Review of the Daylight Donuts Franchise Opp and Startup Costs

Do you love donuts? Would you love to operate a location that makes fresh donuts every morning? If so, then what you might want to consider owning is a Daylight Donuts franchise. Franchise, however, isn’t really the correct term because you become a licensee as a Daylight Donuts operator, not a franchisee. That means you don’t have to pay a franchise fee or any royalties to Daylight Donuts in order to owner and operate your location. You simply agree to use products from Daylight Donuts in exchange for using the name.

How popular is this brand? There are over 900 licensee locations right now and the number continues to grow! If you’d like to put your money into tangible assets instead of fees, then this is the opportunity you’ve been waiting to find!

It all began in 1954 when the Day family, Tommy and Lucille, wanted to have a donut that wasn’t the typical heavy cake donuts that you can still typically find today in many shops. They wanted a donut with a lighter texture and tremendous flavor. Based in Tulsa, the Day family began making these unique donuts and in the 6 decades since the first donut was made, the brand has become a global force for the creation of awesome donuts.

Who Should Become a Licensee of Daylight Donuts?

Because this is your business and your money going into the assets, then in many ways you get to control all the shots when it comes to your new location. There are some characteristics in a new licensee that Daylight Donuts likes to see during the application process, however, and they may deny your application if you don’t have these attributes:

The desire to work full-time as an owner-operator of your venture. If you’re thinking about being an absentee owner, there is a higher likelihood of having your licensee application rejected. Daylight Donuts wants people who are highly involved in their business to help further the brand name and each licensee’s profitability.

An understanding of the unique licensee relationship. When you operate a Daylight Donuts location, you’re not paying royalties to maintain your agreement. You’re instead maintaining the integrity of the brand name itself by using only specific products that are then sold to the general public. This drives down the initial costs of ownership, but does tend to restrict you in terms of selling your own goods through your storefront.

A proven background of success and stability. Because you’re representing the brand itself, Daylight Donuts strives to find people who have a proven track record of business success in the past. If this is your first licensing or franchising opportunity that you’ve considered, then the stability of your previous employment will be looked at as a measure of approval or denial of your application.

A net worth of $50,000 minimum. You must also be able to have available in cash, right now, $50,000 that are not borrowed funds. You must also be able to prove that you have the ability to borrow additional funds should that become necessary for the good of the franchise.

Above and beyond, however, there must be a desire to serve your local community with the line of products that is offered by Daylight Donuts. If you don’t have a passion for donuts and retail service, then you may find your application denied even though you meet every other qualification.

What Can You Sell as a Daylight Donuts Licensee?

Daylight Donuts has developed an entire line of proprietary products for distribution through local licensee storefronts. It starts with their dry-mix facility, which creates state-of-the-art mixes for donuts to be made in each shop. There is a mix for every donut imaginable and even some other breakfast pastries as well.

Daylight Donuts also offers coffee in their stores that carries their own brand name. It’s a medium-roast coffee that is available for customer purchase in a 12 ounce size and you have access to bulk purchases for brewing coffee daily. Most importantly, this brand never lets anything become day old or stale. Once a product has reached its shelf life, which can be very quickly when discussing fresh pastries, they are pulled down and new products are made.

You’ll Still Get All the Training You Need

Do you still get any training to operate your new Daylight Donuts location since you aren’t paying any royalties or franchise fees! Of course you do. The management team from this brand will help guide you through the initial process of getting your new storefront setup step-by-step. You’ll get advice on how to best make each dry mix become a fantastic donut. They’ll help you scout your community for the best location of your new store. You’ll even receive assistance in finding the right equipment to make your store a success!

Although you are purchasing your inventory directly from Daylight Donuts, that’s where the costs toward the brand stop. You get to keep all the profits that your storefront generates. If you want advertising, then you’re responsible for its creation. If you want to market your new location, then go forth and do it! The Daylight Donuts team will be able to advise you on what they’ve developed as best practices and your agreement prevents you from harming the brand, but you can grow as slowly or as quickly as you desire.

Is Daylight Donuts the right business opportunity for you? It is if you have low levels of capital right now, a lower net worth that doesn’t reach 6 figures, and the ability to secure financing right now for reasonable terms. Keep in mind that many donut shops open early to serve the commuting customer and the ownership is expected to be fully involved with the service on a daily basis! If you love donuts and love making people happy, then this could be the perfect chance for you to make a wise investment.