Mister Donut has launched a franchising scheme that gives franchisees a 90-day trial period to test if their store locations will be profitable or not.
Mister Donut’s “Business Trial Package” entails a cash outlay of as low as P100,000. The amount already covers the rental of the assets, basic small wares, COVID shield and team member uniform, crates cabinet, mobilization fee, product deposit and incidental expense bond.
A prospective franchisee should have a readily available site with a minimum size of 4 square meters.
Cherryl Carino, franchise management head at Mister Donut, said that after three months of trial, a test market location can be converted into a regular store. For a site to pass, it should yield an actual profit of at least P10,000 per month and show a return on investment potential within 24 months.
“If it passes the metrics for feasibility and viability, the franchisee will now pay the franchise fee and invest on a regular package suited to the location,” Carino said.
If the test market store is not feasible, however, the shop will be closed. The franchise applicant may opt to propose another location and run a test market store again.
The package costs of Mister Donut’s regular franchise offers are P285,000 for indoor kiosks, P380,000 for outdoor kiosks, P500,000 for inline kiosks, P1.4 million for counter cafes and P2.4 million for dine-in types.
“We want to give budding entrepreneurs and even long-time businessmen a great opportunity to try the Mister Donut business and be our partners at this time when many are probably risk-averse because of the pandemic. This franchising package gives them more flexibility at very low initial investment,” Carino said.
She said: “The Business Trial Package is a good venture for those who are first-time entrepreneurs and would like to start small in terms of capital. Of the P100,000 investment, P50,000 is refundable.”
Mister Donut has over 500 stores nationwide, 94 percent of which are franchised. These outlets are being served by 20 Mister Donut plants in Luzon, the Visayas, and Mindanao.
Aside from donuts, Mister Donut also offers a variety of baked products, beverages, “snackwiches” and light meals.