Established in 1954, Daylight Donuts has emerged as one of the most popular doughnut shops in the United States. Today, the company has over 1,000 independently owned retail outlets worldwide, with about 35 new locations opening each year. If you're looking for a profitable business model, consider opening a Daylight Donuts franchise. You'll have a lot of flexibility and will keep all the profits you make.
TL;DR (Too Long; Didn't Read)
Unlike other companies, Daylight Donuts doesn't charge royalties and franchise fees. Entrepreneurs who open a Daylight Donuts franchise are required to sign a licensing agreement and invest $50,000 to $100,000.
Daylight Donuts Overview
This popular doughnut chain shop was founded by Durard and Carolyn Pendergraft, a couple living in Tulsa, Oklahoma. Back in the '50s, they developed a light doughnut mix and decided to sell it to independent retailers. They gave their first products to neighbors. Their business grew from a small local store to a global company with 430 licensed locations and more than 1,000 doughnut shops in the U.S. and overseas.
Compared to other doughnuts on the market, those made by Daylight Donuts are more flavorful and have a lighter consistency. The company produces 230,000 pounds of dough weekly, which is more than enough for over 2.5 million doughnuts.
Customers can also buy fresh cinnamon rolls, sausage rolls, cake doughnuts and the popular Daylight Donuts coffee. Branded products such as cups, mugs, T-shirts, hats and collectibles are available for sale on the company's website.
Why Start a Daylight Donuts Franchise?
As an entrepreneur, you may wonder whether you should start a business from scratch or invest in a franchise. Both options have advantages and drawbacks. Franchising doesn't guarantee success, but it helps mitigate the risks of going out on your own. If you choose this path, you will receive ongoing support, initial training and promotional tools.
Think of franchising as a proven business model. The company with which you team up already has an established product or service and a loyal clientele. The Daylight Donuts franchise is no exception. What makes it stand out is that it doesn't require entrepreneurs to pay upfront licensing fees or a franchise percentage as other businesses do.
In fact, Daylight Donuts store owners are not franchisees but licensees. This means they are granted legal permission to use the company's trademark and brand name as long as they sell its products and utilize its processes. To put it simply, you can only use its recipes and cooking procedures and may not develop, promote and sell your own products. Daylight Donuts provides everything you need to get your business off the ground, from training and coaching to ongoing assistance.
How to Get Started
The company's website doesn't list the exact requirements for opening a Daylight Donuts franchise, but you can reach out to its management team and submit your request. Other sources state that franchisees need anywhere between $50,000 and $100,000 to get started. Applicants who enjoy working with the public and have a solid professional background are highly preferred. Ideally, you should be financially stable and have experience working in a quick-serve environment.
Qualified candidates receive training and may consult the company's management regarding their store's location, business planning, advertising and other key aspects. What matters most is that you put in the time and effort to make it work. When you contact Daylight Donuts, let them know why you made this decision, what drives you and how much experience you have in business. Also, make sure you fully understand the licensor/licensee relationship and what it entails.
Starting a Daylight Donuts franchise isn't cheap. Be prepared to prove that you have the money needed to get started or that you can secure financing. If you qualify, you'll learn how to prepare the delicious mix that made this brand so popular. Additionally, franchisees can purchase the company's proprietary line of equipment and receive guidance every step of the way.
- Joplin Globe: Joplin Dude's Was First 'Daylight Donuts' Shop in Country
- Daylight Donuts: About Us
- Investopedia: Licensee
- Daylight Donuts: Own a Daylight
- Franchise Direct: Start a Daylight Donuts Business
- Franchise Cost: How Much Does It Cost to Own a Daylight Donuts' Franchise?
- Franchising Today: Daylight Donuts
- Federal Trade Commission: A Consumer’s Guide to Buying a Franchise
- According to the Daylight Donuts website, donuts are the second most profitable food in the Nation and in a normal operation, owners can expect gross sales to be allocated to 1/3 overhead, 1/3 food cost and 1/3 profit margin with the potential of these numbers to be exceeded based on management skills.
- Opening a Daylight Donuts Franchise actually requires a license agreement and not a franchise agreement. This allows individual owners to keep all the profits while still allowing them to open a business with the look and feel of a franchise, a federally protected trademark, branded packaging, uniformity in products and a protected territory.
- The Daylight Donut Flour Company doesn't take any percentages or charge any fees for a license.
- All profits belong to the individual owners.
- Make sure you can afford to run at a loss in the beginning. Even though this is a recognized chain which will help you in the marketing of your business, a majority of new businesses will run in the red for the first 1 to 2 years if for no other reason than to recoup their startup costs.
Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.