Duck Donuts Franchise Cost, Revenue & Review 2026
- Investment
- $394K – $629K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 20.5%
- on 97 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Duck Donuts is a quick-service franchise serving made-to-order, warm cake donuts with custom coatings and toppings, plus coffee. Franchisees run shops managing on-site donut production and counter service.
FranchiseVerdict summary · 2026
A Duck Donuts franchise requires a total initial investment of $394K – $629K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 20.5% charge-off rate across 97 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $394K – $629K
- 63rd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 146
- 79th pct Service Resta…
- SBA charge-off
- 20.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $394K – $629K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 discloses Gross Sales quartile averages (top 25%, middle 50%, bottom 25%) for 105 franchised + 1 affiliate-owned outlet open the full 2025 calendar year; the top-quartile figure in the source document is printed as "$792,9892.45," treated here as a typo for $792,989.45. No single overall average gross sales, median, high/low figures, or net income figures were disclosed.
- RISKVerdict B (Above average), verdict score 49/100 (higher is better). SBA loan charge-off rate of 20.5% across 97 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +2 franchised outlets in the latest year (23 opened, 14 closed); 23 signed but not yet open (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Duck Donuts Holdings, LLC
- Parent company
- NSF Duck, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Duck Donuts Franchising Company, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer & Chief Financial Officer
- Devon Mailey
- Incorporated in
- Delaware
- HQ
- 261 West Chocolate Avenue, Hershey, Pennsylvania 17033
- Auditor
- Martin M. Sacks & Associates, CPAs
- Audited financials
- Franchisor revenue
- $346K
- vs $374K prior year
Affiliated brands
- Duck Donuts IP
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Devon Mailey
- Headquarters
- Pennsylvania
- FDD year
- 2026
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee1 | $40K | $40K | |
| Your Training Expenses2 | $0 | $3K | |
| Premises Deposits3 | $3K | $5K | |
| Professional Design | $12K | $19K | |
| Leasehold Improvements4 | $169K | $321K | |
| Signage | $8K | $14K | |
| Furniture, Fixtures, Equipment 5 | $90K | $117K | |
| Computer Systems6 | $15K | $20K | |
| Initial Inventory7 | $7K | $10K | |
| Grand Opening Marketing8 | $13K | $15K | |
| Professional Fees9 | $750 | $5K | |
| Licenses and Permits10 | $100 | $2K | |
| Insurance11 | $3K | $5K | |
| Operating Expenses / Additional Funds – 3 months12 | $35K | $55K | |
| Total initial investment | $394K | $629K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $394K – $629K
- Middle of category vs category
- Liquid capital req'd
- $35K – $55K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $20K |
| Renewal fee | $8K |
| Inventory (initial) | $7K – $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Duck Donuts is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Duck Donuts unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 discloses Gross Sales quartile averages (top 25%, middle 50%, bottom 25%) for 105 franchised + 1 affiliate-owned outlet open the full 2025 calendar year; the top-quartile figure in the source document is printed as "$792,9892.45," treated here as a typo for $792,989.45. No single overall average gross sales, median, high/low figures, or net income figures were disclosed.
- Item 19 type
- gross sales quartiles
- Quartile band
- $306K→$793K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Item 19 · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Item 19 detail
Item 19 discloses Gross Sales quartile averages (top 25%, middle 50%, bottom 25%) for 105 franchised + 1 affiliate-owned outlet open the full 2025 calendar year; the top-quartile figure in the source document is printed as "$792,9892.45," treated here as a typo for $792,989.45. No single overall average gross sales, median, high/low figures, or net income figures were disclosed.
By quartile
| Segment | Sample (outlets) | Avg |
|---|---|---|
| Top 25% Performers | 25 outlets | $793K |
| Middle 50% Performers | 49 outlets | $467K |
| Bottom 25% Performers | 25 outlets | $306K |
single unit
| Segment | Sample (outlets) | Avg |
|---|---|---|
| Affiliate-Owned Outlet | 1 outlet | $799K |
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 9.0% CAGR over 3 years across 146 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Duck Donuts Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 146
- Opened
- 23
- Last reporting year
- Closed
- 14
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 12.6%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +9.0%
- Net unit change over 3 years
- 3-yr CAGR
- +9.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 6
- Not renewed
- 0
- Transferred
- 16
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 23
- 0.16 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 27 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.
27
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 97
- Loan volume
- $38.7M
- Median loan
- $390K
- 50th percentile
- Charge-off rate
- 20.5%
- on 97 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 79.5%
- 5-yr charge-off
- 40.0%
- Loans approved 2021+
- Active lenders
- 41
- Defaults
- 8
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 1,943
- 5.0 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 78% went to startups / new businesses, 22% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Duck Donuts charge-off rate by loan vintage
Top lenders financing Duck Donuts franchisees
Showing 3 of 41 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Duck Donuts from SBA 7(a) FOIA data.
- Principal loss rate
- 2.6%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 8.09%
- Avg chargeoff amount
- $128K
- Lender concentration
- 16.5%
- Job velocity
- 5.0 per $100K
- Startup risk premium
- -44.2pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 1,943
Top SBA lendersTop lender holds 16% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Commonwealth Bank | 16 | $5.3M | 0.0% |
| 2 | The Huntington National Bank | 9 | $2.9M | N/A |
| 3 | Cadence Bank | 7 | $2.7M | 0.0% |
| 4 | Ameris Bank | 4 | $1.3M | 25.0% |
| 5 | ConnectOne Bank | 4 | $2.4M | N/A |
| 6 | Byline Bank | 4 | $2.6M | N/A |
| 7 | First Bank of the Lake | 4 | $2.2M | N/A |
| 8 | Stearns Bank National Association | 3 | $845K | 0.0% |
| 9 | Wilmington Savings Fund Society FSB | 3 | $1.4M | 33.3% |
| 10 | Stock Yards Bank & Trust Company | 3 | $200K | 66.7% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| VAVirginia | 15 | 3 | 50.0% |
| PAPennsylvania | 11 | 1 | 16.7% |
| SCSouth Carolina | 9 | 0 | 0.0% |
| TXTexas | 8 | 1 | 25.0% |
| NJNew Jersey | 7 | 0 | 0.0% |
| FLFlorida | 6 | 0 | 0.0% |
| NCNorth Carolina | 6 | 0 | 0.0% |
| GAGeorgia | 5 | 0 | 0.0% |
| NYNew York | 4 | 0 | -- |
| KYKentucky | 3 | 2 | 66.7% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 20.5% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 20.5% — 28% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Duck Donuts presents moderate-to-caution risk due to regulatory violations, missing profitability data, and corporate financial uncertainty, offset somewhat by protected territory and reasonable royalty structure.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
California Department of Financial Protection and Innovation Consent Order (Jan 2022) resolving claims of California Franchise Investment Law violations (Google click ads; offering franchise while Disclosure Document not registered); Duck Donuts paid a $5,000 penalty without admitting fault.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Martin M. Sacks & Associates, CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 49 / 100 verdict
- 01MINORNo net income disclosure (Item 19) prevents ROI verification on $537k average revenue
- 02MINORCalifornia regulatory violation in 2022 for operating without registration and deceptive advertising practices
- 03MINORModest unit growth of 7.5% YoY suggests slowing expansion momentum in competitive QSR market
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Cumberland County, Pennsylvania |
| Jury trial waiver | No |
| Governing law | Pennsylvania |
| Litigation count | 1 |
View Item 3 litigation summary
California Department of Financial Protection and Innovation Consent Order (Jan 2022) resolving claims of California Franchise Investment Law violations (Google click ads; offering franchise while Disclosure Document not registered); Duck Donuts paid a $5,000 penalty without admitting fault.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 60 hrs
- Training location
- Hershey, Pennsylvania
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- ParTech Brink POS / Grubbrr self-order kiosk
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ParTech Brink POS / Grubbrr self-order kiosk
Item 20 · call current owners
Franchisee Contacts
166 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Duck Donuts franchise?
The total investment to open a Duck Donuts franchise ranges from $394K – $629K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Duck Donuts franchise owners earn?
Item 19 of the Duck Donuts FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Duck Donuts?
Duck Donuts is franchised by Duck Donuts Holdings, LLC. Its parent company is NSF Duck, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Duck Donuts FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Duck Donuts FDD and qualifies whose outlets they describe.
What is Duck Donuts's franchise failure rate?
Based on SBA 7(a) loan data, Duck Donuts has a charge-off rate of 20.5% across 97 loans, meaning 20.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Duck Donuts franchise locations are there?
As of their most recent FDD filing, Duck Donuts has 146 total units in the United States, including 145 franchised units and 1 company-owned units. 23 new units were opened in the latest reporting year.
Is Duck Donuts a good franchise to buy?
FranchiseVerdict rates Duck Donuts as a B-grade franchise with a verdict score of 49 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.