In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a DonutNV franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a DonutNV franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned DonutNV outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the DonutNV franchise opportunity

Section V – Presentation and analysis of DonutNV’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 annual gross sales (event revenue, travel fees, gratuities), select expenses (food cost – supplies, fuel, merchant processing), adjusted net profit, franchise fees (Royalty, Brand Fund, Tech Fee), and adjusted net profit after franchise fees for the one DonutNV trailer operated by DonutNV’s affiliate in 2023

• 2023 number of events and average, median, highest, and lowest sales per event for the one DonutNV trailer operated by DonutNV’s affiliate in 2023

• 2023 actual, average, median, highest, and lowest gross sales for the 15 DonutNV franchisees that operated in 2023
  

Section VI – Key ratios, comparables, computations, and analyses for the DonutNV franchise opportunity (exclusive content for Platinum subscribers)

Section I – DonutNV Franchise Costs

• DonutNV franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Technology Setup and Marketing Package:  $2,250
• Tow Vehicle:  $0 to $3,000
• Vehicle Trailer, Equipment, and Supplies:  $114,650 to $124,650
• State Specific Trailer Upfit:  $0 to $20,000
• Delivery of Trailer:  $0 to $6,000
• Rent and Utility Deposits:  $0 to $9,000
• Furniture:  $0 to $500
• Computer and Software:  $30 to $2,500
• Additional Opening Inventory:  $100 to $5,000
• Insurance Deposits and Premiums (up to 12 months):  $5,000 to $10,000
• Pre-opening Travel Expense to Attend Training:  $2,000 to $5,000
• Market Introduction Program:  $500
• Professional Fees (lawyer, accountant, etc.):  $500 to $3,000
• Business Permits and Licenses:  $50 to $1,500
• Printing, Stationery, and Office Supplies:  $0 to $500
• Additional Funds (for first 3 months):  $5,000 to $20,000
• Total Estimated DonutNV Franchise Costs:  $189,580 to $272,900

Section II – DonutNV’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• DonutNV’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Franchise Fee:  $59,500 for a territory with up to 100,000 people. If your territory is larger than 100,000 people, the fee will increase by $0.50 per person.

• Royalty:  Year 1: $125 per week per unit; Year 2: $136 per week per unit; Year 3 through end of term: $146 per week per unit

• Brand Fund Contribution:  $200 per month per unit

• Local Advertising, Marketing, and Promotional Expenditures:  minimum of $200 per month per unit

Section III – Number of Franchised and Company-Owned DonutNV Outlets

Franchised

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  4
• Net Change:  +3

2022

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  16
• Net Change:  +12

2023

• Outlets at the Start of the Year:  16
• Outlets at the End of the Year:  98
• Net Change:  +82

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the DonutNV Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the DonutNV Franchise (Item 19, 2024 FDD)

• The following information shows past financial performance and is not a projection of future performance.

Part 1 – Adjusted Net Profit Statement for 2023 – One Company Unit

• There was one DonutNV trailer operated by DonutNV’s affiliate during 2023.

• The following material financial and operational characteristics of the business described in Part 1 may reasonably be anticipated to differ materially from future franchise outlets:

• The trailer operates in Pennsylvania.
• It began operating under the “DonutNV” brand name in 2018.
• The trailer is primarily operated by a manager (rather than being owner-operated).
• It does not have a specific territorial boundary.
• It does not have any expense associated with a commissary (whereas your state or local laws may require you to have access to a commercial kitchen commissary).

• The following table shows certain sales and expense information for the one DonutNV trailer operated by DonutNV’s affiliate in 2023.

Sales

• Event Revenue:  $159,639 (94.0%)
• Travel Fees:  $8,275 (4.9%)
• Gratuities:  $1,895 (1.1%)
• Gross Sales:  $169,809 (100.0%)

Select Expenses

• Food Cost – Supplies:  $18,031 (10.6%)
• Fuel:  $2,827 (1.7%)
• Merchant Processing:  $2,392 (1.4%)
• Total Select Expenses:  $23,250 (13.7%)

Adjusted Net Profit:  $146,559 (86.3%)

Franchise Fees

• Royalty:  $7,800 (4.6%)
• Brand Fund:  $2,400 (1.4%)
• Tech Fee:  $3,000 (1.8%)
• Total Franchise Fees:  $13,200 (7.8%)

Adjusted Net Profit with Franchise Fees:  $133,359 (78.5%)

• “Sales” means total of all revenue in a period, not including discounts, taxes, voids, or refunds. It includes travel fees and gratuities (other than gratuities paid in cash).

• “Select Expenses” means the specific expenses listed. Part 1 does not include all costs you would incur to operate a DonutNV business, such as costs of marketing, maintenance, insurance, or professional fees (such as legal or bookkeeping). Labor cost is omitted from expenses because DonutNV’s affiliate’s trailer was primarily operated by a person who was paid a percentage of operating profits.

• “Food Cost – Supplies” is the cost of all food inventory and related supplies, including donut mix and bags. DonutNV’s affiliate orders from the same vendors and pays the same prices as franchisees, except that for some events it used supplies from the DonutNV retail store in Pottstown, Pennsylvania. For those events, DonutNV estimated the cost of those supplies as if the trailer business had purchased them according to the normal procedure.

• “Adjusted Net Profit” is Gross Sales less the Select Expenses. It also does not include interest, taxes, depreciation, or amortization.

• “Franchise Fees” are the Royalty Fee, Brand Fund Contribution, and Technology Fee that the business would have paid if it had signed the form of Franchise Agreement attached to the disclosure document and was in its first year of operation (so that the Royalty Fee would have been $125 per week).

• “Adjusted Net Profit with Franchise Fees” is Adjusted Net Profit less Total Franchise Fees.

Part 2 – Events Conducted in 2023 – One Company Unit

• The following table shows the number of events conducted by the affiliate-operated trailer in 2023, and sales per event.

• Number of Events:  88
• Average Sales Per Event:  $1,930
• Number and Percentage Above Average:  41 (47%)
• Median Sales Per Event:  $1,581
• Lowest Sales Per Event:  $268
• Highest Sales Per Event:  $5,280

Part 3 – Sales by Franchisees in 2023

• This table shows certain sales information by DonutNV franchisees in 2023.

• Franchisee 1:  $230,260
• Franchisee 2:  $36,776
• Franchisee 3:  $61,347
• Franchisee 4:  $77,300
• Franchisee 5:  $81,118
• Franchisee 6:  $83,836
• Franchisee 7:  $91,857
• Franchisee 8:  $113,700
• Franchisee 9*:  $142,251
• Franchisee 10**:  $85,996
• Franchisee 11**:  $85,996
• Franchisee 12:  $193,000
• Franchisee 13:  $80,250
• Franchisee 14:  $31,339
• Franchisee 15***:  $200,871

• Average:  $106,393
• Number and Percentage Above Average:  5 (33%)
• Median:  $85,995
• Lowest:  $31,339
• Highest:  $230,260

• * This franchisee began operating a second trailer on November 1, 2023.

• ** This franchisee operated two trailers for all of 2023. They did not report separate sales data for the trailers, so for Part 3 DonutNV divided sales equally between their two trailers.

• *** This franchisee began operating a second trailer on October 20, 2023.

• In 2023, there were 16 DonutNV trailers operated by franchisees. One franchisee temporarily closed their trailer during 2023 and therefore was not included in Table 3.

• “Sales” means total of all sales in a period as reported to DonutNV by the franchisees.

• Some outlets have sold and earned these amounts. Your individual results may differ. There is no assurance that you’ll sell or earn as much.

Section VI – DonutNV Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️