Dunkin Donuts Franchise Cost & 2026 FDD Data
76/100
Strongest tier
76 this brand51 Quick-Service Restaurants medianlikely 72–80 (high confidence)
Higher is better · an editorial assessment, not investment advice
#276 of 3,068 graded brands
Why an A: Helped by financial health, unit growth, scale, legal record and transparency. Held back by unit economics. See all six factors
- Total investment
- $532K – $1.8M
- excl. real estate
- Avg gross sales
- $1.4M
- “All 2025 Franchised Restaurants”, 7,010 outlets; not profit
- SBA charge-off
- 7.5%
1 in 13 SBA 7(a) loans to Dunkin Donuts owners charged off (75 of 999 resolved loans, approved since FY1991); Quick-Service Restaurants median 17.6%. Loans approved FY2014–FY2023: 2 of 137 resolved loans charged off (1.5%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Dunkin Donuts franchise requires a total initial investment of $532K – $1.8M, excluding real estate, including a $40K – $90K franchise fee. Once open, the ongoing royalty is 5.9%. Per the 2026 FDD, average gross sales were $1.4M (Item 19 group “All 2025 Franchised Restaurants”, 7,010 outlets; gross sales, not profit). SBA 7(a) loans show a 7.5% charge-off rate on 999 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $1.4M/year (outlet median $1.3M; Item 19 group “All 2025 Franchised Restaurants”, 7,010 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 279 (314 opened, 81 closed; other Item 20 movements account for the remaining 46).
- LEGAL19 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 13 name the franchisor or its predecessor, 2 its parent or affiliates. Pending claims are allegations, not findings.
AT STAKEOne unit at the Item 7 midpoint: $153K a year in payments on assumed SBA 7(a)-style terms.You put in about $236K of your own cash and personally guarantee a $946K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- 7 pending matters name the franchisor in Item 3 (litigation). Pending claims are allegations, not findings; for a system this size the score counts the legal record in the brand's favour. Read the matter in Item 3.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, SBA charge-off rate 7.5%, below the 17.6% category median, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 7,010 units. Not on file here, so ask: jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Dunkin Donuts owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.4× the Quick-Service Restaurants median ($487K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Dunkin' Donuts Franchising LLC (Item 1: Three Glenlake Parkway, Atlanta, Georgia 30328) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (first 3 months) | $0 | $108K |
| Equipment, build-out, other | $492K | $1.7M |
| Total initial investment | $532K | $1.8M |
Source: Dunkin Donuts 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.9% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology feesRestaurant Technology System equipment costs $65,000 to $118,000 (Item 7); Center Annual Subscription Fee currently $340 per Restaurant annually (Item 6) | See the list |
| Transfer fee | $12,500 |
| Total fee loadabove the Quick-Service Restaurants median of 7.0% (heavy) | 10.9% of sales |
What do units actually make?
Average gross sales are 44% above the Quick-Service Restaurants median ($950K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Dunkin Donuts unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $1.4M (FDD p.97), and the royalty and ad fund take about $150K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $153K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $1.2M Item 7 midpoint is a $946K loan, paid over 10 years at 10.5%: $153K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Dunkin Donuts' past SBA 7(a) loans averaged 5.6% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $236K Assumption (the part the loan does not cover of the $1.2M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $946K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Dunkin Donuts unit leave you each year after the loan payment?
Item 19: $1,372,069 average for 7,010 outlets (All 2025 Franchised Restaurants). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $532K to $1.8M
Item 7's $0 to $108K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $946K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Dunkin' Donuts Franchising LLC
Financial performance
- Range (low → high)
- $65K→$6.0MSource: 2026 FDD, page 97
- Cohort dispersion (min → max)
- Top and bottom 25%
- $718K→$2.2M
- Bottom group → top group: the top and bottom 25% as the filing reports them
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
vs Quick-Service Restaurants medians
How Dunkin 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.
Who are you contracting with?
Dunkin' Donuts Franchising LLC, owned by Dunkin' Brands, Inc.
Item 21 (audited financials) · audited statements · 2026 FDD
The franchisor's own finances
The franchisor paid out about 111% of its latest net income as dividends. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $732.9Mlatest year · FDD Item 21
- Dividends paid
- $813.3M111% of net income (our arithmetic) · FDD p.128
- Total assets
- $1.6BFDD Item 21
- Equity
- $1.3BFDD Item 21
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Dunkin' Donuts Franchising LLC
- Parent company
- Dunkin' Brands, Inc.
- FDD Item 1, page 12 of the 2026 FDD
- Ultimate parent
- Inspire Brands, Inc.
- FDD Item 1, page 12 of the 2026 FDD
- Incorporated in
- Delaware
- HQ
- Three Glenlake Parkway, Atlanta, Georgia 30328
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $1.4B
- latest fiscal year in the 2026 FDD; $1.4B the year before
Same owner · FDD Item 1, page 12
6 other brands on this site name Inspire Brands, Inc. as parent or ultimate parent in their own FDD.
- Arby’s (grade B)
- Baskin-Robbins (grade B)
- Buffalo Wild Wings (grade B)
- Buffalo Wild Wings GO (grade A)
- Jimmy John's (grade A)
- Sonic (grade B)
Portfolio: Inspire Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Franchisor of Dunkin' restaurants featuring donuts, coffee, espresso, bagels, muffins, croissants, other bakery items, breakfast sandwiches, and other food and beverage products, including Combo Restaurants co-branded with Baskin-Robbins and Multi-Brand Locations with Arby's, Buffalo Wild Wings, Jimmy John's, and Sonic
Is the system healthy?
+479 franchised outlets over the two years to 2025 (8,265 to 8,744, +5.8% in total, +2.9% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 36
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 8,265 in 2023 to 8,744 in 2025
Axis does not start at zero.
Source and method
Reacquisitions and outlets moved to or from company ownership also change the count, so opened minus closed differs from the change.
Item 20 (outlet counts) outlets · 44 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 43 states and DCNo current outlet
9,643 current outlets in 44 states: the 9,643 on the owner list, of 8,744 franchised at year end (Item 20), run by 6,518 franchisee companies.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 7.5% of 999 resolved SBA 7(a) loans, below the 17.6% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 1,341
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $782.5M
- Average loan
- $584K
- loan volume divided by loans
- Charge-off rate
- 7.5%
- 75 of 999 resolved loans
- Paid in full
- 91.7%
- of resolved loans
- Charge-off, loans approved FY2014–FY2023
- 1.5%
- 2 of 137 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 121
- Average interest rate
- 5.6%
- Jobs reported
- 12,687
- Lender concentration
- 21%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Quick-Service Restaurants brand charges off 17.6% (175 brands with a published rate, same cumulative window and source). This brand is 10.1 points below it.
The approval-year breakdown covers 999 resolved loans and 75 of the 75 charge-offs (FY1992 to FY2023).
SBA 7(a) · charge-off rate by approval year
Dunkin Donuts: below all franchise loans in 26 of 27 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge; recent years are too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1992 | 8 | 0 | Too few |
| 1993 | 18 | 1 | 5.6% |
| 1994 | 22 | 0 | 0.0% |
| 1995 | 31 | 3 | 9.7% |
| 1996 | 39 | 3 | 7.7% |
| 1997 | 52 | 5 | 9.6% |
| 1998 | 35 | 2 | 5.7% |
| 1999 | 46 | 4 | 8.7% |
| 2000 | 26 | 1 | 3.8% |
| 2001 | 31 | 2 | 6.5% |
| 2002 | 58 | 3 | 5.2% |
| 2003 | 65 | 12 | 18.5% |
| 2004 | 75 | 11 | 14.7% |
| 2005 | 103 | 15 | 14.6% |
| 2006 | 28 | 1 | 3.6% |
| 2007 | 35 | 3 | 8.6% |
| 2008 | 21 | 3 | 14.3% |
| 2009 | 27 | 2 | 7.4% |
| 2010 | 34 | 1 | 2.9% |
| 2011 | 38 | 1 | 2.6% |
| 2012 | 41 | 0 | 0.0% |
| 2013 | 29 | 0 | 0.0% |
| 2014 | 29 | 0 | 0.0% |
| 2015 | 31 | 0 | 0.0% |
| 2016 | 20 | 0 | 0.0% |
| 2017 | 7 | 1 | Too few |
| 2018 | 9 | 0 | Too few |
| 2019 | 11 | 0 | 0.0% |
| 2020 | 12 | 0 | 0.0% |
| 2021 | 11 | 1 | 9.1% |
| 2022 | 4 | 0 | Too early |
| 2023 | 3 | 0 | Too early |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Top lenders financing Dunkin Donuts franchisees Each lender’s rate counts only its own resolved loans; a 0.0% often means few of that lender’s loans have been resolved, not that none will fail. A lender with fewer than 10 resolved loans reads “Too few”.
Showing 3 of 121 lenders. The full SBA lending report below lists the top 10 by loan count, with states and the yearly trend.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What are the risks?
Main risk in the grade: unit economics. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 76/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive; dividends paid equal to 111% of net income (Item 21; shown, not scored)
- Unit economics Weighs on it, weakest dimensionAvg gross sales $1.4M on a $1.2M investment midpoint, 1.2x (gross sales, not profit)
- Unit growth Helps+479 franchised outlets over the two years to 2025 (8,265 to 8,744, +5.8% in total, +2.9% a year compounded); turnover 0.9%
- Scale Helps8,744 franchised units, +36 company-owned (8,780 in all); franchising since 1955
- Legal Helps13 matters naming the franchisor among the Item 3 matters we list (0.1 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 discloses 4 pending cases (Minda's Donuts wrongful-termination suit in NH; Dunkin'/BR v. Shree Krishna Donuts trademark/breach counterclaim in NJ; multiple related Phoenix Food (Pvt) Ltd. Pakistan suits over a terminated master development agreement; Fahrad Salari Lak bakery-supply dispute in PA dating to 2011), 3 arbitration/IP matters commenced by Dunkin' against franchisees/infringers, and numerous concluded matters (Shetty discrimination suit, Airport Mart breach/fraud suit, Coffee & Brands Sweden AB arbitration, Newburyport Donuts arbitration, California and New York AG actions re no-poaching provisions and data-breach notification respectively, Ram Donuts trademark/breach litigation settled for $110,000). No bankruptcy disclosed.
Largest disclosed settlement in the franchisor's own cases: $110,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Litigation case detail19 matters · Item 3
Litigation cases
The franchisor
Pending (7)
Dunkin Donuts Franchising, LLC and Baskin Robbins Franchising LLC v. Shree Krishna Donuts, Inc. and Dilruba Choudhury
pendingBrought against a franchisee · filed 2026-01-16 · U.S. District Court for the District of New Jersey · 2:26-cv-00548-MCA-AME
“… (Case No. 2:26-cv-00548-MCA-AME), U.S. District Court for the District of New Jersey, filed on January 16, 2026. We (together with our affiliate BR) filed a Complaint and Motion for Temporary Restraining Order against a franchisee (and its guarantor/owner)”Page 26 of the 2026 FDD, Item 3
Outcome: “Defendants/counter-plaintiffs also seek dismissal of our and BR’s claims. This matter is in the preliminary stages of litigation, and we and BR intend to vigorously defend against the counterclaims.” (page 27)
Minda’s Donuts, Inc. v. Dunkin’ Donuts Franchising LLC
pendingBrought by a franchisee · filed 2026-01-16 · U.S. District Court for the District of New Hampshire · 1:26-cv-00016-TSM
“… (Case No. 1:26-cv-00016-TSM), U.S. District Court for the District of New Hampshire, filed on January 16, 2026. The plaintiff is a current multi-unit franchisee who previously operated a Dunkin’ Restaurant at the Colby Corner shopping center in East Hampstead, New Hampshire under a franchise agreement with us.”Page 26 of the 2026 FDD, Item 3
Outcome: “This matter is in the preliminary stages of litigation, and our Answer is currently due on April 3, 2026.”
Phoenix Foods (Pvt) Limited v Dunkin Donuts Franchising LLC and DD IP Holder LLC
pendingBrought by a franchisee · filed 2024-11-25 · Civil Judge/Special Court Admin For Commercial Cases, Lahore (Pakistan) · Civil Suit 43030 of 2024
“… (Civil Judge/Special Court Admin For Commercial Cases, Lahore, Civil Suit 43030 of 2024, filed on November 25, 2024). In this case, the plaintiff challenged the termination of the MUDFA and plaintiffs seek damages in the amount of US$5,000,000.”Page 27 of the 2026 FDD, Item 3
Outcome: “The plaintiff has not filed a demand for arbitration or an appeal of the court’s order staying this case. This case remains stayed.”
Phoenix Foods (Pvt) Limited v Dunkin Donuts Franchising LLC and DD IP Holder LLC (No. Civil Suit 43710 of 2024)
pendingBrought by a franchisee · filed 2024-11-28 · Civil Judge/Special Court Admin For Commercial Cases, Lahore (Pakistan) · Civil Suit 43710 of 2024
“Phoenix Foods (Pvt) Limited v Dunkin Donuts Franchising LLC and DD IP Holder LLC (Civil Judge/ Special Court Admin For Commercial Cases, Lahore, Civil Suit 43710 of 2024, filed on November 28, 2024). In this case, the plaintiff challenged the termination of the MUDFA and seeks a declaration from the court that the MUDFA is valid until 2036.”Page 27 of the 2026 FDD, Item 3
Outcome: “On July 16, 2025, the court entered an order granting us our application and stayed the case.”
DD IP Holder LLC and Dunkin Donuts Franchising LLC v Phoenix Foods (Pvt) Limited
pendingBrought against a franchisee · filed 2023 · Intellectual Property Tribunal, Lahore, Pakistan · Suit No. 99/IPT/2023 (appeal: Lahore High Court FAO 64740 of 2025)
“… (Intellectual Property Tribunal, Lahore, Pakistan, Suit No. 99/IPT/2023, filed in 2023). We and our affiliate brought this case against Phoenix for trademark infringement relating to two Dunkin’ Restaurants in Pakistan that Phoenix continued to operate under our (or our affiliate’s) trademarks”Page 27 of the 2026 FDD, Item 3
Outcome: “On September 23, 2025, the IP Tribunal granted our motion for an injunction against Phoenix. Phoenix then filed an appeal, which is now pending under the following case caption:”
Phoenix Food (Pvt) Limited v. Dunkin’ Donuts Franchising LLC and DD IP Holder LLC
pendingBrought by a franchisee · filed 2023-07-25 · Court of Senior Civil Judge, Lahore (Pakistan) · Suit No. 33938 of 2023
“… (Court of Senior Civil Judge, Lahore; Suit No. 33938 of 2023; filed July 25, 2023). A Dunkin’® franchisee in Pakistan, Phoenix Food (Pvt) Limited, (“Phoenix”), filed this action in Pakistan alleging breach of contract due to our decision not to extend the expired term”Page 27 of the 2026 FDD, Item 3
Outcome: “on December 4, 2024, the court entered an order granting us our application and staying the case.”
Fahrad Salari Lak, Lock Bakeries, Incorporated and F and J Holdings, Inc. v. Dunkin’ Donuts Franchising LLC, et al.
pendingfiled 2011-09-28 · Court of Common Pleas of Allegheny County, Pennsylvania · GD 09 13755
“… (Case No. GD 09 13755), Court of Common Pleas of Allegheny County, Pennsylvania, filed on September 28, 2011. This dispute involves contracts to supply bakery products to a Dunkin’ network of restaurants in the Pittsburgh market.”Page 28 of the 2026 FDD, Item 3
Outcome: “No trial date has been set. Defendants deny the claims alleged by Fahrad Plaintiffs and intend to vigorously defend the case.”
Concluded (4)
Ram Donuts Inc. v. Dunkin’ Donuts Franchising LLC, et al.
settledBrought by a franchisee · filed 2022-09-15 · United States District Court for the District of Arizona (removed from Pima County, Arizona state court) · 22-CV-00433-TUC-LCK and 22-CV-0455-TUC-JCH (consolidated)
“… (United States District Court for the District of Arizona, Case Nos. 22-CV-00433-TUC-LCK and 22-CV-0455-TUC-JCH). On September 15, 2022, a terminated franchisee, Ram Donuts, Inc. (“Ram Donuts”) filed a complaint in Pima County, Arizona state court against us and BR alleging breach of the franchise agreements,”Page 31 of the 2026 FDD, Item 3
Outcome: “On August 29, 2023, the parties entered into a Settlement Agreement and Release whereby the Dunkin’ and Baskin-Robbins entities agreed to pay Ram Donuts $110,000 in exchange for mutual releases and dismissal of the lawsuit with prejudice.”
Newburyport Donuts, Inc. v. Dunkin’ Donuts Franchising LLC, et al.
settledBrought by a franchisee · filed 2019-03-11 · American Arbitration Association · 01-19-0000-7393
“… (Case No. 01-19-0000-7393), American Arbitration Association, filed on March 11, 2019. Newburyport Donuts, Inc. (“Newberry”) contended that the defendants rejected their proposal for the development of a new Dunkin’ restaurant”Page 30 of the 2026 FDD, Item 3
Outcome: “On July 23, 2020, the parties agreed to settle all of their claims without any admission of liability on defendants’ part and the matter is now closed.”
Airport Mart, Inc. v. Dunkin’ Donuts Franchising LLC
settledBrought by a franchisee · filed 2018-01-09 · U.S. District Court for the Southern District of New York · 7:18-cv-00170
“… (Case No. 7:18-cv-00170) U.S. District Court for the Southern District of New York, filed on January 9, 2018. Airport Mart, Inc. (“Airport Plaintiff”) was a former Dunkin’ franchisee that brought suit against us regarding the development, operation, and termination of the franchise agreement”Page 29 of the 2026 FDD, Item 3
Outcome: “Following that ruling, the case was settled for a nominal amount on February 10, 2020, without any admission of liability on our part and the matter is now closed.”
Priti Shetty v. Dunkin’ Donuts Franchised Restaurants LLC, et al.
settledBrought by a franchisee · filed 2015-02-17 · U. S. District Court for the District of New Jersey · 3:15-cv-02664
“… (Case No. 3:15-cv-02664), U. S. District Court for the District of New Jersey, filed on February 17, 2015. Priti Shetty (“Shetty Plaintiff”), a former Dunkin’ franchisee, and two business partners entered into a Store Development”Page 28 of the 2026 FDD, Item 3
Outcome: “The case was settled on February 23, 2017, with the entire settlement amount paid by Dunkin’s insurance carrier and with no admission of liability by defendants.” (page 29)
Status not stated in the filing (2)
Dunkin’ Donuts Franchising LLC v. Tan Po Lian and PT Dunkindo Lestari
Brought against a franchisee · filed 2025-10-07 · American Arbitration Association · 01-25-0005-1763
“Litigation Commenced by Us in the Past Fiscal Year Against Franchisees Breach of Contract and Trademark Infringement Claims Dunkin’ Donuts Franchising LLC v. Tan Po Lian and PT Dunkindo Lestari (American Arbitration Association, Case No. 01-25-0005-1763, filed October 7, 2025).”Page 28 of the 2026 FDD, Item 3
Dunkin’ Donuts Franchising LLC v. Van der Valk Participaties B.V.
Brought against a franchisee · filed 2025-03-03 · American Arbitration Association · 01-25-0001-2138
“… (American Arbitration Association, Case No. 01-25-0001-2138, filed March 3, 2025).”Page 28 of the 2026 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
The People of the State of New York v. Dunkin’ Brands, Inc.
settledGovernment or regulatory action · Dunkin’ Brands, Inc. (one of the franchisor's parent companies per Item 1) · filed 2019-09-26 · New York Supreme Court · Index No. 451787/2019
“… (Index No., 451787/2019), New York Supreme Court, filed on September 26, 2019. The NY State Attorney General (“NYAG”) filed a lawsuit against Dunkin’ Brands related to credential stuffing attacks during 2015 and 2018”Page 30 of the 2026 FDD, Item 3
Outcome: “On September 22, 2020, the parties entered into a settlement under which Dunkin’ Brands agreed to communicate with certain DD Perks customers who lived in New York, to take certain data security measures and adopt certain investigative procedures regarding data security issues and pay the New York Attorney General’s Office $650,000 in penalties and costs.” (page 31)
Status not stated in the filing (1)
DD IP Holder LLC v Phoenix Foods (Pvt) Limited (principal defendant) and Dunkin Donuts Franchising LLC (proforma defendant under local law)
Brought against a franchisee · DD IP Holder LLC (Dunkin’ Donuts Franchising LLC named as proforma defendant) · filed 2025 · Intellectual Property Tribunal, Lahore · 295/IPT/2025
“… (Intellectual Property Tribunal, Lahore, Suit no. 295/IPT/2025, filed November 2025).”Page 28 of the 2026 FDD, Item 3
This list shows 15 of the 19 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 10.9% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | No |
|---|---|
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 5 mi |
| Right of first refusal | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Curable defaults | 4 |
| Mandatory arbitration | No |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 71 hrs
- On-the-job training
- 215 hrs
- Training location
- Certified Host Central Manufacturing Location (CML), Training Restaurant, or other designated Dunkin' Restaurant, plus online/virtual training
- Ongoing training
- Required
- Time to open
- 8–15 mo
- From signing to launch (FDD p.69)
- Site selection
- franchisor_approval
- Franchisor financing
- Not offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
9,643 current outlets listed, run by 6,518 franchisee companies
Each record has the franchisee (company or owner name as the filing prints it), phone number, city and state. 9,643 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list holds 9,643 current outlets; Item 20's table counts 8,744 franchised at year end.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Dunkin Donuts franchise?
Per the 2026 FDD, the total investment to open a Dunkin Donuts franchise ranges from $532K to $1.8M, with an initial franchise fee of $40K – $90K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do Dunkin Donuts franchise owners earn?
According to Item 19 of the Dunkin Donuts FDD, average gross sales were $1.4M (Item 19 group “All 2025 Franchised Restaurants”, 7,010 outlets; gross sales, not profit). The median is $1.3M. What an owner keeps depends on location, operating costs and management.
Who owns Dunkin Donuts?
Dunkin Donuts is franchised by Dunkin' Donuts Franchising LLC. Its parent company is Dunkin' Brands, Inc.. The ultimate parent named in the FDD is Inspire Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Dunkin 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 Dunkin Donuts FDD and qualifies whose outlets they describe.
What is Dunkin Donuts' franchise failure rate?
There is no published franchise failure rate. What is measurable is Dunkin Donuts' SBA charge-off rate: 7.5% on 999 resolved loans. Put plainly: 1 in 13 SBA 7(a) loans to Dunkin Donuts owners charged off (75 of 999 resolved loans, approved since FY1991); loans approved FY2014–FY2023: 2 of 137 resolved loans charged off (1.5%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Dunkin Donuts franchise locations are there?
Per the 2026 FDD, Dunkin Donuts has 8,744 franchised units and 36 company-owned (8,780 in all). In the latest year, the number of franchised outlets grew by 279 (314 opened, 81 closed; other Item 20 movements account for the remaining 46).
Is Dunkin Donuts a good franchise to buy?
FranchiseVerdict gives Dunkin Donuts an A Verdict grade (Strongest tier) with a verdict score of 76 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit growth, scale, legal record and transparency. Held back by unit economics (avg gross sales $1.4M on a $1.2M investment midpoint, 1.2x: gross sales, not profit). The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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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.