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Below is an in-depth analysis and side-by-side comparison of Dunkin' vs LaMar's Donuts including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $199,700 - $1,688,200 | $288,500 - $366,500 |
Franchise Fee | $40,000 - $90,000 | $28,500 |
Royalty Fee | 5.9% | 5% |
Advertising Fee | 5% | - |
Year Founded | 1950 | 1960 |
Year Franchised | 1955 | 1993 |
Term Of Agreement | - | 10 years |
Term Of Agreement | - | 10 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/Yes | No/No |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | Prior to opening your first Restaurant, you (one person) must attend a 3-day franchise business course conducted throughout the year in the Boston, Massachusetts, area. Following completion of that course, both the franchisee candidate and a designated representative must complete the Dunkin' Donuts Core Initial Training program, which includes classroom/instructional time that may be held at Dunkin' Brands University in Braintree, Massachusetts, or Orlando, Florida, or in a designated training Restaurant. Some of our required classes are only offered on the Internet as web-based training. On-The-Job Training: 244-354 hours Classroom Training: 45-54 hours | As needed |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
Absentee ownership of franchise is NOT allowed. |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
In 1946, Bill Rosenberg established Industrial Luncheon Services, an organization that conveyed suppers and snacks to specialists in the Boston region. The accomplishment of Industrial Luncheon Services persuaded Rosenberg to begin The Open Kettle, a donut shop in Quincy, Massachusetts. After two years, The Open Kettle changed its name to Dunkin' Donuts.
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.