While I personally prefer other coffee shops for my coffee and reading, Dunkin’ Donuts offers one of the best franchisor-franchisee models that every franchisor can learn from.

Due to overwhelming demand, Dunkin’ no longer allows franchisees to purchase just one location — the minimum now is three franchises per franchisee. This approach ensures committed partners and scalability.

Each location generates $40,000 to $90,000 in royalties for the parent company, with fees ranging from 2% to 6% in royalties plus a 5% advertising fee. This means Dunkin’ earns close to 10% of every location’s revenue, along with a sizable fixed sum.

The parent company tightly controls nearly every aspect of operations. No item sold in Dunkin’ stores comes from outside the Dunkin’ system — coffee, donuts, branded cups, everything is supplied by the parent company. Franchisees must purchase all products from Dunkin’, maintaining consistent quality and branding.

Even if your business isn’t in food or beverage, think about how you can develop high-quality products or services that your franchisees need daily — not as a control tactic, but as a natural part of how the franchise operates.

Dunkin’s demand remains strong because their franchisees are profitable and their brand consistent.

The parent company also controls store size, layout, branding, and products. Franchisees must submit any proposed changes to the parent company for approval, preserving the brand image across locations.

Building a strong franchisor system like this takes time, but it’s essential if you want reasonable control over franchisees while maintaining brand integrity.

At the same time, Dunkin’ keeps it fun and engaging for franchisees by allowing them to submit ideas to the parent company — if Dunkin’ decides to implement the idea, they pay the franchisee directly. This encourages innovation and partnership.

Dunkin’ also offers comprehensive support, including store setup, marketing, training (both on-site and remote), real estate guidance, and construction experts.

Every business buys a range of products and services. As a franchisor, you can become the go-to provider of quality products and services your franchisees will consistently need — if you choose to.

If you want to grow your franchise thoughtfully and avoid tunnel vision, leverage a consultant who can provide fresh perspective and expertise. It doesn’t have to be costly — but it can be game-changing.