Brand also hires experienced construction
project managers to help franchisees open shops quickly
HOUSTON , June 24,
2024 /PRNewswire/ -- Shipley Do-Nuts, one of the
nation's largest do-nut brands, released its latest Franchise
Disclosure Document (FDD) that outlines 23% lower investment costs
and higher average unit volumes (AUVs) and EBITDA, demonstrating
the growing brand's continuing commitment to offering attractive
franchise opportunities.
The new FDD presents several key financial highlights that
underscore the brand's robust performance and appealing franchise
proposition:
- Lower Investment Costs: Shipley Do-Nuts has added more
focus to in-line and endcap retail locations ranging from ~1,400 to
2,100 square feet, significantly reducing the total investment cost
for potential franchisees. The 2024 investment range is now
$496,400 to $1,029,000, representing a 23%-24% reduction in
costs compared to the 2023 range of $655,000 to $1,339,500.
- Enhanced Real Estate Flexibility: This new approach
offers greater flexibility in real estate options, which is
particularly beneficial for markets targeted for expansion.
- Strong Profitability and AUVs:
- EBITDA profitability is projected at 18%-20%.
- Top 25% AUVs are reported at $1.4
million.
- Top 50% AUVs stand at $1.2
million.
In addition to posting strong unit performance numbers, Shipley
has also further built out its Development team to include
experienced construction project managers to help franchisees
through every aspect of design, permitting and construction,
including overseeing timelines and conducting site visits to ensure
quicker shop openings without costly delays.
Ryan Pullin, Shipley's new
Director of Design, has nearly 15 years' experience in commercial
and retail construction project management, with a focus on cost
control. He joined the company after serving as President of Elite
3 Construction. Korelle Dickson, who joined the company as
Construction Project Manager, most recently served as Project
Manager at Cref and, prior to that, Project Director at Fluid DBT.
She is a certified engineer with a bachelor's degree in
architectural engineering from The University
of Texas at Austin.
"The construction phase can be a real pain point for
franchisees, who don't typically have a strong background in the
design and build part of the process," said Shipley Senior Vice President of Franchise
Development Keith Sizemore. "Ryan
and Korelle, who often have more experience than the general
contractor, can act as the franchisee's advocate to ensure that
buildout is efficient and costs are kept lower."
With this new focus on shorter timelines from signing to doors
open, Shipley franchisees have recently opened shops in under eight
months, substantially beating the industry standard of 12
months.
"Our focus on lowering investment costs, creating more
flexibility in real estate and shortening our construction
timelines is paying off for motivated franchisees who are opening
units and seeing a strong return on their investment," said
Sizemore. "This is especially important as we seek to more than
double our current footprint."
Shipley is actively recruiting franchisees in Georgia, Florida, North
Carolina and South
Carolina. Shipley also has opportunities throughout the
Southeast, the Mid-South and the Midwest. For more information,
visit ownashipleydonuts.com.
ABOUT SHIPLEY DO-NUTS
Founded in 1936, Houston-based
Shipley Do-Nuts is one of the nation's oldest and largest
do-nut brands, with more than 360 company-owned and franchised
restaurants across 12 states, serving up its famous do-nuts, coffee
and kolaches to generations of guests. Shipley is ranked No. 131
on Entrepreneur magazine's Franchise 500® 2023
list and No. 1 in its category, and it debuted at No. 209 on the
2023 Franchise Times Top 400. For franchising information, visit
ownashipleydonuts.com. Follow Shipley on Instagram and
Facebook @ShipleyDonuts.
Media Contact:
Ashley Lennington, SPM
Communications
Ashleyl@spmcommunications.com
214-379-7000
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SOURCE Shipley Do-Nuts