About DonutNV Franchise
DonutNV is a mobile and brick and mortar donut franchise that serves fresh, hot mini donuts and fresh squeezed lemonade.
The brand has been franchising since 2018 and has grown rapidly by offering a fun, visual food experience where customers watch their donuts being made right before their eyes.
The franchise fee is $59,500.
DonutNV Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $59,500 | One-time payment upon signing |
| Royalty Fee | 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 of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Flat rate of $200 per month per unit | National brand fund |
| Total Investment Range | $185,075 – $253,525 | Includes build-out, inventory, working capital |
The investment range of $185K–$254K reflects variability in build-out costs, store size, lease terms, and market. The combined 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) and marketing fee (Flat rate of $200 per month per unit) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $59,500 | $59,500 |
| Technology Setup and Marketing Package | $2,250 | $2,250 |
| Tow Vehicle (see Note 2) | $0 | $750 |
| Vehicle Trailer, Equipment, and Supplies (see Note 3) | $114,650 | $124,650 |
| State Specific Trailer Upfit (see Note 3) | $0 | $20,000 |
| Delivery of Trailer | $0 | $6,000 |
| Rent and Utility Deposits (see Note 4) | $0 | $3,600 |
| Furniture | $0 | $500 |
| Computer and software | $25 | $1,000 |
| Additional Opening Inventory | $100 | $2,500 |
| Insurance Deposits and Premiums (up to 12 months) | $500 | $5,000 |
| Pre-opening travel expense to attend training | $2,000 | $3,175 |
| Market Introduction Program | $500 | $500 |
| Professional Fees (lawyer, accountant, etc.) | $500 | $3,000 |
| Business Permits and Licenses | $50 | $600 |
| Printing, Stationery and Office Supplies | $0 | $500 |
| Additional funds (for first 3 months) (see Note 5) | $5,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (plus any broker fees incurred by us) |
| Renewal Fee | 25% of the then current franchise fee (but not less than $10,000) |
| Technology Fee | Currently, $250 per month per unit |
| Audit Fee | Our actual costs |
| Breach of territory fee | $1,000 per violation |
| Local advertising, marketing, and promotional expenditures | Minimum of $600 per year per unit |
| Non-compliance fee | $250 |
| Late fee | $25 per day plus interest on the unpaid amount at a rate equal to 12% per year |
| Change of territory fee | $3,000 |
| Testing or supplier approval fee | $150 |
| Loss or Misappropriation of Manual | $750 |
| Management fee | 40% of gross sales plus our expenses |
| Additional training fee | Currently, $300 per day for training at our location; currently $750 per day plus our expenses for training at your location |
| Third party vendors | Pass-through of costs, plus administrative charge. Currently, none. |
| Software subscription | Currently, none |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Costs of collection | Our actual costs |
| Customer satisfaction resolution | Our expenses |
| Safety and brand standards review | Currently, $265 |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 12 hours classroom, 28 hours on-the-job |
| Classroom Training | 12 |
| On-the-Job Training | 28 |
| Training Location | Orlando, Florida |
| Additional Training | We do not currently require additional training programs or refresher courses, but we have the right to do so. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | up to 100,000 people |
| Description | The boundaries of your territory will typically be specified by zip codes, but we may define your boundaries by territory boundaries may be affected by natural boundaries or other limits that we mutually agree with you. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | 25% of the then current franchise fee (but not less than $10,000) |
| Renewal Conditions | You must give advance notice to us; be in compliance with all contractual obligations to us and third parties; conform your business to then-current standards for new franchisees; sign then-current form of franchise agreement and related documents (including personal guaranty); sign general release (unless prohibited by applicable law), and pay renewal fee. |
| Transfer Fee | $10,000 (plus any broker fees incurred by us) |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and guaranty; you’ve made all payments to us and are in compliance with the franchise agreement; buyer completes training program; you sign a general release (subject to state law); business complies with then-current system specifications. |
| Termination for Cause | We may terminate your franchise agreement for cause, subject to any applicable notice and cure opportunity. Curable defaults include non-payment (10 days to cure), other violations (30 days to cure), or dangerous operation (48 hours to cure). Non-curable defaults include misrepresentation, false information, bankruptcy, violation of law, confidentiality or non-compete, transfer restrictions, slander, refusal to cooperate with audit, ceasing operation for more than 30 days, losing possession of unit, three defaults in 12 months, cross-termination, felony conviction, or acts materially affecting the brand. |
| Non-Compete Period | two years |
| Non-Compete Details | For two years after the agreement expires or is terminated, neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor operating within 25 miles of your former territory or of the territory of any other DonutNV business operating on the date of termination or expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You are required to participate personally in the direct operation of your business and must devote substantial time and attention to the business. However, you may delegate daily operations to a general manager who has completed our training program. The Principal Executive must own at least 50% of the business and complete initial and any post-opening training programs. |
| Required Suppliers | Our affiliate Keystone Amusements Provisioning, LLC is the sole supplier of the initial DonutNV trailer package, as well as donut machines you purchase in the future. We are the sole supplier of the proprietary DonutNV donut mix, donut bags, and certain sugar toppings. |
| Supply Restrictions | All mixes, syrups, sugar toppings, and other food items and paper products must be purchased according to our specifications and only from approved suppliers. You must purchase items bearing our logo and trademarks only from approved suppliers. |
| Franchisor Revenue from Suppliers | Our total revenue in 2021 was $69,461. Revenue to us from all required purchases and leases of products and services by franchisees in 2021 was $11,337, or 16.3%. Our affiliate Keystone Amusements LLC’s revenue from the required purchases and lease of products and services by franchisees in 2021 was $217,837.50. |
DonutNV Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
DonutNV Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DonutNV System Growth
DonutNV currently operates 4 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 2 |
| 2020 | 1 | 1 | 2 |
| 2021 | 3 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
DonutNV Franchise — FAQ
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