Parlor Doughnuts
Parlor Doughnuts offers craft doughnut and coffee shops with unique bakery items like Famous Layered Doughnuts™, vegan options, and specialty coffee. Known for upscale yet accessible environments, this franchise is part of the growing artisanal food and beverage sector.
Parlor Doughnuts franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of one PARLOR DOUGHNUTS® franchise ranges from $437,000 to $808,000 (excluding a drive-thru window and digital menu), as stated on page [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 for each franchised business. This amount must be paid upon execution of a Franchise Agreement [p.11].
What are the ongoing royalty and advertising fees?
Ongoing royalty and advertising fees are calculated as a percentage of weekly gross revenues from the franchised location for the preceding week. [p.158]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is typically for ten years [p.159]. You have the right to renew this Agreement at the expiration of the Initial Term by entering into a new agreement, which shall be in the Franchisor's then current form of Franchise Agreement for two 5-year periods [p.65].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the stated reasons for refusal.
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor may terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the Franchise Agreement and failing to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory which will be described and depicted in Exhibit A attached to the Franchise Agreement. This territory is based on community boundaries, population density, drive times, and distance, among other factors [p.34]. However, note that you are not permitted to solicit consumers outside of your designated Territory [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program that covers various aspects such as food preparation, customer service, community relations, communication, purchasing, policies, and marketing [p.31]. This training is conducted by certified trainers using operations and training manuals and can be delivered through a combination of in-person and virtual instruction at the company's headquarters or your franchised business [p.29, p.33]. Additionally, ongoing support includes periodic advice on operational methods, accounting procedures, authorized services or products, and marketing strategies via telephone, email, newsletters, etc., though this does not guarantee success [p.29].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it, and this information must be included in the disclosure document. Additionally, the franchisor may release financial and operational information as permitted by applicable franchise laws [p.47, p.81]. However, specific details about whether or not they share actual earnings data are not provided in these excerpts.
What am I restricted to selling, and where must I buy supplies?
You may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate [p.3], but you are not required to purchase all goods, supplies, inventories, or services exclusively from them if comparable quality options are available elsewhere [p.183]. You can sell authorized products and services to customers outside your territory, but only from the approved location [p.67].