Parlor Doughnuts
Bottom line
- Total investment $437K – $808K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $855K/year (median $838K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 48 loans (below the industry average).
- System growing at 500.0% CAGR over 3 years with 63 total units — strong expansion trajectory.
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 Parlor Doughnuts unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Parlor Doughnuts units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$855K
on $4.3M purchase
Total debt
$3.4M
SBA $2.1M + senior + seller note
Overview
About
Franchisees operate specialty doughnut retail shops, managing daily production/baking, customer service, POS operations, inventory management, and local marketing. They handle staffing, food costs, rent, utilities, and other operational expenses while paying 5% royalties on weekly gross sales to the franchisor.
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 20 · 17 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Parlor Doughnuts presents moderate-to-caution risk: aggressive growth from small base, undisclosed profitability metrics, and going concern status raise questions about franchisor stability and realistic franchisee returns.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot verify profitability claims or ROI timeline
- 02HIGHGoing Concern = False suggests potential financial instability or recent restructuring at franchisor level
- 03MINORHigh investment range ($437k-$808k) with only $855k average revenue creates tight margin for profitability
- 04MINOR86.2% YoY unit growth is strong but from small base (63 units) — system scale and sustainability unproven
- 05MINOR5% royalty + operating costs could easily consume 60-75% of gross revenue, leaving minimal net profit
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
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Parlor Doughnuts · FDD (2025) PDF