Randy's Donuts 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
$277,000 - $1,192,000
Randy's Donuts: Crafting Iconic Donuts and Building a Legacy in Los Angeles
Randy's Donuts is a renowned donut shop that has become an iconic symbol in Los Angeles, California. Founded in 1953, Randy's Donuts is famous for its giant rooftop donut, attracting visitors worldwide and appearing in numerous movies, music videos, and television shows. The company is headquartered in Inglewood, California, and has expanded to several locations within the state.
The franchise began its expansion in 2019, offering opportunities for passionate entrepreneurs to open their own Randy's Donuts locations. Known for its handmade donuts that are crafted fresh every morning, Randy's Donuts has earned a reputation for quality and consistency, making it a favorite among locals and tourists alike.
Randy's Donuts differentiates itself from the competition with its unique branding and commitment to tradition, maintaining the classic recipes that have made it one of the top-rated donut shops in the country.
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.
Randy's Donuts offers 3 types of franchises:
| Location Type |
Initial Investment |
| Kiosk (Non-Baking) |
$277,000 to $374,000 |
| Drive-Thru Location |
$998,000 to $1,192,000 |
| In-Line (Non-Drive-Thru) Location |
$606,000 to $749,000 |
We are summarizing below the main costs associated with opening a Drive-Thru Randy's Donuts Location.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
Drive-Thru Randy's Donuts Location
| Type of Expenditure |
Amount |
| Initial Franchise Fee |
$35,000 |
| One Month’s Rent |
$7,000 – $15,000 |
| One Month’s Security Deposit |
$7,000 – $15,000 |
| Architect Fee |
$30,000 – $45,000 |
| Construction / Leasehold Improvements |
$725,000 – $800,000 |
| Furniture, Fixtures, and Equipment |
$85,000 – $105,000 |
| Surveillance System |
$5,000 – $7,000 |
| Signage |
$10,000 – $20,000 |
| Opening Inventory and Supplies |
$7,500 – $12,000 |
| Point-of-Sale and Computer Systems |
$11,000 – $13,000 |
| Market Introduction Program |
$10,000 |
| Training Expenses |
$10,000 – $15,000 |
| Travel-Related Expense Reimbursement for On-Site Opening Assistance |
$5,000 – $10,000 |
| Insurance (Annual) |
$5,000 – $7,500 |
| Professional Fees |
$2,500 – $7,500 |
| Business Licenses and Permits |
$3,000 – $5,000 |
| Miscellaneous Opening Costs |
$10,000 – $20,000 |
| Additional Funds – 3 Months |
$30,000 – $50,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT (including real estate costs) |
$998,000 – $1,192,000 |
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Franchise Disclosure Document
Training
Randy's Donuts Franchise provides comprehensive training to its franchisees to ensure they are well-prepared to operate their locations successfully.
- Initial Training at Headquarters: Franchisees undergo comprehensive training at the company's headquarters in Inglewood, California. This training takes place during the construction of the new franchisee’s store and covers all aspects of running a Randy’s Donuts location, including daily operations, customer service, and management.
- Hands-on Training: The initial training is hands-on, ensuring that franchisees are familiar with the practical aspects of donut preparation, store operations, and maintaining the quality standards set by Randy's Donuts.
- New Store Opening Support: For the first two store openings, Randy’s Donuts provides a dedicated new store opening team. This team assists franchisees with setup and operations during the critical early days of opening, offering on-site guidance and support.
- Continuous Corporate Support: After the initial training and store openings, franchisees continue to receive support from the corporate team to help them navigate challenges and ensure consistent operation in line with Randy’s Donuts brand and quality standards.
Territory Protection
Randy's Donuts franchise offers territory protection to its franchisees, ensuring that each franchisee has an exclusive area where no other Randy's Donuts franchise will be established.
This territorial exclusivity helps protect franchisees' investment by minimizing direct competition from other franchisees within a certain geographical area. The size and specifics of the protected territory are determined during the franchise agreement process, based on factors such as market potential and local demographics.
The franchise agreement outlines the terms and conditions under which territory protection is granted. This includes the duration of the exclusivity and any conditions that could lead to changes in the protected area.
