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Daylight Donut Shop USA Franchise Opportunity

USA

Established

1954

Franchise Units

1000

dollar

Minimum Investment

$100,000

dollar

Franchise Fee

Inquire

dollar

Total Investment Range

$200,000

Home Based

No

Description

A Lucrative and Royalty-Free Bakery Business Opportunity

Step into the incredibly profitable food industry with Daylight Donuts, a beloved American institution since 1954. Far from a conventional franchise, we offer a superior business model as a licensee-based opportunity, which is the key to maximizing your profit potential. Our unique approach means you get all the benefits of a time-tested, national brand—signature products, comprehensive support, and a loyal customer base—without the burden of ongoing royalty fees or upfront franchise percentages.

Daylight Donuts has earned a stellar reputation for its distinctively light, airy, and flavorful donuts, thanks to a proprietary flour mix developed over half a century ago. This commitment to quality has positioned us as a market leader in the quick-serve restaurant (QSR) and baked goods industry. By operating a Daylight Donut shop, you are leveraging a proven system and a brand that is instantly recognized and cherished across the United States. If you're an aspiring entrepreneur seeking a straightforward, high-margin, and community-focused business, a Daylight Donuts license is your ideal pathway to independent success.

Why Invest in this Franchise (Licensee Opportunity)?

The Daylight Donuts model is engineered for maximum operator profit and independence, setting it apart from typical franchise systems:

  1. Zero Royalties, 100% Profit Retention: As a licensee, you are not required to pay ongoing royalty fees or franchise percentages on your sales. This means every dollar of profit you make stays in your business and your pocket. This factor is a massive advantage in achieving a faster return on investment and higher long-term profitability compared to most competitors.

  2. Low Barrier to Entry and Investment: With a competitive total investment range, Daylight Donuts offers an accessible path to business ownership. The initial investment focuses on tangible assets like equipment, inventory, signage, and décor, which are critical to your store's operation.

  3. Proven, Iconic Product: Our signature, yeast-raised donuts and proprietary coffee blend have stood the test of time, garnering a reputation for being among the best in the nation. You gain immediate access to time-tested recipes and products that drive customer loyalty and repeat business.

  4. Comprehensive Support Without the Overhead: You receive expert guidance on site selection, store layout, equipment installation, operational training, and grand opening support from our experienced management team. Your investment is directed into your store’s success, not unnecessary corporate overhead.

  5. High-Profit Margin Potential: Donuts and coffee are among the most profitable food items in the industry. Our unique model amplifies this by eliminating the constant drag of royalty payments, allowing the high gross margins of these products to translate directly into superior net profits.


Background


DetailInformation
Established Year1954
FoundersTommy and Lucille Day
HeadquartersTulsa, Oklahoma, U.S.
Company NameDaylight Donut Flour Company, LLC
Industry CategoryFood & Restaurant, Baked Goods, Quick-Serve Restaurant (QSR)
Business ModelLicensee, not a traditional Franchise
Franchise Units (Approximate)Nearly 1,000 retail outlets across the world.
Market PresenceOperations in 28 U.S. States and nearly a dozen international markets.


Brand Journey & Company History: Daylight Donut Flour Company, LLC, was founded in 1954 in Tulsa, Oklahoma, by Tommy and Lucille Day. Their revolutionary idea centered on a unique, light-textured flour mix for their yeast-raised donuts, quickly making them a local favorite. The business initially grew by the Days producing the mix and selling it from their car trunk to other shops. By 1977, the network had grown to over 200 stores. The company was later purchased by Jerry and Linda Hull, and then in 2002 by John and Sheila Bond, who continue to lead the company's expansion with an entrepreneurial culture. The Daylight brand's longevity and widespread adoption are a testament to its exceptional product and accessible business model.

Support Training

Daylight Donuts provides extensive, hands-on support to ensure new operators are equipped for success, embodying the philosophy: "We Started From Scratch so You Won't Have To."

  • Pre-Launch & Site Selection: The management team provides crucial support by sharing research and expertise to help you identify and select the best location for your Daylight Donuts shop. This involves guidance on demographics, traffic flow, and competitive analysis.

  • Operational & Equipment Planning: Support continues through the planning and equipping phase. This includes assisting with store layout design, purchasing and installing the necessary donut-making equipment (fryers, mixers, proofers, etc.), and securing signage.

  • Training (Academic & Hands-On): New operators are provided with comprehensive training on the proprietary Daylight products and processes. This includes the science of making the high-quality, signature light donuts, inventory management, point-of-sale operations, and customer service standards.

  • Ongoing Support: As a licensee, you are never truly alone. The company’s management team provides continuous support for your day-to-day operations. This focuses on maintaining product quality, brand integrity, and troubleshooting operational challenges, ensuring your store runs smoothly long after the grand opening.

  • Product Access: Your agreement ensures exclusive access to the proprietary Daylight products, including the essential flour mix and the signature coffee blend, maintaining product consistency and quality across the entire network.


Ideal Candidate

Daylight Donuts seeks motivated entrepreneurs who are ready to dedicate their time and passion to a community-focused retail bakery business.

  • Commitment to Operations: The ideal candidate must have the desire and willingness to personally devote full-time efforts to operate and manage their own business. This is a hands-on opportunity for an owner-operator.

  • Business Acumen & Stability: A proven background with a solid employment history and personal financial stability is preferred. Prior restaurant or bakery experience is a plus, but not strictly required, given the comprehensive training provided.

  • Financial Capability: Candidates must meet the minimum financial requirement for liquid capital and possess the ability to secure additional financing for the total investment.

  • Brand Integrity & Customer Focus: The ideal operator must understand the importance of a licensee relationship and be committed to maintaining the high quality and integrity of the Daylight Donut brand and product. An enjoyment of working with the public in a quick-serve environment is essential.

  • Location Preference: Entrepreneurs looking to establish a highly visible, local, quick-service bakery in a high-traffic area (e.g., shopping centers, busy thoroughfares, main street locations) are best suited for this opportunity.


Financial Detail

The Daylight Donuts model is unique as it is a licensee opportunity, not a traditional royalty-bearing franchise. This structure significantly affects the fees and profit structure compared to competitors.


Financial ComponentEstimated AmountNotes
Total Investment Range$100,000 - $200,000
This range covers equipment, initial inventory, build-out, signage, and working capital.

Minimum Cash Required (Liquid Capital)$100,000 (some sources indicate min. non-borrowed funds as $50,000)Funds you must have readily available (cash, stocks, etc.) to invest.
Franchise Fee / Upfront Licensing Fee$0NO upfront franchise or licensing fees are charged.
Royalty Fees0% (None)NO ongoing royalties. All profits stay with the operator.
Marketing/Advertising BudgetVariable
No mandated corporate marketing fees; budgeted locally as part of the total investment/working capital.

Infrastructure/Build-out CostIncluded in the Total Investment Range.Varies by location size (approx. 1,000 sq. ft.) and renovation needs.
Working CapitalIncluded in the Total Investment Range.
Funds for initial payroll, utility deposits, and a cash reserve.

Revenue StreamsSales of signature donuts (raised and cake), cinnamon rolls, sausage rolls, specialty pastries, and proprietary Daylight Signature Coffee.
The high-demand product mix ensures multiple revenue streams throughout the morning and day.

Expected ROI & Break-Even TimeHighly FavorableThe absence of ongoing royalty payments dramatically reduces operational overhead, accelerating the break-even point and maximizing the operator's long-term Return on Investment (ROI).



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