Bottom line
- Total investment $173K – $450K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $433K/year (median $249K).
- Rated CAUTION with a risk score of 72/100.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Doughnuttery unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Doughnuttery units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$260K
on $1.3M purchase
Total debt
$1.0M
SBA $0.6M + senior + seller note
Overview
About
Doughnuttery franchisees operate quick-service doughnut retail shops, managing daily production, customer service, inventory control, and point-of-sale operations. Day-to-day activities include doughnut preparation, staffing management, local marketing, and meeting 6% gross sales royalty obligations to the franchisor while generating approximately $433k in annual revenue per unit.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Doughnuttery exhibits extreme risk due to going concern status, micro-scale unit count (4 units), undisclosed profitability metrics, and questionable franchisor financial health.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status indicates serious financial viability issues at franchisor level
- 02MINOROnly 4 units in system suggests minimal scale, unproven model, and high failure risk
- 03MEDNet income not disclosed despite $433k average revenue — potential profitability concerns or intentional opacity
- 04MINORWide investment range ($172.9k-$450.2k) with no clear explanation of variance drivers
- 05MEDNo disclosed unit growth trajectory — stagnant 4-unit system raises sustainability questions
- 06MINOR6% royalty on gross sales (not net) means franchisees pay even during loss months
- 07MINORExtremely small franchise system limits support infrastructure and peer learning opportunities
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Doughnuttery · FDD (2025) PDF