Hurts Donut Company Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$502,000 - $819,000
Royalty fee
7.00%

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Franchise Fee $35,000
Rent & Security Deposit $10,000 - $15,000
Initial Training Fee $10,000 - $10,000
Leasehold Improvements $200,000 - $350,000
Architectural/Engineering $6,000 - $15,000
Opening Inventory and Food Ingredients $40,000 - $70,000
Equipment and Smallwares $125,000 - $175,000
Furniture $9,000 - $12,000
Computer Hardware, Software, and POS System $2,000 - $5,000
A/V Equipment $1,000 - $5,000
Vehicle and Wrap $10,000 - $15,000
Signage/Art Package $15,000 - $40,000
Insurance $7,000 - $12,000
Travel and Living Expenses to Attending Initial Training $2,000 - $5,000
Retail Merchandise $25,000 - $35,000
Total $502,000 - $819,000

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Number of units

2023
Franchised units

20

19

18

Company-owned units

2

2

2

Total units

22

21

20

Franchise Disclosure Document

Hurts Donut: Revolutionizing the Donut Experience

Hurts Donut Company, founded in 2013 and based in Springfield, Missouri, is renowned for its creative take on traditional donuts, offering a diverse selection of inventive flavors and toppings. Prospective franchisees go through an extensive application process, including training at the headquarters, to ensure they are fully equipped to manage their own Hurts Donut location.

As an innovative and rapidly growing franchise, Hurts Donut Company is celebrated for its unique twist on the classic donut. The company was established on November 17, 2013, by Tim and Kas Clegg, inspired by Kas's passion for donuts and the couple's entrepreneurial drive.

In an extraordinary start, they crafted their first donut just twelve hours before launching their first store, having no prior donut-making experience beyond YouTube tutorials. With less than $7 in their bank account, they began on a shoestring budget and have since expanded to 16 locations across the United States.

Hurts Donut stands out with its imaginative and unconventional donut varieties, proudly described as "the rebel of all donuts." Each flavor is viewed as a "love letter" to their customers, featuring non-uniform toppings and bold tastes. This unique approach has earned them a devoted following and driven significant growth for the company.

Training 

Hurts Donut Company offers extensive training to franchisees, ensuring they have the skills and knowledge needed to run their store efficiently.

Initial Training Program

This three-week program combines classroom instruction with hands-on training at a designated location in Springfield, Missouri, or at the franchisee's store. It is led by seasoned instructors Timothy Clegg, Kasondra Clegg, and Scott Bussard, who bring extensive experience in the industry and with Hurts Donut Company.

Mandatory Orientation and Training Course

Franchisees and their Store Managers must attend a mandatory initial orientation and training course, lasting up to 14 days, at the franchisor's headquarters or another designated training location. Additionally, there is a 5-day training segment conducted at the franchisee's store before and after the Franchised Business begins.

Training Requirements

Franchisees and Store Managers are required to complete the training program to the franchisor's satisfaction and obtain a certificate of occupancy from the relevant jurisdiction before opening a Hurts Donut store. For those purchasing an existing Hurts Donut store, training may be condensed based on prior in-store experience. Training requirements may be waived for equity holders not involved in store operations.

Continuing Education Programs

Hurts Donut Company may provide optional or mandatory continuing education programs related to store operations or promotion. These programs may be offered by third parties and may involve additional fees. Franchisees are responsible for any travel, lodging, meals, and other incidental expenses incurred during training.

Territory Protection

The Hurts Donut Franchise Agreement does not provide franchisees with exclusive territorial rights. While franchisees are allowed to operate within a defined area, they should not expect protection from other franchisees or company-owned outlets entering the same territory.

The franchisor retains the right to establish additional franchises or other distribution channels within any franchisee's operational area. This could include direct competition from other Hurts Donut locations or alternative distribution methods such as online sales.

This strategy allows the franchisor to expand the brand and open new locations flexibly. However, it also means that franchisees may encounter competition from within the Hurts Donut network in their local market. Franchisees are encouraged to focus on delivering high-quality products and exceptional customer service to differentiate themselves and succeed in potentially competitive environments.

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