- Q: Do I require any special experience?
A: No, although having business experience is always an advantage. We provide comprehensive training for all areas of your new store, which covers theory and practical training at the RFG Academy and in one of our operating stores, plus extensive Coffee (Barista) training.
- Q: What is the term of a franchise agreement?
A:New franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further five (5) years. This may vary depending upon the term of the lease applicable to the site.
- Q: What is the total cost of acquiring and opening a Donut King franchise?
A: A new store can range in price from $280,000 to $380,000 + GST.
- Q: What does the total cost include?
A: It includes a fully fitted-out store and equipment, training, manuals and initial franchise fee but excludes a bank guarantee, working capital and GST.
- Q: Do I have to pay a deposit ? If so, when and under what circumstances would I lose my deposit or any part of it ?
A: $3,300 deposit is payable upon application. These monies, less the franchisor’s reasonable expenses (to a maximum of $300), are refundable if the application is not approved.
- Q: What are the ongoing fees of the franchise?
A: A franchise service fee of 7% (plus GST) of your total gross sales is payable in connection with the Donut King franchise system. A marketing contribution equal to 3% (plus GST) of your total gross sales is also payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each
store with promotional material and ongoing marketing services to facilitate constant attraction of new customers, increased average dollar sales and the frequency of purchase.
- Q:How much profit will I make? A: This depends largely on several factors such as the value of wages paid, cost of goods and other operating costs and generally how you operate your business. We have identified certain key performance indicators which are monitored in order to maximise your profitability.
- Q:Who selects the site? A: Donut King will select the site and secure the lease. Ultimately, however, you must satisfy yourself as to the suitability of the premises.
- Q: What initial franchise fees are payable?
A:• $50,000 (plus GST) – initial franchise fee
• $13,750 (plus GST) – training fee
• $3,000 (plus GST) – initial marketing fee The Franchisor’s Disclosure Document provides full details of all fees and costs in connection with the establishment of a Donut King franchise.
- Q: Do I need any other money to start?
A:It is recommended that you have money available to be used as working capital and as a minimum we would expect you to have $16,500. For example, this will cover costs such as accounting and legal fees, business and public liability insurance and your first day’s trading stock and packaging. You will also need to budget for accommodation and living away from home expenses while at our training academy in Queensland. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisor’s Disclosure Document.
- Q: What services are included in return for the franchise and marketing fees?
A: The services you will receive cover a wide range of
management assistance and operational services, including:
• On-going operational training, tools and support
• Marketing support including national advertising, public relations campaigns, media selection and national media placement
• Stringent quality control standards
• A Sales and Performance Manager to assist franchisees with all aspects of daily operations to ensure appropriate performance levels and quality standards.
- Q: Have you got any sites ready to go?
A: Yes. Refer to the Franchises Available section of our website for the complete state based listing of new and resale sites available.
- Q: Are Franchisees expected to actively work in store?
A: Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores.
- Q: Why should I purchase a Donut King franchise?
A: Donut King has been serving the Donut King Cinnamon Donut for over 30 years, and today Donut King is much, much more than simply just a donut shop. Generations have grown up sharing the Donut King experience; it’s a fun place for the young and the young at heart.
• Franchisees are provided with comprehensive training at our purpose built Training Academy on the Gold Coast with dedicated, experienced and qualified trainers
• Donut King is a proven franchise operating system
• Franchisees are provided with field training & ongoing support
• The Donut King marketing team are focused on national integrated advertising and promotional campaigns
• Donut King is a cash business offering minimal risk of bad debt
• Donut King franchisees have the opportunity to become a successful business owner.