Mister Donut offers 90-day trial period for franchisees

MANILA, Philippines — Doughnut chain Mister Donut has rolled out a franchising scheme allowing franchisees to see if their chosen location for the business is profitable within a 90-day trial period.

Under the business trial package, a Mister Donut franchisee would have to pay P100,000 to cover rental of the assets, basic small wares, coronavirus disease shield, as well as team member uniform, crates cabinet, mobilization fee, product deposit, and incidental expense bond.

Half of the investment for the business trial package is refundable.

Those interested in the business trial package should already have an available site for the shop covering a minimum of four square meters.

After the three-month trial period, Mister Donut franchise management head Cherryl Carino said the shop, if found to be profitable, could be converted to a regular store.

To be converted to a regular store, the shop should have at least P10,000 profit 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.

Mister Donut’s regular franchise costs 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 those with dine-in.

If the metrics are not met, the shop would have to be closed and the franchise applicant may then propose to go through the trial period in another location.

Carino said the business trial package is being made available for those who want to try to have their own business with small capital.

“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,” she said.

At present, there are 500 Mister Donut stores nationwide, with bulk or 94 percent franchised.

Mister Donut has 20 plants strategically located in Luzon, Visayas and Mindanao to serve the stores.

Aside from doughnuts, Mister Donut sells baked products, beverages, “snackwiches” and light meals.