Risk Score
Pending analysis
Investment Range
$189,580 - $272,900
Franchise Fee
$54,500
Total US Locations
99
Business Summary
DonutNV operates an interactive mobile mini donut making business, specializing in preparing, cooking, and serving mini donuts, along with other food items and specialty beverages. DonutNV uses a customized vehicle trailer to cater to parties, corporate events, and other events or to operate at recurring site locations.
Corporate History
DonutNV Franchising, Inc. was formed as a Pennsylvania corporation in February 2018, and later converted to a Florida corporation in February 2023. The brand's concept, DonutNV, originated from Alex Gingold's company, Keystone Amusements LLC, which started in 2010 supplying vending machines. In April 2014, Keystone Amusements LLC shifted to a mini donut business under the name 'Cinnamini Donuts'. The owners rebranded this concept to 'DonutNV' in 2018 and began offering franchises that same year. DonutNV was initially based in Pottstown, Pennsylvania, and relocated to the Orlando, Florida metro area in 2021.
Financial Overview
Investment Range
$189,580 - $272,900
Franchise Fee (Low)
$54,500
Franchise Fee (High)
$265,000
Equipment Costs (Low)
$114,650
Equipment Costs (High)
$144,650
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
DonutNV Franchising, Inc. appears to be in a strong financial position with an unqualified audit opinion for its 2023 financial statements, indicating that the statements present fairly in all material respects. The company reported a net income of $3,750,308 for 2023 and has substantial cash and cash equivalents totaling $1,130,993 as of December 31, 2023. DonutNV also maintains positive working capital with current assets significantly exceeding current liabilities. A notable aspect is a $3,940,919 balance due from an affiliated company as of December 31, 2023, which also contributed $3,900,000 to the franchisor's other income in 2023. There are no identified concerns about DonutNV Franchising's ability to continue as a going concern.
Financing Details
DonutNV does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
99
Franchised Units
98
Corporate Units
1
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
DonutNV has no litigation history to report. The company has not been involved in any legal actions that are required to be disclosed in the FDD.
Bankruptcy History
DonutNV has no bankruptcy history to report. No bankruptcy information is required to be disclosed for DonutNV Franchising, Inc. or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their DonutNV franchise agreement, franchisees must provide advance notice to DonutNV Franchising, be in full compliance with all contractual obligations to the franchisor and third parties, and ensure their business conforms to the then-current standards for new franchisees. They will also need to sign the franchisor's then-current form of franchise agreement and all related documents, including a personal guaranty, and execute a general release of claims. A renewal fee is also required.
Training & Support Program
Franchisor Assistance
Before opening, DonutNV Franchising's affiliate, Keystone Manufacturing, LLC, sells the franchisee the DonutNV vehicle trailer, fully equipped with all necessary items, an iPad tablet with software, marketing postcards, and business cards. DonutNV also provides franchisees with access to its proprietary Operations Manual, conducts an initial training program, and, if requested, reviews the franchisee's pre-opening business plan and advises on their market introduction plan. After opening, DonutNV offers advice on improving and developing the business, helps resolve operational problems via phone or electronic communication (in-person support incurs a fee), and provides recommended product and service prices. DonutNV may also provide recommended administrative, bookkeeping, accounting, and inventory control procedures. The franchisor manages the Brand Fund, maintains a website for the DonutNV brand (including the franchisee's location), and conducts an annual food safety and brand standards review (for which a fee is charged).
Initial Training Hours
40
Training Location
Orlando, FL
Ongoing Support
After opening, DonutNV Franchising provides ongoing advice to franchisees, mainly via telephone or electronic communication, regarding business improvement, development, and problem-solving. Upon request, DonutNV offers recommended pricing for products and services. The franchisor may also provide recommended administrative, bookkeeping, accounting, and inventory control procedures. DonutNV manages the Brand Fund for system-wide marketing and maintains the brand's website, which includes the franchisee's location. Additionally, DonutNV conducts an annual food safety and brand standards review, for which a fee is charged.
Franchise Requirements
Ideal Candidate Profile
DonutNV Franchising seeks franchisees who are willing to participate personally and devote substantial time and attention to their business. The Principal Executive, who must hold at least a 50% ownership interest in the franchise, is required to personally work at the first 25 events the mobile trailer participates in. While daily operations can be delegated to a trained general manager after this initial period, DonutNV recommends continued personal oversight or involvement from the owner.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
DonutNV franchise territories are typically defined by zip codes and have a population of up to 100,000 people. The boundaries may also be influenced by natural limits or other mutually agreed-upon criteria.
Staffing Notes
DonutNV requires the Principal Executive (owner, with at least 50% ownership) to be personally involved in the direct operation of the DonutNV business and dedicate substantial time to it. Initially, the Principal Executive must personally work at the first 25 events. After this period, daily operations can be delegated to a general manager, provided that manager has successfully completed DonutNV's training program. DonutNV franchisees are solely responsible for all hiring decisions, training, scheduling, supervision, compensation, and termination of their personnel. All DonutNV personnel must provide competent and courteous service and adhere to DonutNV's dress attire, uniform, personal appearance, and hygiene standards. Any drivers of the DonutNV mobile unit must possess a valid license and meet all System Standards. General managers and other key employees may also be required to sign confidentiality and non-compete agreements. The initial training program provided by DonutNV is designed for the Principal Executive and up to one other employee.