Duck Donuts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$514,650 - $736,800
Franchise Fee
$30,000
Min Cash Required
$35,000
Total US Locations
131
Business Summary
Duck Donuts Holdings, LLC operates retail shops that specialize in selling fresh, made-to-order donuts. In addition to donuts, Duck Donuts also offers other breakfast items, gourmet coffee, and various merchandise. The business utilizes distinctive trade dress, proprietary recipes, and specific operating procedures and standards within a limited territory from a single location.
Corporate History
Duck Donuts Holdings, LLC was formed as a limited liability company in Delaware on March 4, 2021. The company began offering franchises on April 26, 2021. Its predecessor, Duck Donuts Franchising Company, LLC, previously offered Duck Donuts franchises from October 2012 to April 2021. Duck Donuts Holdings, LLC also has an affiliate, Duck Donuts IP, LLC, which owns the primary trademarks, and another affiliate, Duck Donuts International, LLC, which offers international franchises.
Financial Overview
Investment Range
$514,650 - $736,800
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$370,000
Equipment Costs (High)
$532,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Duck Donuts Holdings, LLC has received an unqualified audit opinion for its financial statements, indicating that the statements are presented fairly in all material respects. The company reported a net loss of $386,178 in 2024, compared to a net income of $281,596 in 2023. Cash balances decreased from $1,735,456 in 2023 to $1,046,430 in 2024. However, Duck Donuts Holdings, LLC maintains a positive working capital with current assets of $2,150,387 and current liabilities of $1,839,272 in 2024, and no going concern issues were noted by the auditors.
Financing Details
Duck Donuts Holdings, LLC does not offer any direct or indirect financing to franchisees and does not guarantee any notes, leases, or other obligations on their behalf. Franchisees must arrange their own funding through external sources.
Performance Metrics
Total US Locations
131
Franchised Units
130
Corporate Units
1
Avg Square Footage
1,200
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Duck Donuts Holdings, LLC disclosed one litigation matter. This involved a Consent Order entered on January 26, 2022, with the California Department of Financial Protection and Innovation. The claims were that Duck Donuts Holdings, LLC violated the California Franchise Investment Law by maintaining Google click ads and offering a franchise when its disclosure document was not properly registered in California. Without admitting guilt, Duck Donuts Holdings, LLC voluntarily agreed to comply with the law and paid a $5,000 penalty. This is the only litigation reported by Duck Donuts Holdings, LLC.
Bankruptcy History
Duck Donuts Holdings, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Duck Donuts Holdings, LLC franchisees must be in full compliance with their agreement and have committed no more than three defaults during the current term. They must provide written notice to Duck Donuts Holdings, LLC at least six months before the agreement expires, secure the right to continue occupying their current premises (or obtain approval to relocate), pay a renewal fee of $7,500, update their equipment and other business assets to meet current specifications, sign a general release, and comply with current qualifications and training requirements, including any additional training.
Training & Support Program
Franchisor Assistance
Duck Donuts Holdings, LLC provides franchisees with pre-opening assistance, including site selection guidelines and acceptance, specifications for the store's layout, design, appearance, and signage, and optional on-site construction inspections. Franchisees receive the Operations Manual, a list of required equipment and products, initial management training, and approval for their grand opening marketing plan. After opening, Duck Donuts Holdings, LLC offers ongoing support such as mandatory or optional additional training programs (up to 5 days per year, plus a 3-day annual business meeting), remedial on-site training (for a fee), individualized consultation by phone, video conferencing, or email, samples of advertising and promotional materials, business inspections, updated lists of approved suppliers, recommended minimum and maximum prices, and approval of franchisee-proposed advertising materials.
Initial Training Hours
84
Training Location
Mechanicsburg, Pennsylvania
Ongoing Support
After opening, Duck Donuts Holdings, LLC franchisees receive ongoing support through mandatory or optional additional training programs (up to 5 days annually, plus a 3-day annual business meeting or conference). Remedial in-territory training is available upon request (for a fee), as is individualized assistance by telephone, video conferencing, or email, subject to personnel availability. Duck Donuts Holdings, LLC also provides samples of advertising materials, conducts inspections of the business, and updates lists of approved suppliers. The franchisor may recommend minimum and maximum prices and must approve all franchisee-proposed advertising and promotional materials.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
limited
Territory Size Requirements
Duck Donuts Holdings, LLC defines franchise territories as all or a portion of a town, city, or county, identified by a marked map and/or a list of contiguous zip codes. The size of each territory is determined on an individual basis, taking into account factors such as minimum numbers of households, average home prices, and household incomes.
Staffing Notes
Duck Donuts Holdings, LLC requires that a Duck Donuts certified general manager, who may be the franchisee or a principal, must devote full-time efforts to supervising and managing the franchised business. This manager must successfully complete the Initial Management Training Program. All other personnel who will have access to proprietary and confidential information must sign a Confidentiality and Non-Compete Agreement. Duck Donuts Holdings, LLC provides guidelines for staff recruitment, hiring, job positions, scheduling, and uniform policies, as detailed in the Operations Manual.