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Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Dunkin’ Donuts’ Average Sales by Venue Type (Freestanding, Shopping Center, Etc.)

by Franchise Chatter on August 15, 2014

in Coffee Franchise, Donuts Franchise, Franchise Earnings



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Dunkin' Donuts Store Exterior

Highlights of Dunkin’ Donuts’ Item 19 Financial Performance Representations (2014 FDD) – Part 1

  • Tables 1 through 4 and notes provide financial performance representations that are historical, and that are based on information from existing Dunkin’ Donuts Restaurants (exclusive of Dunkin’ Donuts/Baskin-Robbins Combo and Alternative Point of Distribution Restaurants) that have been open for business to the public for at least one year during a one-year measuring period from October 28, 2012 to October 26, 2013.
  • The site types listed in the following tables are defined as follows:
  • Freestanding: A Restaurant, either newly constructed or an existing structure (to be retrofit), that does not share any common walls with any third party.
  • Shopping Center/Storefront: A Restaurant that shares a common wall (or walls) with third parties. The Restaurant could be an anchor (endcap) or inline tenant space in a strip center, or it could be a location in a high density, multiple level construction (typically urban/downtown office building setting), sharing common wall and ceiling/floor construction with any third party.
  • Gas/Convenience Restaurants: A Restaurant that is a sub- or shared tenancy with a Gas/Convenience host environment.
  • Tables 5 through 7 and notes provide financial performance representations that are historical, and that are based on information from existing Dunkin’ Donuts/Baskin-Robbins Restaurants that have been open for business to the public for at least one year during a one-year measuring period from October 28, 2012 to October 26, 2013.

Notes Regarding Sales Data

  • The sales figures are compiled by using historical sales that are reported to Dunkin’ Donuts by franchisees. Dunkin’ Donuts has not audited or verified the reports.
  • This sales data does not include sales tax. The vast majority of the Restaurants that comprise this data are franchised, although Dunkin’ Donuts affiliates may own and operate a small number of Restaurants at any given time.
  • Sales in states or regions with a higher concentration of Restaurants that have been in operation for a substantial period of time tend to have higher sales than states or regions with a lower concentration of Restaurants that have been in operation for a lesser time period.
  • Many of the Restaurants included in this data have been open and operating for several years. These franchisees have achieved their level of sales after spending many years building customer goodwill at a particular location.
  • Your sales will be affected by your own operational ability, which may include your experience with managing a business, your capital and financing (including working capital), continual training of you and your staff, customer service orientation, product quality, your business plan, and the use of experts (for example, an accountant) to assist in your business plan.
  • Your sales may be affected by Restaurant location and site criteria, including traffic count and which side of the street your Restaurant is located, local household income, residential and/or daytime populations, ease of ingress and egress, seating, parking, the physical condition of your Restaurant, the size of your site, and the visibility of your exterior sign(s).
  • Additionally, many of the Restaurants included in the sales figures are freestanding Restaurants or located at the end of a strip center, and if your Restaurant is not, your sales could be substantially lower than the figures in the chart.
  • Individual locations may have layouts and seating capacities that vary from the typical location.
  • Other factors that could have an effect upon your sales may include consumer preferences, competition (national and local), inflation, local construction and its impact on traffic patterns, and reports on the health effects of consuming food similar to that served in the Restaurants, as well as the impact of federal, state, and local government regulations.
  • Your sales may be affected by consumer preferences for certain menu items over others, changes in the menu, and regional differences in products or product demand, including whether there are products not available to you or your region but sold in other regions. Menus are continually being revised, both adding and discontinuing products and product line extensions.
  • Sales may be affected by fluctuations due to seasonality (particularly in colder climates), weather, and periodic marketing and advertising programs. Inclement weather may cause temporary Restaurant closings in some areas.
  • The data below reflects historical sales. There is no assurance future sales will correspond to historical sales.
  • If you own a Combo Restaurant, the following may be applicable to you: many Baskin-Robbins franchisees actively pursue cake sales opportunities. If you do not, your sales may be negatively affected. Additionally, seasonality and weather may significantly affect sales of ice cream and related products.
  • Some individual Restaurants’ sales may include wholesale accounts and other distribution outlets, which may not be available to you. Not all of these opportunities have been successful for all participating franchisees.

Table 1 – Continental U.S. Dunkin’ Donuts Single Branded Restaurants, Average Restaurant Sales (for the Period October 28, 2012 to October 26, 2013) – Freestanding Site Type



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