A Lifetime Opportunity
Donut Connection, as a co-op, operates quite differently from other Quick Service Restaurants (QSR’s). As we stated earlier, we encourage you to explore other QSR’s to learn their systems and opportunities, then compare them with Donut Connection.
Below is a summary of some of the provisions contained in the print version of our Offering Circular. Please read all the information below carefully.
Initial Franchise Investment
Capital Stock: Under the Company’s Bylaws, Members are required to subscribe for five (5) shares of capital stock of the Donut Connection Cooperative Corporation (A Delaware Corp.), having a total par value of $500.00 for each shop to be operated under the Donut Connection Name.
Advertising Fee: Donut Connection will make available to members, subject to such terms as it may establish from time to time, print advertising and related in-store point-of-purchase materials for use by members. Donut Connection may impose a fee, not to exceed $500.00 a year, upon members for the creation and development of these materials.
Physical Assets: Donut Connection, unlike other franchisors, is not in the business of real estate development or any type of lease arrangements with our members. It is the sole responsibility of all members to find ideal shop locations, and all of the physical assets involved with running your business. We can and will assist you in finding a location and will supply you with contacts for vendors such as baking equipment, menu boards, counter and seating, signage, coffee machines, refrigeration and virtually all supplies that you will need to open your store.
Signage: Members are required to purchase new external and internal signage bearing the Mark “DONUT CONNECTION®.” The existing external sign on the members shop must be either replaced entirely or fitted with a replacement front.
To ensure that our standards are up to par, Donut Connection will provide training in the operation of our business. We supply training under the following guidelines:
1. New Members with Limited Experience
If a member has had less than one year of experience in the business, the initial training program is located in Washington, Pennsylvania, a suburb of Pittsburgh, PA and lasts for three weeks followed by one week of training at the location of the member’s store. The program provides training in baking the product, inventory purchase and control, production sheets, profit and loss statements and similar activities in relation to the operation of the shop. The program at the member’s shop also will include assistance with hiring and training staff. Please contact your Donut Connection representative to discuss our current training costs.
2. Experienced New Members
If the member has at least one year of experience in the business, the training program is located at the member’s store and lasts 3 days. The training program will provide training in baking the product, inventory purchase and control, production sheets, profit and loss statements, assistance with hiring and training staff, and other similar activities in relation to the operation of the store. Please contact your Donut Connection representative to discuss our current training costs. As your store opens, Donut Connection is always available for operational assistance. We are constantly updating our products and exploring more efficient ways of making our member’s shops the most delicious in the donut related QSR industry!
See the subjects on the right for further information.