2017
2
$213,300
$30,000
$341,300
No
If you’re looking for an exciting and vibrant franchise opportunity in the U.S. foodservice market, Factory Donuts offers a unique blend of sweet indulgence and café culture. This brand brings together freshly-made gourmet donuts with premium coffee beverages in a welcoming, modern environment—creating a destination that appeals across morning coffee runs, midday snacks and evening treats. With consumer demand for quality, convenience, and experience continuing to rise, Factory Donuts positions itself to benefit from both repeat visits and impulse purchases.
From the moment customers walk through the door, they’re greeted by the aroma of freshly fried donuts, the sight of colorful glazes and toppings, and the allure of a comfortable café space where they can relax, work or socialize. The concept is built around freshness, quality and community engagement, giving franchisees a strong foundation from which to build local loyalty. With a focus on manageable store size, efficient operations, and an appealing product offering, Factory Donuts delivers the potential for strong brand affinity in markets where consumers crave something more than the ordinary bakery.
For a franchise investor in the U.S., this is an opportunity to align with a growing concept in a segment that is evolving: donuts are no longer just a quick treat—they’re becoming a lifestyle moment, paired with premium coffee and a polished café setting. That dynamic opens the door for an owner who wants to build a business that captures multiple day-parts, serves diverse customer segments, and competes on both product excellence and customer experience.
There are several compelling reasons to consider investing in a Factory Donuts franchise:
Growth potential in a targeted niche: The donut and café segment is expanding as consumers look for elevated treats and experiential food options. Factory Donuts taps this trend by offering more than a standard donut shop—it blends café-style beverages with in-store production and a modern ambiance.
Repeat-visit and multi-daypart capability: With donuts and coffee, you’re not limited to just a breakfast rush. The model can capture morning commuters, afternoon snacks, and evening indulgences—broadening the revenue potential across the day.
A moderate investment footprint: The store size, build-out, and equipment are designed for accessible entry compared to larger restaurant chains, making it suitable for owner-operators or investors who want growth potential without overwhelming capital commitment.
Differentiation and brand identity: By focusing on high-quality donuts, fresh coffee, and community engagement, the brand gives franchisees a memorable value proposition in markets that lack a vibrant café-donut hybrid.
Supportive franchise structure: The franchisor provides clear training, marketing, and operational frameworks—helping new owners replicate success.
Early-stage opportunity: Because the brand is still growing, early franchisees can benefit from prime territories, personalized support, and the chance to shape local brand presence.
Established Year: 2017
Franchise Units: Approximately 2 operational units in early years, with opportunities for rapid expansion.
Founders / Ownership: Factory Donuts was developed by entrepreneurs passionate about combining gourmet donuts and specialty coffee in a fast-casual café model. The company was later managed under Phoenix Nexus Group, which introduced growth initiatives and new menu concepts under “Factory Donuts Coffee ’N Chicken.”
Brand Journey: Since its launch, Factory Donuts has positioned itself as a fresh donut and coffee brand built for scalability and operational simplicity. The focus has always been on quality ingredients, a fun atmosphere, and customer connection.
Industry Category: Quick-service café and bakery—specializing in donuts, coffee, and beverages.
Market Presence: A growing U.S. brand with strong potential in suburban and urban markets where consumers seek premium donuts and local café experiences.
Franchise Term: 10 years (renewable).
Factory Donuts ensures franchisees are well-prepared to operate successfully. Comprehensive support includes:
Pre-Launch Support:
Site selection, lease guidance, and location approval.
Store design, layout planning, and equipment sourcing.
Vendor partnerships for ingredients and coffee supplies.
Pre-opening checklist and build-out assistance.
Initial Training:
Comprehensive classroom and on-site training for owners and staff.
Instruction on donut production, coffee preparation, food safety, POS operations, inventory control, and customer service.
Management training covering financials, staffing, marketing, and daily operations.
Grand Opening Assistance:
Support with hiring, training, and pre-opening marketing campaigns.
Launch event coordination and community engagement strategies to generate early buzz.
Ongoing Support:
Continuous field and virtual operational support.
Access to updated manuals, new product rollouts, and refresher training.
Marketing toolkits and seasonal promotional materials to maintain visibility.
Assistance with local store marketing and social media strategies.
Marketing Support:
National and regional brand marketing.
Local advertising programs, loyalty programs, and promotional campaigns.
Digital marketing templates and community engagement strategies.
Multi-Unit Development:
Guidance for franchisees interested in opening multiple units.
Territory protection, staff scalability, and shared supply chain efficiencies.
The ideal Factory Donuts franchisee is:
Entrepreneurial and hands-on: Enjoys being involved in daily operations, managing teams, and interacting with customers.
Business-minded: Has prior experience in retail, hospitality, or food service, or possesses strong management and leadership skills.
Community-focused: Likes to engage locally, participate in events, and build customer relationships.
Financially prepared: Has the liquidity and capital to support initial investment and working capital during early growth.
Passionate about customer experience: Dedicated to maintaining product quality, store cleanliness, and excellent service.
Growth-oriented: Interested in owning multiple units or scaling operations over time.
Location-savvy: Understands how to identify prime locations with steady foot traffic such as shopping centers, business districts, or university areas.
| Financial Component | Estimated Amount (USD) | Notes / Details |
|---|---|---|
| Total Initial Investment | $213,300 – $341,300 | Includes build-out, equipment, inventory, training, and initial working capital |
| Franchise Fee | $30,000 | One-time upfront fee for franchise rights and onboarding |
| Minimum Liquid Capital | $50,000 | Minimum cash/liquid funds required to qualify |
| Net Worth Requirement | $250,000 – $300,000 (recommended) | Ensures financial capacity for operations and growth |
| Royalty Fee | 5% of Gross Sales | Paid monthly to franchisor for ongoing support and system use |
| Marketing / Advertising Fee | 2.5% of Gross Sales | Contributes to national and local marketing programs |
| Leasehold Improvements | $60,000 – $120,000 | Depends on store size, location, and condition of leased space |
| Equipment & Fixtures | $75,000 – $100,000 | Includes donut production systems, coffee machines, POS, display cases, signage |
| Initial Inventory | $5,000 – $10,000 | Ingredients, packaging, uniforms, and smallwares |
| Training & Travel Costs | $5,000 – $8,000 | Owner and staff training prior to opening |
| Pre-Opening Marketing | $5,000 – $10,000 | Launch promotions, grand-opening events, and digital campaigns |
| Working Capital (3–6 months) | $20,000 – $40,000 | To cover payroll, rent, and operating expenses during ramp-up |
| Franchise Term | 10 Years (Renewable) | Renewable agreement with continued compliance and brand standards |
| Expected Break-Even Period | 24 – 36 Months | Depends on location performance and cost control |
| Projected ROI Range | 15% – 25% (Est.) | Based on average unit sales potential and efficient management |
| Potential Revenue Streams | — | In-store sales, catering, delivery, seasonal specials, branded merchandise |
