Can I Start a Dunkin’ Donuts Franchise in the UK?

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Ask any New Yorker where the best coffee can be found and, there’s a good chance that they’ll point you in the direction of the nearest branch of Dunkin’ Donuts. Dunkin’ Donuts is known for its moreish fresh doughnuts and excellent coffee and serves a staggering three million customers a day across 37 countries.

Despite this phenomenal success, we Brits were slow to get on board with this popular provider of sweet treats.

Dunkin’ Donuts first arrived in the UK in 1965 with an ambitious plan to serve up 250 outlets across the country.  Unfortunately, the UK population was unconvinced, and the project was abandoned in 1968.  A second attempt in 1988 didn’t fare much better. However, those resilient folk at Dunkin’ Donuts crossed the pond again in 2013 and is now rapidly growing a following in the UK.

So, before we answer the big question – “Can I start a Dunkin’ Donuts franchise in the UK?”, first we’ll take a look at the franchise business model:

A sweet deal

Lots of people in the UK dream of quitting their 9 to 5 and starting out in business for themselves. Unfortunately, many are put off by the cost of doing this and the risk of failure, understandably as one in five brand new businesses will fail within the first year of operation.

Franchising allows you to buy a chunk of an existing and established business and to run this yourself.  This is an excellent way of going into business for yourself without the huge costs and risks involved in going it alone. You’ll also get the benefit of the branding, experience and support of a well-known company.

To become a franchisee, you’ll be required to stump up an initial fee which is paid to the company (the franchisor) and which will give you access to all sorts of goodies like company branding and training.

Once your business is off the ground, you’ll pay the franchisor a monthly fee which is usually calculated as a percentage of your sales or profits.

Your franchise business will run on a contract basis and, at the end of the term, you’ll have the opportunity to renew your contract or walk away from your business.

Can I start a Dunkin’ Donuts Franchise in the UK?

The good news is that you can open a Dunkin’ Donuts franchise in the UK – if you have the cash and the experience.

Dunkin’ Donuts has 12 locations in the south of England, including London, and cabinet outlets in a number of major supermarkets.  The company plans to expand with another 144 franchises within the company in order to put its stamp on the Great British market.

Dunkin Donuts

How do I become a Dunkin’ Donuts franchisee?

If you have your sights set on a Dunkin’ Donuts franchise, there are a few things you need to know and, in this section, we’ll take you through what you can expect from your franchise – and what is expected of you:

All about the dough

To get started with a Dunkin’ Donuts franchise, you’ll need to pay an upfront investment fee of at least £33,810. You’ll also need to show evidence of liquid assets of around £160,000.  Depending on your financial circumstances, Dunkin’ Donuts is available to offer funding help to new franchisees.

Down to experience

To qualify for a Dunkin’ Donuts franchise, you’ll need to be able to demonstrate the following:

  • Experience within the food industry, preferably within a multi-unit company
  • Access to real estate
  • Strong negotiating skills
  • The ability to create a vision and strategy for your new business

What can I expect?

Once you’ve signed on the dotted line for your franchise, you’ll receive comprehensive training, including:

  • Field training
  • Operational systems
  • Business development
  • Marketing
  • Leadership
  • A three franchise business course

You’ll also receive ongoing support from the company to help make sure that you and your employees can run the business according to Dunkin’ Donuts strict guidelines.

How much money will I make?

The amount of profit generated varies from outlet to outlet. Still, within a busy city centre, the franchisee can expect to earn an income of £100,000 within the first couple of years of operation.

Conclusion

Right now is a great time to get on board with a Dunkin’ Donuts franchise as the UK market is far from saturated.  As well as the fact that Dunkin’ Donuts is rapidly increasing in popularity, the fast-food franchise industry in the UK is considered to be robust and virtually recession-proof, making this a great long term prospect for those looking to set themselves up in business.

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