Founded in 2013 by entrepreneurs Tim and Kas Clegg, Hurts Donut Company reinvents the classic donut with a creative flair, offering an extensive selection of innovative flavors and toppings.
Based in Springfield, Missouri, Hurts Donut sets itself apart by its adventurous and unconventional donut varieties, often referred to as “the rebel of all donuts.” Each flavor is crafted as a unique expression of appreciation for its customers, challenging traditional donut conventions with eclectic toppings and daring flavors.
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Initial investment
Here’s what you can expect to spend to start a Hurts Donut Company franchise.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $35,000 |
| Rent & Security Deposit | $10,000 – $15,000 |
| Initial Training Fee | $10,000 – $10,000 |
| Leasehold Improvements | $200,000 – $350,000 |
| Architectural/Engineering | $6,000 – $15,000 |
| Opening Inventory and Food Ingredients | $40,000 – $70,000 |
| Equipment and Smallwares | $125,000 – $175,000 |
| Furniture | $9,000 – $12,000 |
| Computer Hardware, Software, and POS System | $2,000 – $5,000 |
| A/V Equipment | $1,000 – $5,000 |
| Vehicle and Wrap | $10,000 – $15,000 |
| Signage/Art Package | $15,000 – $40,000 |
| Insurance | $7,000 – $12,000 |
| Travel and Living Expenses to Attending Initial Training | $2,000 – $5,000 |
| Retail Merchandise | $25,000 – $35,000 |
| Total | $502,000 – $819,000 |
Note:The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in theItem 7of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Investment
The upfront investment for opening a single Hurts Donut franchise is set at $35,000, due at the time of the Franchise Agreement signing. For entrepreneurs interested in expanding their reach, a bundled option is available, allowing the acquisition of three territories for $90,000 or five for $125,000, assuming these territories are bought together.
Ongoing Royalty Contributions
Franchisees contribute 7% of their Gross Sales as a weekly Royalty fee every Monday, which supports the broader franchise system’s resources and growth.
Marketing Contribution
A Marketing Royalty fee, calculated as 2% of the weekly Gross Sales, is allocated to enhance the brand’s marketing initiatives and promotional activities.
Franchise Transfer Fee
In the event of a franchise sale, a Resale Fee of $17,500 is required to facilitate the transition, ensuring a seamless handover and maintaining service quality.
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How to apply
Opening a Hurts Donut Company franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Hurts Donut Company franchise.
1. Conduct Initial Research
- Explore the Hurts Donut Company franchise opportunity online to understand their business model, brand, and market position.
- Review testimonials and experiences of current franchisees to gauge the franchise’s support system and success rates.
2. Submit an Application
- Complete the franchise application form available on the Hurts Donut Company website, providing detailed personal and financial information.
- Ensure accuracy and completeness to avoid delays in the evaluation process.
3. Attend a Discovery Day
- Once your application is preliminarily approved, you’ll be invited to attend a Discovery Day at the Hurts Donut Company headquarters in Springfield, Missouri.
- Use this opportunity to meet the franchisor team, ask questions, and get a feel for the company culture and expectations.
4. Review Franchise Disclosure Document (FDD)
- Carefully review the Franchise Disclosure Document provided by Hurts Donut Company, which contains crucial details about the franchise agreement, fees, obligations, and financial performance representations.
- Consider consulting with a franchise attorney to understand the legal and financial implications.
5. Secure Financing
- Determine the total investment required, including the franchise fee, training fee, equipment costs, and working capital.
- Explore financing options such as loans, personal savings, or investors to ensure you have the necessary funds to start and operate the franchise.
6. Sign the Franchise Agreement
- Upon mutual agreement and completion of due diligence, sign the Franchise Agreement to officially become a Hurts Donut Company franchisee.
- Pay the initial franchise fee as stipulated in the agreement to secure your franchise rights.
7. Complete Franchise Training
- Attend the comprehensive training program at the company’s headquarters or a designated training location, focusing on operational procedures, product knowledge, customer service, and business management.
- Implement the training knowledge in your store setup and operations to ensure compliance with brand standards.
Disclaimer
Disclaimer: This content has been madefor informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained inthis articleconstitutes a solicitation, recommendation, endorsem*nt, advertisem*nt, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circ*mstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the articleconstitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
