How Much Does a Shipley Do-Nuts Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$503K – $1.0M
Franchise Fee
$40K
Royalty
5.0%
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Shipley Do-Nuts is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Shipley Do-Nuts franchise requires a total investment of $503K – $1.0M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $25K to $40K.
Ongoing Costs
Beyond the initial investment, Shipley Do-Nuts franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $0.
Net Worth & Liquid Capital Requirements
Shipley Do-Nuts requires working capital of $25K – $40K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Shipley Do-Nuts's Item 19 financial performance representation:
Median gross sales: $849K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Shipley Do-Nuts?
SBA Loans Issued
27
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Shipley Do-Nuts has 27 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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