Randy's Donuts Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Number of franchises

Investment required

$277,000 - $1,192,000

Revenue (AUV)

$1,387,000

Last 3 years unit growth

400%

Initial franchise fee

$35,000

Operating Profit

n.a.

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

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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.