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.
Franchise Costs
5% royalty + 1% brand fund + $110/mo loyalty program
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
Key Insights
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Shipley Do-Nuts Current | $503K – $1.0M | $40K | 5.0% | 355 |
| 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 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
360 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
360 Contacts Available
Unlock all Shipley Do-Nuts franchisee contacts with verified contact information
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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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