Dunkin’ Donuts Franchisor Franchisee Model
Franchisors have to constantly think about innovative ways to grow.
While I like other coffee shops better for coffee and reading a book, Dunkin’ Donuts has one of the best franchisor franchisee models anyone franchisor can learn from.
They don’t allow a franchisee to buy just 1 franchise anymore – they have so much demand, the minimum is 3 now.
They make $40k-$90k each location with 2%-6% royalties and a 5% advertising fee. They are making close to 10% of every individual location plus getting a size-able 5 figure sum.
The parent company is in control of practically everything.
No item is sold in Dunkin that isn’t a Dunkin Donuts product.
Coffee, donuts, branded cups, etc.
It all comes from Dunkin’ the parent company. They have to buy all products from Dunkin’ including anything they want to sell
You may not be in food and beverage, but how can you create quality products and services your franchisees need on a daily basis, not as a form of leverage, but as a form of something they know is how things work when they sign up.
Dunkin’s demand is through the roof, because they are profitable.
The parent company has heavy control when it comes to store size, what layout the store has, branding, products, etc.
A franchisee has to submit plans to the parent if it wants to change something.
It takes time to build up to a strong franchisor model, but that’s what you want it to be if you want reasonable control over your franchisees to maintain a brand image.
You still want to keep it fun for the franchisees, but have some protocols in place where it comes back to the parent company
Dunkin’ gives franchisees opportunities such as allowing franchisees to submit ideas to the parent company and the parent company will pay the franchisee outright if they want to implement the idea.
Dunkin’ offers a store, marketing, training, on-site help, off-site help, real estate experts, construction experts, etc.
A business buys a lot fo products and services.
You, as a parent company, can be the purveyor of quality products and services they are necessarily going to buy, if you choose to.
Leverage a consultant who can help you see things from the outside, you are not seeing with tunnel vision. Bring on new blood. It doesn’t have to be costly.
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