Parlor Doughnuts Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Parlor Doughnuts is a specialty coffee-and-doughnut franchise known for its layered doughnuts and full breakfast menu. Franchisees run the shops, managing baking, coffee service, staffing, and takeout.
FranchiseVerdict summary · 2026
A Parlor Doughnuts franchise requires a total initial investment of $437K – $808K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $437K – $808K
- 70th pct Service Resta…
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 63
- 70th pct Service Resta…
- SBA charge-off
- 0.0%
- % 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 avg · 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 $437K – $808K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSTotal net revenues of $3,692,819 (FY2024) comprised franchise fees and royalties of $2,645,495 and merchandise and materials of $1,047,324. Other operating income (vendor rebate income) of $173,281 is reported separately.
- RISKVerdict A (Strongest tier), verdict score 65/100 (higher is better). SBA loan charge-off rate of 0.0% across 22 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 500.0% CAGR over 3 years with 63 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Parlor Doughnuts Franchising, LLC
- CEO title
- Founder and Chief Executive Officer
- Darrick Hayden
- Incorporated in
- Indiana
- HQ
- 204 Main Street, Suite D, Evansville, IN 47708
- Auditor
- Harding, Shymanski & Company, P.S.C.
- Audited financials
- Franchisor revenue
- $3.7M
- vs $2.8M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Darrick Hayden
- Headquarters
- IN
- Founded
- 2021
- FDD year
- 2025
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Opening Inventory - Boxes, Cups, Food, Coffee, Supplies | $25K | $35K | |
| Opening Inventory - Merchandise for Sale (mugs, shirts, stickers, glasses, hats, etc.) | $7K | $14K | |
| Lease and Utilities | $7K | $15K | |
| Security Deposit | $7K | $15K | |
| Design Professional Fees (Drawings for Permitting or Construction) | $10K | $30K | |
| General Contractor Fees | $25K | $50K | |
| Build-out of Approved Location (Second Generation) | $125K | $250K | |
| Signage | $10K | $25K | |
| Furniture, Fixtures, and Decor | $25K | $55K | |
| Equipment | $120K | $190K | |
| Initial Training (including Your Travel Expenses) | $2K | $9K | |
| Pre-Opening and Grand Opening Advertising and Marketing | $5K | $10K | |
| Legal and Accounting Fees Related to Startup Assistance | $2K | $5K | |
| Computer System and Required Hardware and Operating System plus Recommended Security Systems | $4K | $10K | |
| Drive Thru Window and Digital Menu (Optional) | $20K | $30K | |
| Insurance (quarterly estimate) | $3K | $5K | |
| Additional Funds for Initial Three Months | $20K | $50K | |
| Total initial investment | $457K | $838K |
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
- $437K – $808K
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Training fee | $2K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $25K – $35K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Parlor Doughnuts did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Parlor Doughnuts unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
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: 2025 FDD
Financial Performance
Total net revenues of $3,692,819 (FY2024) comprised franchise fees and royalties of $2,645,495 and merchandise and materials of $1,047,324. Other operating income (vendor rebate income) of $173,281 is reported separately.
Includes company-owned outlets
- Item 19 type
- monthly avg gross sales
- Sample size
- 50
- vs category median 20 · large
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
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 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports monthly avg gross sales rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 500.0% CAGR over 3 years across 63 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 averages
How Parlor Doughnuts Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 63
- Opened
- 25
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 52
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $11.5M
- Median loan
- $507K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 0
- Typical loan rate
- 9.3%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 632
- 5.5 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% 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.
Top lenders financing Parlor Doughnuts franchisees
Showing 3 of 13 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.
Premium insight
SBA Lending Report
Deep-dive into Parlor Doughnuts's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 22 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower 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
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.
Litigation (Item 3)
No litigation required to be disclosed.
Largest disclosed settlement: $40,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Harding, Shymanski & Company, P.S.C.
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Vanderburgh County, Indiana |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 168 hrs
- Training location
- Corporate shops (Evansville, IN), virtual, and franchisee location
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 10 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Parlor Doughnuts · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Parlor Doughnuts franchise?
The total investment to open a Parlor Doughnuts franchise ranges from $437K – $808K, 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 Parlor Doughnuts franchise owners earn?
Parlor Doughnuts does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Parlor Doughnuts 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 Parlor Doughnuts FDD and qualifies whose outlets they describe.
What is Parlor Doughnuts's franchise failure rate?
Based on SBA 7(a) loan data, Parlor Doughnuts has a charge-off rate of 0.0% across 22 loans, meaning 0.0% 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 Parlor Doughnuts franchise locations are there?
As of their most recent FDD filing, Parlor Doughnuts has 63 total units in the United States, including 54 franchised units and 9 company-owned units. 25 new units were opened in the latest reporting year.
Is Parlor Doughnuts a good franchise to buy?
FranchiseVerdict rates Parlor Doughnuts as a A-grade franchise with a verdict score of 65 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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?
If you represent Parlor Doughnuts, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.