The Mini Donut CompanyFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Mini Donut Company franchise requires a total initial investment of $31K – $126K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $442K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $31K – $126K
- 2nd pct Service Resta…
- Avg gross sales
- $442K
- 6th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 5.6x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $31K – $126K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $442K/year.
- Verdict D (Below Average) with a risk score of 72/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Mini Donut Franchising LLC
- CEO title
- Founder and Chief Executive Officer
- Matt Whiffen
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 2865 State Street, San Diego, California 92103
- Auditor
- Class Advisors GP
- Audited financials
Overview
About
Franchisees operate retail donut shops (likely kiosks or small storefronts) specializing in mini donuts. Day-to-day operations include food preparation, inventory management, customer service, and point-of-sale transactions. Franchisees manage their own staffing, lease obligations, and local marketing within an unprotected territory.
- CEO
- Matt Whiffen
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $13K | $30K |
| Equipment, build-out, other | $0 | $66K |
| Total initial investment | $31K | $126K |
Source: The Mini Donut Company 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$71K
16.0% margin
Unlevered ROIC
71%
EBITDA / total invested capital
Payback
17 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $31K – $126K
- Better than avg vs category
- Liquid capital req'd
- $13K – $30K
- Better than avg vs category
- Franchise fee
- $30K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · 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 | $100 |
| Training fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $442K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Actual records of Company Owned Outlets
- Sample size
- 4 units
- vs category median 28 · small
- Range (low → high)
- $180K→$704K
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is 5.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Quick-Service Restaurants averages
How The Mini Donut Company Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 25.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
- Ceased ops
- 25.0%
- Units that stopped operating
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a severely underdeveloped franchise system with going concern doubts, zero financial transparency, minimal unit count, and unprotected territory — avoid unless current franchisees demonstrate exceptional profitability.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Class Advisors GP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial viability issues or regulatory concerns with the franchisor
- 02MINOROnly 4 existing units with unknown growth trajectory — extremely small and stagnant system suggests failed expansion or market rejection
- 03MINORNo Item 19 financial performance data — franchisor refuses to disclose average unit economics, preventing ROI validation
- 04MINORUnprotected territory — franchisees face direct competition from other franchisees and brand cannibalization risk
- 05MINORHigh franchise fee ($29,900) relative to total investment and unknown profitability — difficult payback period to justify
- 06MINOR5% royalty on gross sales (not net) — franchisee pays royalties even during loss-making periods
- 07MINORMinimal franchisee base (4 units) creates insufficient validation sample and liquidity risk for resale
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Territory population | 30,000 |
| Online sales rights | Granted |
| 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 | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Diego County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 51 hrs
- Training location
- San Diego, California
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Mini Donut Company franchise?
The total investment to open a The Mini Donut Company franchise ranges from $31K – $126K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Mini Donut Company franchise owners earn?
According to Item 19 of the The Mini Donut Company FDD, the average gross sales per unit is $442K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Mini Donut Company's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Mini Donut Company (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many The Mini Donut Company franchise locations are there?
As of their most recent FDD filing, The Mini Donut Company has 4 total units in the United States, including 0 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is The Mini Donut Company a good franchise to buy?
FranchiseVerdict rates The Mini Donut Company as a D-grade franchise with a risk score of 72 out of 100, 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
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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.