Shipley Do-Nuts
Shipley Do-Nuts franchises retail shops specializing in the sale of donuts, kolaches, coffee, specialty drinks prepared on-site, and related products and services, operating under a proprietary system with specific recipes, designs, signage, and operational standards. Franchisees can pursue single-unit or multi-unit development agreements to open shops in high-traffic locations like strip malls or standalone sites. The target market is the general public seeking on- and off-premises consumption of these products in a competitive market with other donut, coffee, and bakery chains.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty + 1% brand fund + $110/mo loyalty program
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 309 Reporting Franchised Shops open for at least a full 16 months as of December 31, 2024.
Extracted Item 19 Section
How Shipley Do-Nuts Compares to Other Fast Food Franchises
Key Insights
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Shipley Do-Nuts Current | $503K - $1.0M | $40K | 5.0% | 355 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for Shipley Do-Nuts franchisees (2018 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily breach of contract, trademark infringement, and unfair competition claims by franchisor against former franchisees for non-compliance, failure to de-identify post-termination, and continued competition, with counterclaims alleging wrongful termination and violations of the Arkansas Franchise Practices Act. One concluded case involving lease disputes tied to franchisee non-compliance and termination, and one recent breach of franchise agreement.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Shipley Do-Nuts franchise?
The total initial investment to open a Shipley Do-Nuts franchise ranges from $503,461 to $1,024,946. This includes a franchise fee of $40,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a Shipley Do-Nuts franchise make?
According to the 2026 FDD, the average gross revenue for a Shipley Do-Nuts franchise is $928,180. The median revenue is $849,273.
How many Shipley Do-Nuts franchise locations are there?
As of the 2026 FDD, Shipley Do-Nuts has 355 franchise locations. The company has been franchising since 1987.
Can you get an SBA loan for a Shipley Do-Nuts franchise?
Yes, SBA loans are available for Shipley Do-Nuts franchises. Historical data shows 27 SBA 7(a) loans have been approved for Shipley Do-Nuts franchisees, with an average loan amount of $666,267. The historical default rate is 0.0%.
Is Shipley Do-Nuts a good franchise to buy?
Shipley Do-Nuts shows several positive indicators: established brand with 355+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in Shipley Do-Nuts?
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