Hurts Donut Company Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$504,000 - $825,000
Franchise Fee
$35,000
Min Cash Required
$5,000
Total US Locations
16
Business Summary
Hurts Donut Company offers the opportunity to own and operate a Hurts Donut Store, which provides customers with donuts featuring unique toppings and ingredients, along with full-service espresso. These stores operate in a distinctive, casual setting and are open 24 hours a day, 7 days a week.
Corporate History
Hurts Donut Company, LLC, was established on April 24, 2015, in Springfield, Missouri, and operates under the name The Hurts Donut Co. While the franchisor entity itself began offering unit franchises in 2015, its affiliate, T&C Ventures, LLC, which also does business as Hurts Donut Company, has been operating company-owned donut stores since 2013.
Financial Overview
Investment Range
$504,000 - $825,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$125,000
Minimum Cash Required
$5,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$285,000
Equipment Costs (High)
$623,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Hurts Donut Company's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company had negative members' equity in 2024 (-$45,214) and 2022 (-$90,690), though it was positive in 2023 ($24,141). Despite this, Hurts Donut Company has generated positive net income and strong cash flows from operating activities in recent years.
Financing Details
Hurts Donut Company offers financing for a portion of the initial franchise fee when a franchisee purchases three or five territories. The company itself provides this financing, covering up to 50% of the fee at a 12% annual interest rate, repayable over 60 months. There is no security required, but if the franchisee is an entity, its owners must personally guarantee the debt. There are no prepayment penalties. Default on the loan can lead to an accelerated payment obligation, costs, attorney fees, and franchise termination. Franchisees waive certain legal rights, including jury trials, in the event of default. Hurts Donut Company does not guarantee other franchisee obligations or receive payments for placing financing.
Performance Metrics
Total US Locations
16
Franchised Units
15
Corporate Units
1
Avg Square Footage
3,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hurts Donut Company has no litigation history to report.
Bankruptcy History
Hurts Donut Company has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Hurts Donut Company franchisees must be in good standing, provide written notice at least 120 days before the current agreement expires, and sign the franchisor's then-current franchise agreement, which may have different terms and conditions. They must also remodel, modernize, and redecorate their Hurts Donut Company Store premises to meet current brand standards, sign a general release of claims, and ensure they have a renewed lease for their location for the duration of the renewal term.
Training & Support Program
Franchisor Assistance
Hurts Donut Company provides comprehensive support starting before the store opens. Pre-opening assistance includes helping franchisees with site selection and lease negotiation, reviewing construction drawings, and offering telephone support throughout the build-out process. After opening, Hurts Donut Company ensures designated suppliers have ingredients and inventory, provides a list of approved vendors, and offers ongoing operational support for questions, which is subject to a support fee. The franchisor also manages a system-wide Marketing Fund, using it for local, regional, and national advertising campaigns, and requires franchisees to participate in general marketing programs and display promotional materials. Hurts Donut Company specifies required computer hardware, software, and POS systems like Square, LunchBox, and Raydiant digital menu boards, and maintains independent access to franchisee sales data. Franchisees are given access to the Confidential Operations Manual, which is updated regularly. Hurts Donut Company also conducts a mandatory initial training program for franchisees and their store managers covering all aspects of store operation.
Initial Training Hours
152
Training Location
Corporate headquarters in Springfield, MO and at the franchisee's store
Ongoing Support
After opening, Hurts Donut Company provides ongoing operational support to answer franchisee questions, which is covered by a Support Fee and Help Line fee. The franchisor may offer optional or mandatory continuing education programs for franchisees and their employees. Hurts Donut Company also administers a monthly Secret Shopper program, for which franchisees pay a fee. Franchisees are required to attend annual franchisee meetings and regional workshops when offered. Additionally, Hurts Donut Company continuously updates its Confidential Operations Manual and works to ensure a full line of ingredients and inventory from designated suppliers.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Hurts Donut Company defines franchise territories by specific geographic regions, using zip codes, natural, or political boundaries as detailed in Attachment 1 of the Franchise Agreement. Each territory typically includes a minimum population of at least 150,000 people.
Staffing Notes
Hurts Donut Company requires either the franchisee or a dedicated Store Manager to work a minimum of 40 hours per week managing the Hurts Donut Company Store. A trained owner, Store Manager, or employee must be present whenever the store is open, which is typically 24 hours a day, 7 days a week. For franchisees owning multiple locations, an additional Store Manager is required for each. All employees must be of good character and capable of completing the franchisor's initial training program, and they must sign a Nondisclosure and Non-Competition Agreement. Franchisees are responsible for maintaining a sufficient staff of trained employees to meet the company's operational standards.