Mister Donut to Offer ’90-day Trial’ of Franchise Package

Mister Donut will now give potential franchisees to test the waters out as they recently launched scheme that gives franchisees a 90-day guarantee to test whether the store location of their franchise will be profitable or not.

Called “Business Trial Package,” the new strategy only needs a cash outlay of P100,000.00, which will cover entail of the assets, basic small wares, coronavirus (Covid) shield, and team member uniform, crates cabinet, mobilization fee, product deposit, and incidental expense bond.

A prospective franchisee will only need a readily available site with a minimum of 4 square meters in order to apply for the Business Trial Package.

Cherryl Carino, franchise management head of Mister Donut, said that this strategy is aimed towards first-time entrepreneurs that would like to start with a small capital.

“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 PHP100,000 investment, PHP50,000 is refundable,” she said.

The site will then be tested for 90-days or 3 months to see if the place is and profitable. To pass, the site must yield an actual profit of at least PHP10,000 per month and show an ROI (return on investment) potential within 24 months.

Only then will the test market location may be converted to a regular store.

Cherryl Carino affirmed further that the franchisee will only pay for the regular franchise package if the test market location passes the metrics for feasibility and viability.

“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.

However, If the test market store is not feasible, 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 PHP285,000 for indoor kiosks, PHP380,000 for outdoor kiosks, PHP500,000 for inline kiosks, PHP1.4 million for counter cafes, and PHP2.4 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.

Mister Donut currently has over 500 stores nationwide, 94 percent of which are franchised. These outlets are being served by 20 Mister Donut plants located in Luzon, Visayas, and Mindanao.

Mister Donut also offers a variety of baked products, beverages, “snackwiches” and light meals. (GFB)