Although Dunkin’ has been a staple of the New England and New York area since the 1950s, the chain never really made aggressive moves to expand throughout the rest of the United States until recent years. The chain has made a particularly strong westward push as of late, establishing a major foothold in Iowa and concentrating their most rapid expansion efforts on California, Nevada, Texas, New Mexico and Arizona. There are franchise opportunities just about everywhere, however, as the company seeks to have a strong presence in every state. As of this writing, only the Pacific Northwest states and Alaska are not currently available.
Franchisees can expect a minimum start-up cost of roughly $250,000 in smaller markets. In larger cities with higher rent, that cost may range up to $1.5 million. Gas & convenience units and APUD units can potentially cost less than half of these amounts to start up, however.
The major competition for most franchise owners is on the coffee front, with Starbucks so thoroughly established throughout the length and breadth of the country. Starbucks has little to offer customers who are specifically seeking donuts, however, and the only donut chain that has anywhere near the name recognition and advertising power of Dunkin’ is the struggling Krispy Kreme.
It is also important to note that Dunkin’ Donuts franchisees are not granted an exclusive territory. The company has employed a strategy of saturation in certain cities such as Las Vegas, Phoenix and Dallas.
If you live in one of the northeastern states, you might think it’s strange that Dunkin Donuts franchise would be considered one of the fastest-growing restaurants. After all, the chain has already been dominating the morning coffee and donut scene there for decades now. Interested in owning a franchise and looking for financing help for all your Dunkin Donut franchise fees? Contact us to learn about our simplified loan application process and our service advantage.