FAST-GROWING SHIPLEY DO-NUTS RELEASES NEW FDD FEATURING LOWER INVESTMENT COSTS WITH HIGHER AUVS AND EBITDA

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
[email protected]
214-379-7000

SOURCE Shipley Do-Nuts