of your Restaurant, based on population density [p.39]. This means you are prohibited from soliciting orders from consumers in another franchisee's protected Territory [p.39].

What training and ongoing support does the franchisor provide?

The franchisor provides a comprehensive training program that includes 7 to 17 days of in-store 'immersion' training at an approved D.P. Dough location, online training consisting of approximately twenty classes, and on-site training for at least seven days at your restaurant [p.37, p.79]. Additionally, ongoing support is provided through a Continuing Franchise Royalty, though the specific rate varies based on when the franchisee opened their business [p.20].

How many franchised outlets are there, and how many have closed or been terminated?

The FDD indicates that as of the end of 2024, there were 22 locations that were open but not included in the Reporting Restaurants. These 22 locations had either not been open for a full 24-month period, were closed early, or violated the system standards without approval from the franchisor [p.52]. This isn't specified in the excerpts regarding the total number of franchised outlets currently operational or any closures beyond these 22 specific cases.

Does the franchisor share any financial performance or earnings information?

Yes, the franchisor shares financial performance information for a subset of its restaurants. Specifically, it provides data from 49 out of 58 D.P. Dough franchised units in operation during 2024 [p.52]. However, this information can be supplemented or differ from that included in Item 19 only if the franchisor either provides actual records of an existing outlet or supplements the information for a particular location or circumstances [p.52].

What am I restricted to selling, and where must I buy supplies?

You are not specifically restricted to selling any particular items, but the franchise agreement may prohibit operating a similar business during the term of the franchise [p.39]. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.4]. Future supply requirements will be communicated through the Operating Manual and System [p.27].