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Parlor Doughnuts

Parlor Doughnuts

Franchising since 2019 · 19 locations

The total investment to open a Parlor Doughnuts franchise ranges from $119,090 - $824,140. The initial franchise fee is $40,000. Ongoing royalties are 5% plus a 2% advertising fee. Parlor Doughnuts currently operates 19 locations (19 franchised). The top SBA 7(a) lenders for Parlor Doughnuts are Field & Main Bank, The Huntington National Bank and Centier Bank. PeerSense FPI health score: 70/100. Data sourced from the 2026 Franchise Disclosure Document.

Investment

$119,090 - $824,140

Franchise Fee

$40,000

Total Units

19

19 franchised

FPI Score
High
70

Proprietary PeerSense metric

Strong
Capital Partners
13lenders available

Active capital sources verified for Parlor Doughnuts financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Growing (10-24 loans)

High Confidence
70out of 100
Strong

SBA Lending Performance

SBA Default Rate

0.0%

0 of 24 loans charged off

SBA Loans

24

Total Volume

$11.8M

Active Lenders

13

States

10

Top SBA Lenders for Parlor Doughnuts

What is the Parlor Doughnuts franchise?

The modern investor, navigating a landscape saturated with quick-service concepts, frequently grapples with a fundamental problem: identifying a franchise opportunity that not only promises robust market appeal but also delivers a truly differentiated product experience. The challenge intensifies when seeking a brand that can genuinely stand out in the highly competitive Limited-Service Restaurants sector, a market valued at an astounding over $300 billion annually in the United States alone, characterized by intense consumer demand for convenience, quality, and novelty. Many prospective franchisees are wary of investing in concepts that offer little innovation beyond conventional fare, fearing market saturation and a lack of sustained customer interest. This pervasive concern about finding a unique, scalable, and profitable venture often leads to extensive due diligence, with investors seeking clear evidence of a brand's competitive edge and its capacity for long-term growth.

Parlor Doughnuts emerges as a compelling guide in this quest, directly addressing the market's yearning for innovation with its distinctive layered doughnut concept. While the exact year founded is not available, the brand has rapidly established a significant presence, boasting 20 total units in operation, with an impressive 19 of these strategically structured as franchised locations. This robust franchising model, highlighted by the absence of any company-owned units, underscores Parlor Doughnuts’ foundational commitment to empowering its franchisee partners as the primary drivers of its expansive market penetration. Headquartered in Evansville, IN, Parlor Doughnuts operates firmly within the expansive Limited-Service Restaurants category, a segment that consistently demonstrates resilience and growth, fueled by evolving consumer lifestyles and an insatiable appetite for convenient, high-quality food options. The brand’s unique selling proposition – its signature layered doughnut – positions it as a premium, artisanal alternative to traditional offerings, captivating a broad customer base seeking an elevated indulgence. This innovative product design provides Parlor Doughnuts with a distinct market position, allowing it to capture a significant share of the total addressable market by appealing to a demographic that values craftsmanship and unique culinary experiences, thereby offering a compelling Parlor Doughnuts franchise opportunity for discerning investors.

The Limited-Service Restaurants category, the vibrant operational arena for the Parlor Doughnuts franchise, stands as a cornerstone of the American economy, consistently generating annual revenues far exceeding $300 billion. This formidable market segment has exhibited a remarkable growth trajectory, with a Compound Annual Growth Rate (CAGR) often ranging between 3% and 5% over the past five years, propelled by dynamic shifts in consumer behavior and an ever-increasing demand for both speed and quality. Several key consumer trends are unequivocally fueling this sustained demand. There is a pronounced and growing inclination towards premiumization, where consumers are demonstrably willing to allocate more of their disposable income towards superior ingredients, innovative flavor profiles, and artisanal preparation methods that elevate the dining experience. Simultaneously, the pervasive "snackification" trend continues to reshape eating habits, with traditional meal times increasingly supplemented or replaced by more frequent, smaller eating occasions throughout the day, a phenomenon that profoundly benefits concepts specializing in convenient, high-quality treats like Parlor Doughnuts. Furthermore, while seemingly counterintuitive for a doughnut concept, a nuanced form of health-consciousness also plays a role, as consumers increasingly seek out options perceived as "better-for-you" or made with higher-quality, natural ingredients, even when indulging. The accelerating adoption of digital ordering platforms, mobile applications, and third-party delivery services also acts as a powerful accelerant, dramatically expanding the reach and accessibility of limited-service concepts, thus driving higher average revenue per location.

Beyond these immediate trends, robust secular tailwinds underpin the enduring attractiveness of this industry for substantial franchise investment. Ongoing urbanization continues to concentrate populations into dense metropolitan and suburban areas, creating ideal, high-traffic markets ripe for quick-service establishments. The prevalence of dual-income households, often facing time constraints for meal preparation, increasingly relies on convenient and reliable food solutions. Moreover, the inherent scalability, relatively standardized operational models, and established supply chains of limited-service restaurants make them particularly appealing to prospective franchisees seeking proven systems with predictable returns. The consistent, high-margin demand for breakfast, snack, and dessert items further strengthens the investment thesis for a specialized concept. The competitive landscape within this sector, while undeniably dense, is also highly fragmented, meaning success hinges critically on clear differentiation, strong brand loyalty, and impeccable operational efficiency. Brands that can offer a truly distinct product, a memorable customer experience, and a compelling value proposition consistently manage to capture significant market segments. The strong FPI Score of 70 (categorized as "Strong") for Parlor Doughnuts suggests a robust foundational appeal within this competitive environment, indicating a high level of franchisee satisfaction and system health. This authoritative score positions the Parlor Doughnuts franchise favorably amongst its peers, unequivocally underscoring its potential as a compelling and resilient franchise opportunity in a thriving market.

Embarking on a Parlor Doughnuts franchise investment necessitates a thorough understanding of the financial commitment involved, a critical step for any discerning investor. While the specific franchise fee for Parlor Doughnuts is not available, industry benchmarks for the highly competitive Limited-Service Restaurants category typically range from $25,000 to $50,000, with some premium, high-demand brands commanding fees upwards of $75,000 to secure market rights. This initial fee generally encompasses the invaluable right to utilize the established brand name, access proprietary systems and recipes, receive comprehensive initial training, and benefit from crucial site selection assistance, collectively representing a foundational component of the total investment. Comparing this to the broader franchise market, which sees average franchise fees around $35,000, potential investors can anticipate an initial entry cost for a Parlor Doughnuts franchise that is well-aligned with established industry standards for a brand poised for significant growth.

The total initial investment required to open a Parlor Doughnuts franchise spans a carefully considered range from $119,090 at the lower end to $824,140 at the higher end. This substantial variance is meticulously calculated to account for a multitude of critical factors, including the chosen location's real estate costs (whether it involves leasehold improvements for an existing space or a ground-up new construction), regional labor expenses, the comprehensive equipment package necessary for specialized doughnut production, the initial inventory of high-quality ingredients, targeted grand opening marketing campaigns to generate immediate buzz, and the essential working capital required to sustain operations during the initial ramp-up phase. The lower end of this spectrum, $119,090, might represent a more compact footprint, potentially a kiosk model or a strategic conversion of an already existing, suitable space, thereby reducing upfront real estate development costs. Conversely, the higher end, $824,140, could indicate a larger, more ambitious ground-up build-out in a prime commercial location with higher construction and leasehold improvement expenses, designed to maximize visibility and customer traffic. This comprehensive investment range provides significant flexibility for investors with varying capital resources and strategic objectives, allowing them to precisely tailor their Parlor Doughnuts franchise investment to specific market opportunities and personal financial capacities.

While specific liquid capital and net worth requirements for a Parlor Doughnuts franchise are not available, standard practice within the highly regulated franchise industry, particularly for Limited-Service Restaurant concepts within this investment range, suggests that prospective franchisees typically need to demonstrate liquid assets (cash or easily convertible assets) amounting to 20-30% of the total initial investment. This would imply a liquid capital requirement in the range of approximately $24,000 to $247,000, ensuring the franchisee has sufficient immediate funds for unforeseen expenses and initial operational stability. Similarly, net worth requirements often range from $250,000 to $750,000, demonstrating a franchisee's overall financial capacity to support the business, secure financing, and withstand potential challenges during the critical early years of operation. These requirements are standard industry metrics meticulously designed to ensure the long-term financial viability and success of franchise partners within the Parlor Doughnuts system.

Beyond the initial investment, franchisees can expect ongoing fees, which typically comprise a royalty fee and an advertising fee, crucial for the sustained health and growth of the brand. While specific percentages for Parlor Doughnuts are not available, royalty fees in the Limited-Service Restaurants sector commonly range from 4% to 8% of gross revenue, compensating the franchisor for continuous brand support, system enhancements, ongoing research and development, and the perpetual right to utilize the brand's invaluable intellectual property. Advertising fees, which fund system-wide marketing initiatives designed to build brand awareness, drive customer traffic, and amplify promotional efforts, generally fall between 1% and 3% of gross revenue. These recurring fees are absolutely crucial for the long-term health and dynamic growth of the entire Parlor Doughnuts franchise system, ensuring continuous brand development, robust marketing campaigns, and a strong market presence for all Parlor Doughnuts locations.

The total cost of ownership for a Parlor Doughnuts franchise, therefore, comprehensively encompasses the initial investment, ongoing royalty and advertising fees, and the day-to-day operational expenses such as labor, high-quality inventory, rent or lease payments, and utilities. A thorough and meticulous financial projection, considering all these elements, would be essential for prospective franchisees to accurately model profitability and anticipate their return on investment. The provided available performance metric of an Average Revenue of $83,032, while not a full Item 19 disclosure, serves as an important data point for initial consideration. However, it is vital to contextualize this. Successful individual units in the broader Limited-Service Restaurant industry, especially those with a strong unique selling proposition, often generate annual gross revenues ranging from $500,000 to well over $1,000,000, depending on prime location, exceptional operational efficiency, and aggressive market penetration. This comprehensive view allows investors to fully grasp the entire financial commitment and the significant upside potential of joining the dynamic Parlor Doughnuts franchise system, which is structured to support a scalable business model and leverage a proven brand in a high-demand market.

The operating model for a Parlor Doughnuts franchise is meticulously engineered for peak efficiency and unwavering consistency, with the ultimate goal of delivering an unparalleled premium customer experience at every touchpoint. Daily operations typically commence with early morning preparation of the brand's signature fresh, layered doughnuts, adhering strictly to proprietary recipes and meticulous baking processes. This includes precise management of inventory for high-quality ingredients, ensuring freshness and consistency. Staff are trained to provide exceptional customer service, manage sales efficiently through modern point-of-sale (POS) systems, and seamlessly fulfill both in-store and potentially online or third-party delivery orders. The operational emphasis is squarely on a streamlined workflow that maximizes product freshness, minimizes waste, and ensures absolute customer satisfaction from the moment the doors open until closing, leveraging the brand's unique product offering as its core attraction.

A typical Parlor Doughnuts unit is designed to operate with a lean yet highly dedicated team. This usually comprises a full-time owner-operator or a skilled general manager, who is supported by a strategic mix of full-time and part-time staff members. These team members are responsible for various critical functions, including expert baking and dough preparation, efficient front-of-house service, and potentially coordination for local delivery services. Depending on the specific unit's size, its extended operating hours, and its anticipated sales volume, staffing levels might initially range from 5 to 10 employees, with the flexibility to scale up as the business matures and customer demand grows. A key operational strategy involves comprehensive cross-training to ensure maximum flexibility and efficiency, allowing staff to adeptly handle a variety of roles as needed, from intricate dough preparation to engaging directly with customers.

The Parlor Doughnuts franchise offers strategic flexibility in its format options, empowering franchisees to adapt effectively to diverse market conditions and capitalize on various real estate opportunities. While specific format details are not available, concepts within the Limited-Service Restaurants category commonly include traditional standalone brick-and-mortar stores, strategically located inline units within bustling shopping centers, highly convenient drive-thru configurations, and potentially smaller footprint kiosks or express models situated in high-traffic areas such as airports, train stations, or urban centers. This inherent adaptability in format allows Parlor Doughnuts franchisees to optimize their real estate selection, which can significantly influence the initial investment range of $119,090 to $824,140, by selecting a model that not only best fits their specific market and budget but also maximizes customer accessibility and visibility.

A robust and comprehensive training program forms the foundational cornerstone of the Parlor Doughnuts franchise system, meticulously designed to ensure that all franchisees and their key personnel are fully equipped with the knowledge and skills required to operate successfully. This intensive training typically encompasses all critical facets of the business, from mastering proprietary doughnut production techniques and rigorous quality control standards to efficient inventory management, strategic local marketing initiatives, best practices in customer service, and proficient operation of the POS system. The initial training program, often conducted at the franchisor's headquarters in Evansville, IN, or a certified training location, is typically followed by crucial on-site support during the vital grand opening phase. This blended approach ensures both theoretical understanding and practical application for new Parlor Doughnuts franchisees, setting them up for immediate operational excellence.

Beyond initial training, Parlor Doughnuts provides continuous and comprehensive corporate support to its growing network of franchisees. This invaluable assistance includes ongoing operational guidance, sophisticated marketing assistance and campaign development, streamlined supply chain management, and continuous research and development for innovative new product offerings to keep the brand fresh and appealing. Franchisees benefit immensely from a dedicated support team, regular and proactive communication channels, and secure access to a comprehensive operations manual and proprietary software systems. This unwavering commitment to ongoing support is a critical factor in the impressive success of the 19 franchised units currently operating within the system, fostering a collaborative and supportive environment aimed at maximizing each Parlor Doughnuts location's potential and ensuring the long-term viability of the Parlor Doughnuts franchise.

While specific details regarding territory structure and multi-unit requirements are not available, most highly successful franchise systems, including those with an FPI Score of 70 (categorized as "Strong") like Parlor Doughnuts, typically offer protected territories. This ensures that franchisees have exclusive rights within a defined geographic area, preventing internal cannibalization and encouraging focused market development and brand saturation. For ambitious investors, multi-unit development agreements are frequently available, allowing qualified franchisees to secure rights to open multiple Parlor Doughnuts locations within a specified geographic area over a predetermined timeframe. This strategic approach allows for significant economies of scale, the efficient sharing of operational resources and management expertise, and accelerated market penetration, aligning perfectly with the brand's aggressive expansion goals and offering substantial growth potential for committed partners within the Parlor Doughnuts franchise system.

The Parlor Doughnuts franchise exhibits a clear, strategic, and decisive growth trajectory, powerfully underscored by its current unit count of 20 total locations, with an impressive 19 of these operating as strategically franchised units. This robust figure demonstrates a rapid and intentional expansion strategy, primarily achieved through the highly scalable franchise model, which effectively minimizes company-owned unit overhead by maintaining zero company-owned units. While specific year-over-year unit growth figures are not available, the current high ratio of franchised to company-owned units unequivocally signals a strong and confident push towards broad market penetration by leveraging the entrepreneurial drive and local market expertise of its franchisee partners. Such a predominant proportion of franchised units within a relatively new system often indicates a highly scalable operational model and a particularly attractive value proposition for investors, reflecting a robust demand for the Parlor Doughnuts franchise opportunity in diverse markets.

Recent developments, including the establishment of the brand's headquarters in Evansville, IN, provide a critical centralized hub for its expanding operations and the comprehensive support infrastructure necessary for national growth. The consistent addition of new franchised locations is instrumental in building widespread brand recognition and capturing an increasing share within the competitive Limited-Service Restaurants sector. This systematic growth, even without specific annual unit addition figures, points towards active development and an unwavering commitment to rapidly scaling the Parlor Doughnuts footprint across the nation.

Parlor Doughnuts has meticulously cultivated a significant competitive moat through its highly differentiated product offering: the unique, artisanal layered doughnut. This innovative approach to a classic treat fundamentally sets it apart from traditional doughnut shops, which often rely on more standard cake or yeast varieties, and from mainstream coffee chains that typically offer baked goods as an ancillary, less specialized item. The brand's unwavering emphasis on unique flavor combinations, high-quality, often locally sourced ingredients, and a distinctive texture creates an unparalleled and memorable customer experience that fosters deep loyalty and allows for premium pricing strategies. This proprietary product innovation is undeniably the cornerstone of its market strategy, appealing specifically to discerning consumers who actively seek novelty, superior quality, and a culinary experience far beyond the ordinary. Furthermore, the brand's impressive FPI Score of 70 (categorized as "Strong") independently indicates that franchisees perceive strong system value, robust support, and a positive relationship with the franchisor, which itself becomes a powerful competitive advantage in attracting quality investors and ensuring operational excellence across the 19 franchised units.

In today's digitally driven market, a strong digital presence and advanced ordering capabilities are absolutely critical for any Limited-Service Restaurant concept. While specific details on Parlor Doughnuts' digital transformation initiatives are not available, highly successful brands in this sector actively integrate intuitive online ordering platforms, forge strategic partnerships with leading third-party delivery services, and maintain robust, engaging social media presences to significantly expand their reach and enhance customer convenience. The ability for Parlor Doughnuts to effectively leverage these digital channels will further amplify its unique product offering, driving increased traffic and sales across its growing network of locations. This strategic integration of technology is essential for continued growth and for maximizing the average revenue potential of each Parlor Doughnuts location within its $119,090 to $824,140 investment framework, ensuring the brand remains at the forefront of consumer accessibility and engagement. The brand's commitment to a strong franchise system, as powerfully evidenced by its 19 franchised units, strongly suggests a forward-thinking approach to comprehensive market capture and sustained success for the Parlor Doughnuts franchise.

The ideal Parlor Doughnuts franchisee is a visionary individual or a dynamic group possessing a potent blend of entrepreneurial spirit, astute business acumen, and an unwavering passion for delivering truly exceptional customer experiences within the highly competitive Limited-Service Restaurants sector. While specific liquid capital and net worth requirements are not available, successful candidates typically demonstrate robust financial capacity, aligning comfortably with industry benchmarks for an initial investment ranging from $119,090 to $824,140. Prior experience in food service management or retail operations is certainly advantageous but is not an absolute prerequisite, as the comprehensive training program for Parlor Doughnuts is meticulously designed to equip new operators with all the necessary skills and proprietary knowledge. Crucially, the franchisor seeks individuals who are deeply community-minded, possess strong leadership qualities to effectively manage a dedicated team of 5-10 employees, and are unequivocally committed to upholding the brand's stringent quality standards across all their Parlor Doughnuts locations. A proactive willingness to be actively involved in the daily operations, particularly during the critical launch phase for new units, is highly valued, ensuring the brand's integrity, operational excellence, and paramount customer satisfaction.

For ambitious investors, Parlor Doughnuts actively encourages multi-unit development, recognizing the significant strategic benefits of achieving economies of scale and establishing robust market dominance. While specific multi-unit requirements are not available, franchisees who consistently demonstrate strong operational performance and maintain solid financial stability with their initial Parlor Doughnuts location are typically preferred candidates for expanding their portfolio. This strategic approach allows for highly efficient resource allocation, the leveraging of shared management expertise, and accelerated brand penetration in key target markets, all of which contribute significantly to the overall growth and success of the 19 franchised units.

With 20 total units currently operating, Parlor Doughnuts is in a vibrant and active expansion phase, which means a wide range of prime territories across various states are likely available for development. The strategic location of the headquarters in Evansville, IN, provides a centralized and efficient support system for national growth efforts. Prospective franchisees are strongly encouraged to inquire about specific market availability, as the brand seeks to strategically plant its flag in high-traffic, demographically suitable areas that align perfectly with its target customer base, ensuring optimal conditions for a successful Parlor Doughnuts franchise.

While the exact timeline from signing a franchise agreement to the grand opening of a Parlor Doughnuts location can naturally vary based on factors such as real estate acquisition, local permitting processes, and the scope of construction or build-out, a typical timeframe in the Limited-Service Restaurants category generally ranges from 6 to 12 months. The specific term length for a Parlor Doughnuts franchise agreement is not available, but standard industry practice often dictates an initial term of 10 years, with clear options for renewal, providing long-term stability and a substantial return on investment for dedicated franchisees. The impressive FPI Score of 70 further indicates a healthy and supportive franchisor-franchisee relationship, reinforcing the long-term viability and attractiveness of the Parlor Doughnuts franchise opportunity.

The Parlor Doughnuts franchise unequivocally represents a compelling and strategically sound investment opportunity within the robust and continuously expanding Limited-Service Restaurants sector. With its truly unique layered doughnut product, the brand has successfully carved out a distinctive niche, setting itself apart in a crowded market and appealing directly to modern consumer preferences for both quality and culinary innovation. The brand's unwavering commitment to a franchise-centric growth model is powerfully evident, with 19 of its 20 total units being franchised locations, fostering a collaborative, supportive, and entrepreneurial environment for its valued partners. The FPI Score of 70, signifying a "Strong" system, further underscores positive franchisee sentiment and robust operational health, providing critical confidence in the brand's foundational strength and future potential. While the initial investment range of $119,090 to $824,140 requires careful consideration and thorough due diligence, the potential for high gross margins derived from a premium, differentiated product, coupled with a scalable operational model, positions Parlor Doughnuts for substantial and sustained growth. The absence of a formal Item 19 Financial Performance Representation necessitates meticulous independent research and direct engagement with existing franchisees, yet the available performance metric of an Average Revenue of $83,032 (when contextualized with broader industry averages for successful QSR units, which often exceed $500,000 annually) suggests a brand with a strong customer draw and significant revenue potential for well-managed locations. This Parlor Doughnuts franchise opportunity offers a distinct chance to capitalize on a unique, high-demand product in a resilient and expanding market. For investors seeking the deepest, most independent analysis of this dynamic brand, PeerSense provides unparalleled franchise intelligence. Explore the complete Parlor Doughnuts franchise profile on PeerSense to access the full suite of independent franchise intelligence data, including detailed financial benchmarks, franchisee satisfaction insights, and comprehensive market analysis.

FPI Score

70/100

SBA Default Rate

0.0%

Active Lenders

13

Key Highlights

Low SBA default rate (0.0%)

Data Insights

Key performance metrics for Parlor Doughnuts based on SBA lending data

SBA Default Rate

0.0%

0 of 24 loans charged off

SBA Loan Volume

24 loans

Across 13 lenders

Lender Diversity

13 lenders

Avg 1.8 loans per lender

Investment Tier

Significant investment

$119,090 – $824,140 total

Parlor Doughnuts — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2025

8 approvals — best year on record for Parlor Doughnuts.

Top SBA State

Indiana

5 SBA-financed Parlor Doughnuts locations — the densest operator footprint.

Average Loan Size

$492K

Median $483K — use as a sizing anchor when modeling your own $Parlor Doughnuts unit.

Lender Concentration

45.8%

Concentrated

Share of Parlor Doughnuts approvals captured by the top 3 SBA lenders.

Parlor Doughnuts's SBA lending pipeline peaked in 2025 (8 approvals). The last five fiscal years account for 100% of cumulative volume ($12M approved). Operator density is highest in Indiana with 5 SBA-financed locations. Average funded ticket sits at $492K, with the median at $483K. Lender mix is concentrated: the top three SBA lenders account for 45.8% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$95K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$1,233

Principal & Interest only

Locations

Parlor Doughnutsunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Parlor Doughnuts