Parlor Doughnuts Franchise
Cost, fees, owner earnings, closure rate and litigation for a Parlor Doughnuts franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Parlor Doughnuts discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Provides 2024 actual monthly gross sales by location type (freestanding, end cap, in-line, drive-thru). Excludes atypical South Broadway Nashville location. Notes new franchise so results may not be typical.
What a Parlor Doughnuts franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $45,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $467,000 – $863,000 | Item 7 — franchisor's own low/high estimate |
5% royalty + 1% marketing + 1% local advertising. Technology fee $150/month. Multiple ancillary fees (training, convention, audit, non-compliance fines).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Parlor Doughnuts system size and owner turnover
| Total outlets | 96 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 4 |
| Closure rate | 0.0% of outlets |
Zero terminations/non-renewals 2023-2025. One non-opening franchisee (2023). Rapid expansion 87 units.
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 Parlor Doughnuts worth it? — how it compares to 32 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $467,000 | pricier than 68% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 5.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Parlor Doughnuts
The franchisor's framing: Provides 2024 actual monthly gross sales by location type (freestanding, end cap, in-line,… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Parlor Doughnuts franchise — frequently asked
- How much does a Parlor Doughnuts franchise cost?
- The FDD lists a total initial investment of about $467,000–$863,000, including a $45,000 initial franchise fee.
- How much do Parlor Doughnuts franchise owners make?
- Provides 2024 actual monthly gross sales by location type (freestanding, end cap, in-line, drive-thru). Excludes atypical South Broadway Nashville location. Notes new franchise so results may not be typical. We grade this disclosure C for honesty.
- What are the Parlor Doughnuts franchise fees?
- Parlor Doughnuts' FDD discloses a $45,000 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty + 1% marketing + 1% local advertising. Technology fee $150/month. Multiple ancillary fees (training, convention, audit, non-compliance fines).
- What is the Parlor Doughnuts franchise profit margin?
- Parlor Doughnuts does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Provides 2024 actual monthly gross sales by location type (freestanding, end cap, in-line, drive-thru). Excludes atypical South Broadway Nashville location. Notes new franchise so results may not be typical. Recurring fees alone take about 7% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Parlor Doughnuts franchise failure rate?
- Zero terminations/non-renewals 2023-2025. One non-opening franchisee (2023). Rapid expansion 87 units.
- How many Parlor Doughnuts locations are there?
- Parlor Doughnuts' FDD reports 96 total outlets, with 0 that ceased operations in the most recent reporting year and 4 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Parlor Doughnuts have complaints or lawsuits?
- Parlor Doughnuts 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 Parlor Doughnuts franchise worth it?
- It depends on the numbers, not the pitch. Parlor Doughnuts scores C on disclosure honesty, carries about 7% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Parlor Doughnuts to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Parlor Doughnuts or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.