In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a DonutNV franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a DonutNV franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the DonutNV franchise opportunity
Section V – Presentation and analysis of DonutNV’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 annual gross sales (event revenue, travel fees, gratuities), select expenses (food cost – supplies, fuel, merchant processing), adjusted net profit, franchise fees (Royalty, Brand Fund, Tech Fee), and adjusted net profit after franchise fees for the one DonutNV trailer operated by DonutNV’s affiliate in 2022
- 2022 number of events, average sales per event, and median sales per event for the one DonutNV trailer operated by DonutNV’s affiliate in 2022
- 2022 sales for the four DonutNV franchisees who operated a DonutNV trailer for at least 10 months in 2022 and reported sales to DonutNV
Section VI – Key ratios, comparables, computations, and analyses for the DonutNV franchise opportunity (exclusive content for Platinum subscribers)
Section I – DonutNV Franchise Costs
- DonutNV franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $59,500
- Technology Setup and Marketing Package: $2,250
- Tow Vehicle: $0 to $750
- Vehicle Trailer, Equipment, and Supplies: $114,650 to $124,650
- State Specific Trailer Upfit: $0 to $20,000
- Delivery of Trailer: $0 to $6,000
- Rent and Utility Deposits: $0 to $3,600
- Furniture: $0 to $500
- Computer and Software: $25 to $1,000
- Additional Opening Inventory: $100 to $2,500
- Insurance Deposits and Premiums (up to 12 months): $500 to $5,000
- Pre-opening Travel Expense to Attend Training: $2,000 to $3,175
- Market Introduction Program: $500
- Professional Fees (lawyer, accountant, etc.): $500 to $3,000
- Business Permits and Licenses: $50 to $600
- Printing, Stationery, and Office Supplies: $0 to $500
- Additional Funds (for first 3 months): $5,000 to $20,000
- Total Estimated DonutNV Franchise Costs: $185,075 to $253,525
Section II – DonutNV’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- DonutNV’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Franchise Fee: $59,500 for a territory with up to 100,000 people. If your territory is larger than 100,000 people, the fee will increase by $0.50 per person.
- Royalty: Year 1: $125 per week per unit; Year 2: $136 per week per unit; Year 3 through end of term: $146 per week per unit
- Brand Fund Contribution: $200 per month per unit
- Local Advertising, Marketing, and Promotional Expenditures: minimum of $600 per year per unit
Section III – Number of Franchised and Company-Owned DonutNV Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 1
- Net Change: +1
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 4
- Net Change: +3
2022
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 16
- Net Change: +12
Company-Owned
2020
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 1
- Net Change: -1
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
Section IV – News Updates on the DonutNV Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the DonutNV Franchise (Item 19, 2023 FDD)
- The following information shows past financial performance and is not a projection of future performance.
Part 1 – DonutNV 2022 Summary Profit Statement – One Company Unit
- There was one DonutNV trailer operated by DonutNV’s affiliate for all of 2022.
- The following material financial and operational characteristics of the business described in Parts 1 and 2 may reasonably be anticipated to differ materially from future franchise outlets:
- The trailer operates in Pennsylvania.
- It began operating under the “DonutNV” brand name in 2018.
- The trailer is primarily operated by a manager (rather than being owner-operated).
- It does not have a specific territorial boundary.
- It does not have any expense associated with a commissary (whereas your state or local laws may require you to have access to a commercial kitchen commissary).
- The following table shows certain sales and expense information for the one DonutNV trailer operated by DonutNV’s affiliate in 2022.
Total 2022 Performance
Sales
- Event Revenue: $187,428 (93.4%)
- Travel Fees: $11,850 (5.9%)
- Gratuities: $1,420 (0.7%)
- Gross Sales: $200,693 (100.0%)
Select Expenses
- Food Cost – Supplies: $11,903 (5.9%)
- Fuel: $4,556 (2.3%)
- Merchant Processing: $2,535 (1.3%)
- Total Select Expenses: $18,994 (9.5%)
Adjusted Net Profit: $181,699 (90.5%)
Franchise Fees
- Royalty: $6,500 (3.2%)
- Brand Fund: $2,400 (1.2%)
- Tech Fee: $3,000 (1.5%)
- Total Franchise Fees: $11,900 (5.9%)
Adjusted Net Profit with Franchise Fees: $169,799 (84.6%)
- “Sales” means total of all revenue in a period, not including discounts, taxes, voids, or refunds. In Part 1, it includes gratuities (other than gratuities paid in cash).
- “Select Expenses” means the specific expenses listed. Part 1 does not include all costs you would incur to operate a DonutNV business, such as costs of the tow vehicle, insurance, or professional fees (such as legal or bookkeeping). Labor cost is omitted from expenses because DonutNV’s affiliate’s trailer was primarily operated by a person who was paid a percentage of operating profits.
- “Adjusted Net Profit” is Gross Sales less the Select Expenses. It also does not include interest, taxes, depreciation, or amortization.
- “Franchise Fees” are the Royalty Fee, Brand Fund Contribution, and Technology Fee that the business would have paid if it had signed the form of Franchise Agreement attached to the disclosure document and was in its first year of operation (so that the Royalty Fee would have been $125 per week).
- “Adjusted Net Profit with Franchise Fees” is Adjusted Net Profit less Total Franchise Fees.
Part 2 – Events Conducted – One Company Unit
- The following table shows the number of events conducted by the affiliate-operated trailer in 2022, and the average and median sales per event.
2022
- Number of Events: 102
- Average Revenue Per Event: $1,968
- Median Revenue Per Event: $1,680
Part 3 – 2022 Sales by Franchisees
- Franchisee 1: $216,590
- Franchisee 2: $61,986
- Franchisee 3: $76,012
- Franchisee 4: $156,896
- Average: $127,871
- There were six franchisees who operated a DonutNV trailer for at least 10 months in 2022 (five of whom opened in 2020 or 2021, and one that opened in February 2022). The sales by two of the franchisees are not stated in Part 3 because they did not report sales to DonutNV, despite being obligated to do so under the terms of the Franchise Agreement.
- In Part 3, “Sales” is the revenue reported to DonutNV by the franchisee. The first franchisee did not define “Sales” in their report. For the other franchisees in Part 3, “Sales” is the total of all revenue in a period, less discounts, taxes, voids, or refunds. It includes gratuities processed through the point-of-sale system.
- Some outlets have sold and earned these amounts. Your individual results may differ. There is no assurance that you’ll sell or earn as much.
Section VI – DonutNV Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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