Dunkin’ Donuts is a global franchise in the fast-food restaurant market, more popular for its coffee as well as doughnuts. There are some guidelines that should be observed before venturing into the opening of a Dunkin’ Donuts franchise in India. Keep reading this guide to discover the Dunkin Donuts franchise cost in India and other factors you need to consider before venturing into this franchise business.
What is a Dunkin’ Donuts Franchise?
A Dunkin’ Donuts franchise permits you to own your Dunkin’ Donuts store, where you sell and serve baked products. You get to sell their doughnuts, coffee, and other products like their signature products. In return, you pay some fees and follow their laid-down rules and regulations.
How Much Does It Cost?
The Dunkin Donuts franchise cost in India depends on the area of the store, size, and other factors. Here is a breakdown of the key costs involved:
- Franchise Fee: This is the first expense you incur with Dunkin’ Donuts, to be allowed to use their brand on merchandise. In India, this fee ranges from INR 20 lakh to INR 30 lakh.
- Setup Costs: These are the expenses of establishing the store properly with chairs, utensils, and decorations among other things. This can vary between INR 40 lakh to INR 60 lakh, depending on the size of the store as well as its location.
- Royalty Fees: You have to give a specific amount of the sales every month to the Dunkin’ Donuts company. It generally ranges between 5-8%.
- Marketing Fees: Dunkin’ Donuts will collect a national marketing fund. This is mandatory. This generally remains within 2% of the sales per month.
Total Investment Needed
If you are going to open a Dunkin’ Donuts franchise in India get ready to invest between INR 1 crore to INR 1.5 crore. This consists of the initial franchise cost, the expense of establishment, and other expenses.
Factors Influencing the Cost
Several factors can influence the Dunkin Donuts franchise cost in India:
- Location: The stores based in metropolitan cities like Delhi, Mumbai require higher setup cost as the rent and construction cost are higher in those cities.
- Size of the Store: Large stores will need more investment in equipment and furniture as compared to small stores.
- Local Regulations: There can be additional licensing fees or several regulations in a certain city or state that can influence the total Dunkin Donuts franchise cost in India.
Steps to Apply for a Franchise
If you are interested in opening a Dunkin’ Donuts franchise in India, here are the steps to follow:
- Research: Know the market in your local area and decide whether to go for a Dunkin’ Donuts franchise.
- Prepare a Business Plan: Feel free to provide specific information as to where this business will be, to whom it will cater, and how much it will cost.
- Contact Dunkin’ Donuts: Visit their official website to download or complete an application form for a franchise.
- Meet with the Dunkin’ Donuts Team: They will go through your application with you and further note the next procedures.
- Secure Financing: Make sure you have enough capital, or get a loan to cater for the Dunkin Donuts franchise cost in India.
- Sign the Agreement: After approval, sign the franchise agreement and get ready for your store launch.
Conclusion
It is advantageous to open a Dunkin’ Donuts franchise in India. But it is quite costly and one needs to have a lot of knowledge about the market in which the business is to be run. With an overview of the Dunkin Donuts franchise cost in India and the process involved in opening this franchise, you can make a wise decision and avoid failure.
