Feasibility of Building a Dunkin Donuts

9 Replies

1. What is the best way to determine feasibility for constructing a Dunkin Donuts?

2. Can anyone offer insight on building a new construction Dd?

Thank you

@William Coet are you a franchisee or potential landlord?

Either way feasibility all comes down to the numbers. You can get ground up cost estimates directly from DD approved contractors. Then add land and development cost and pretty straight forward from there.Its a triple net deal so Income - expenses = NOI to service debt and generate a return.

As an operator you will typically generate more sales with a freestanding unit especially with drive than most online stores. Of course this is location specific as some urban areas the reverse is true.

@William Coet

Hi William,

Maybe the franchisor can give you some guidance as to what is most likely to be successful quickly, such as a particular range of traffic patterns at particular times of the day, as well as distance to nearby competition, size of town, part of town, income brackets of potential customers, etc...

They do make good doughnuts and coffee, and offer a nice seating area. As a multi-family investor, I think these are a plus for any neighborhood. Most people know the name and they seem to have a very positive appeal.

Good Luck!

Will DD be inclined to work with existing franchisees in the area, and not a new operator?  I'm thinking of being he franchisee and the property owner, but maybe property owner only is a better idea.

Your question is very bizarre .. 

Do you currently own a DD and want to construct a new location? If not so, why DD specifically?

Those are really the secondary issues when it comes to franchising, first the foremost, you have to pass and be approved to be a licensed franchisee with their business and then purchase existing locations or build new ones that they have already screened. 

DO you have the funds and experience that you think would support you in this business? What is your hospitality background? Any construction experience? 



Originally posted by @Lien Vuong :

Your question is very bizarre .. 

Do you currently own a DD and want to construct a new location? If not so, why DD specifically?

Those are really the secondary issues when it comes to franchising, first the foremost, you have to pass and be approved to be a licensed franchisee with their business and then purchase existing locations or build new ones that they have already screened. 

DO you have the funds and experience that you think would support you in this business? What is your hospitality background? Any construction experience? 

I see a market where it may work, what is so bizzare about inquiring about feasibility analysis?

William Coet,

1. Do you have money ( liquidity and net worth ) to meet the franchisor requirements? Even if you do they might require an operator with experience. Of course the franchisor likes existing operators with decades of experience and proven track records within the brand. That can make a difference between a new location thriving with franchisee paying royalty fees on time and a struggling operator where the store gets mismanaged and undercapitalized and shuts down where corporate franchisor has to take over to find a suitable franchisee.

2. Go look on real estate department link on Dunkin Donuts website and look at offering circular for potential franchisees. Being the business and owning the real estate getting paid a passive monthly check are night and day different. One you are working for yield and the other is a passive income stream.  

Hey @William Coet , I have actually financed several Dunkin Donuts franchises during my banking days. To clarify, are you going to be the franchisee or simply build the building and be a landlord for a franchisee. There is a big difference. The franchisees I have dealt with were all multiple-location operators that had development deals where they had protected areas, but had to develop a certain number of stores over a certain period of time. Assuming you are the franchisee, then I usually did SBA 7(a) loans that included the franchise fee and equipment in addition to the real estate. It's a different animal if you are simply the landlord. Perhaps you can give us more insight and we can try to steer you down the right path. Thanks. 

Anywhere from 700k to 1.5M approx without the cost of real estate. Assuming it's single lane drive-thru next-gen design. 

PA is a sold-out territory if your not an existing franchisee, better team up with someone in the industry if you are the LL. 

- Several things to consider is easy in / out 

- easy width & height of the drive-thru (yes, there is a specific dimension for these). 

- guard post

- fences 

- will you have a patio? Walk up? 

- Service delivery easy of access

I can go on and on, but PM if you have a specific question.




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