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SUBJECT DOSSIER · FDD 2026

Hurts Donut Company-Unit Franchise Franchise

Cost, fees, owner earnings, closure rate and litigation for a Hurts Donut Company-Unit Franchise franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Coffee & Donuts · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

Hurts Donut Company-Unit Franchise discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets18
Disclosed lawsuits0
Closure signals1 ceased
Investment
$504,000–$825,000
Total fees
9% of sales
Outlets
18
Closure signals
1 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 20
1 outlets ceased operations
2025: 1 reacquired by franchisor (Louisiana); 2024: net -4 outlets, 3 terminations

What their own earnings claim actually says

No financial performance representations disclosed. Franchisor explicitly disclaims representations about franchisee future or past outlet financial performance.

What a Hurts Donut Company-Unit Franchise franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$35,000Item 5 — paid up front, before you open
Royalty7% of gross salesItem 6 — charged on revenue, not profit
Advertising fund2% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees9% of gross salesBefore rent, labor, food or debt service
Total initial investment$504,000 – $825,000Item 7 — franchisor's own low/high estimate

7% weekly gross royalty; 2% marketing royalty not yet implemented; extensive operational penalties ($250-$1000 per occurrence)

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

Hurts Donut Company-Unit Franchise system size and owner turnover

Total outlets18
Ceased operations1
Terminated by franchisor0
Transferred to new owners0
Closure rate5.6% of outlets

2025: 1 reacquired by franchisor (Louisiana); 2024: net -4 outlets, 3 terminations

From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.

Is Hurts Donut Company-Unit Franchise worth it? — how it compares to 32 similar franchises

Ongoing fees9% of salessteeper than 63% of coffee & donuts franchises
Startup costfrom $504,000pricier than 77% of peers
Disclosure honestyGrade Fless honest than most of the category
Closure rate5.6% of outletsabout average
Disclosed lawsuits0fewer than most

Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a Hurts Donut Company-Unit Franchise

The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly disclaims repres… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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Hurts Donut Company-Unit Franchise franchise — frequently asked

How much does a Hurts Donut Company-Unit Franchise franchise cost?
The FDD lists a total initial investment of about $504,000–$825,000, including a $35,000 initial franchise fee.
How much do Hurts Donut Company-Unit Franchise franchise owners make?
Hurts Donut Company-Unit Franchise discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
What are the Hurts Donut Company-Unit Franchise franchise fees?
Hurts Donut Company-Unit Franchise's FDD discloses a $35,000 initial franchise fee, a 7% royalty on gross sales, a 2% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. 7% weekly gross royalty; 2% marketing royalty not yet implemented; extensive operational penalties ($250-$1000 per occurrence)
What is the Hurts Donut Company-Unit Franchise franchise profit margin?
Hurts Donut Company-Unit Franchise discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
What is the Hurts Donut Company-Unit Franchise franchise failure rate?
2025: 1 reacquired by franchisor (Louisiana); 2024: net -4 outlets, 3 terminations
How many Hurts Donut Company-Unit Franchise locations are there?
Hurts Donut Company-Unit Franchise's FDD reports 18 total outlets, with 1 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
Does Hurts Donut Company-Unit Franchise have complaints or lawsuits?
Hurts Donut Company-Unit Franchise discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
Is a Hurts Donut Company-Unit Franchise franchise worth it?
It depends on the numbers, not the pitch. Hurts Donut Company-Unit Franchise scores F on disclosure honesty, carries about 9% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Hurts Donut Company-Unit Franchise or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.