Is the DonutNV Franchise Too Good to be True?
DonutNV franchise opportunity: Big hype for mini-donuts. One of the most-promoted franchises of 2024, the mobile donut & lemonade trailer and food truck franchise is headed by Alex Gingold & Amanda Gingold, sold by Franchise Fastlane, and promoted by seemingly every broker organization including International Franchise Professionals Group (IFPG), Franchise Brokers Association (FBA), FranServe, Franchise Sidekick, Mark Schnurman’s The Perfect Franchise (TPF), and just about everyone else. We ask DonutNV franchisees: Does the DonutNV live up to the hype? by Sean Kelly (email the author at UnhappyFranchisee[at]Gmail[dot]Com)
Also Read:
DonutNV Franchise Earnings Claims: Accurate? Or Intentionally Deceptive?
Franchise Brokers: Have ZERO DonutNV Franchise Owners Failed?
(UnhappyFranchisee.Com) Seems like every franchise broker, correction, I mean, franchise consultant is excited about DonutNV!
Who wouldn’t be excited about tooling around in a cool food truck or trailer, selling mini-donuts and fresh-squeezed lemonade?
Booking pre-paid events averaging $2,000 or so?
Enjoying low labor-cost, high profit sales with state-of-the-art, practically maintenance-free equipment?
And best yet… Zero Failures!
With Zero Franchise Failures, DonutNV is Risk-Free… Right?
The current DonutNV Franchise Disclosure Document (FDD) is dated April 29, 2024 (as amended November 16, 2024).
Read: DonutNV Franchise Disclosure Document (FDD) 2024
It appears to have been produced and submitted to state franchise agencies by attorney Justin D. Csik, Partner, Corporate & Securities, of Klehr, Harrison, Harvey, Branzburg LLP of Philadelphia, PA.
It’s Item 20 indicates that there have been Zero Failures in the previous 3 years.
Only two franchisees left the system via transfer (sale) during that period (Marshall Moore, Elizabeth Moore, Roswell GA 30075, Andrew Nessler, Christine Nessler North Mankato MN 56003).
The 2023 DonutNV FDD and 2022 DonutNV FDDs also show no failures.
No wonder the franchise brokers are so excited.
Frannet Calls DonutNV “A Runaway Success!”
According to FranNet, “on the first day, it was clear that the concept was a runaway success.”
Franchise Fastlane’s Jennifer Cain sold so many DonutNV franchises she received multiple awards at the Franchoice Summer Conference last year.
Franchise Brokers Association (FBA) on DonutNV: “Proven Business Model,” “Financially Rewarding,” “Low Labor Costs,” “Control over “Profit Margins.”
The Franchise Brokers Association (FBA) states that the DonutNV franchise is “both fun to run and financially rewarding.”
“The business model’s flexibility allows franchisees to book events on their schedule, ensuring they can maximize profitability while maintaining work-life balance.
“What makes DonutNV particularly attractive as a long-term investment is its proven business model… relatively low labor costs and predictable royalty fees.
The flat-rate royalty system, which starts at $125* per week in year one, ensures that franchisees… can enjoy more control over their profit margins.
IFPG states, with “SWEET profit margins,” DonutNV is packed with everything franchisees need to be successful.”
IFPG brokers are proud to have placed multiple candidates with DonutNV!
According to the IFPG: “DonutNV is packed with everything franchisees need to be successful, including a fully interactive turnkey mobile donut shop, marketing support, technology tools for booking events, and full support on licensing and permitting.”
The DonutNV franchise provides the opportunity to invest $189,580 – $272,900 / Single Unit-Food Truck: $264,880 – $337,700 / Multi-Unit-Vehicle Trailer: $374,130 – $520,300 / Multi-Unit-Food Truck: $524,730 – $647,400.
Mark Schnurman’s The Perfect Franchise Promotes DonutNV
What Do You Think? The DonutNV Franchise Seems Too Good to be True! Is It?
Are you familiar with the DonutNV franchise opportunity? With Alex & Amanda Gingold?
Do you know of any DonutNV franchise failures? (Please tell us when & where they closed)
Are you familiar with Franchise Fastlane? With Jake Hamburger? Jennifer Cain?
Which franchise consultant / broker introduced you to this exciting opportunity?
Please leave a comment below or email us, in confidence, at UnhappyFranchisee[at]Gmail[dot]com.
Franchisors: The franchisor, its employees and agents are invited to submit correction, clarifications, rebuttals or other opinions for immediate consideration.
UnhappyFranchisee.com is not associated with this or other franchise company or seller.
Tags: DonutNV, donutNV franchise opportunity, Franchise Fastlane, Alex Gingold, Amanda Gingold, Scott Gingold, Jake Hamburger, Jennifer Cain, donut franchise, Franchoice, FranServe, IFPG, FBA, Franchise Brokers Association, FBA, The Perfect Franchise, Mark Schnurman, Kris Simonich, Andrea Floyd
Why would anyone buy a franchise for little donuts?
Lil’ Orbits sells the machines, the mix and whatever else you need.
As long as you use their supplies you can use the Lil Orbits name and logo.
You are also free to use any name you want.
They are not a franchise, and charge thus no franchise fee.
They do offer training and assistance.
Their machines are expensive but they offer a reduced cost repair service for as long as you own the machine.
FWIW I don’t work for Lil Obits, do not own one of their machines and I am not even sure if I have ever eaten any of their donuts.
I had never heard of DonutNV so I thought I would checkout the OG of hot, little donuts, Lil’ Orbits.
They seem to be a MUCH better deal.
Good point on getting Lil Orbits donut machines and mix. And then order lemons to make lemonade. Call it DonutGR8, DonutTHX, DonutBTW, DonutXOXO, DonutPLZ, DonutOMG, DonutBTW, DonutIDK, etc…
Franchise brokers are calling the people who bought DonutNV – DimwitPLZ and DimwitUR.
These donuts are delicious but in my area alone a few have opened and gone out of business. Zero failures? Not a chance.
Not all consultants… There are still some of us that do our best to operate with our clients’ best interest in mind.
[Redacted: Google Search Query for “Worst Franchises to Own in 2024”]
Franchises aren’t for everyone. Donuts aren’t for everyone. However, we have been very happy with the start up, branding and marketing support, education and ongoing mentoring from the DonutNV community for our business. We knew it wouldn’t all be easy, but it has turned out to be what was presented to us. It is what you make it and effort in, yields rewards.
Current Industry Rankings
FranServe’s SUPERHERO BRAND 500:
2023 Superhero Brand 500 Award
FranServe’s FRAN-TASTIC 500:
2022 Fran-Tastic 500 Award
2021 Fran-Tastic 500 Award
2020 Fran-Tastic 500 Award
Franchise Dictionary Magazine:
TOP 100 Game Changers for 2023
2024 Women of Wonder Award
2023 Women of Wonder Award
Thank you, The Blacks, for your input and participation.
We think it’s important for prospective DonutNV franchisees to hear the experiences and opinions of actual franchisees – outside of sales testimonials and “Confirmation Day” presentations.
We are pleased that you are happy with the start-up support, mentoring, and branding.
We agree that “Franchises aren’t for everyone. Donuts aren’t for everyone.” The franchisee qualification & selection process is one of a franchisor’s greatest responsibilities & challenges.
It’s imperative that they set the right expectations and don’t oversell, such as saying that a business can be profitable as a “semi-absentee” venture if it can’t be.
Franchisors who leave franchisee qualification & selection to commissioned salespeople with a history of overpromising and/or misrepresentation will find that the limelight can go dark very quickly as it has for many Franchise Fastlane’s past star performers (Premier Martial Arts, Anchored Tiny Homes, the lawsuit-laden Smash My Trash, & others).
When you say “it has turned out to be what was presented to us,” are you saying that your numbers met or exceeded the Item 19 you were given?
Table 1: Adjusted Net Profit Statement for 2023 – One Company Unit
The following table shows certain sales and expense information for the one DonutNV trailer operated by our affiliate in 2023.
Sales Event Revenue $159,639
Travel Fees $8,275
Gratuities $1,895
Gross Sales $169,809
Select Expenses
Food Cost – Supplies $18,031 10.6%
Fuel $2,827 1.7%
Merchant Processing $2,392 1.4%
Total Select Expenses $23,250 13.7%
Adjusted Net Profit $146,559 86.3%
Franchise Fees
Royalty $7,800 4.6%
Brand Fund $2,400 1.4%
Tech Fee $3,000 1.8%
Total Franchise Fees $13,200 7.8%
Adjusted Net Profit after Franchise Fees $133,359 78.5%
Table 2: Events Conducted in 2023 – One Company Unit
The following table shows the number of events conducted by the affiliate-operated trailer
in 2023, and sales per event
Number of Events 88
Average Sales Per Event $1,930
# (%) Above Average 41 (47%)
Median Sales Per Event $1,581
Lowest Sales Event $268
Highest Sales Event $5,280
____________________________________
Do you think these are good numbers to include in the 2025 FDD?
Or should they include ACTUAL sales of franchisee operated trailers restricted to territories of 100,000… and include labor costs?
MS: I apologize if you meant this list of bogus awards as a joke.
I honestly can’t tell if you are being ironic in posting undisclosed pay-for-praise broker advertising deceptively disguised as legitimate awards to create a false sense of safety and unearned credibility.
Either way, thank you for posting this.
Can you please share what Franchise Fastlane pays FranServe, FranChoice, IFPG, FBA, or any other brokers
What are FranServe “consultants'” average commissions for delivering an eager, qualified candidate, award-struck candidate to “Confirmation Day”?
I’ll save you the trouble: $30K for the first unit, $38K for 2, $48K for 3.
Send UF a check like that and we’ll call you Fran-Tastic Fran-erific Fran-tabulous or anything else you want!
Hey: Fun Fact! Guess which other Fran-Tastic award-winning concept is currently being promoted on FranServe’s site?
A: Franchise Fastlane client Anchored Tiny Homes!
Google “Anchored Tiny Homes” franchise. It’s Fran-Tastic!
MS I don’t know if you are part of this broker group or not but thanks for that link.
That search query led me to a blog post from Success Franchise Advisors that indicates they had declined to promote DonutNV because of concerns that their growth was too quick.
https://successfranchiseadvisors.com/the-worst-franchises-to-own-in-2024/
It says:
While I’m not ready to declare DonutNV one of the WORST franchises of either year, Kudos to Success Franchise Advisors for taking heat for being a “consultant” not just a sales puppet.
Unhappyzee… yes I was somewhat poking fun at all the awards they were given by Franserve. I am not positive but I believe brokers are paid around $30k a deal with them.
I figured as such when your link led to a blog post cautioning about the mini-donuts craze.
I am looking into how being Franchise Fastlane’s hottest new franchise works out for franchisors a year or two later… Premier Martial Arts got massacred online, Smash My Trash got hit with millions in civil judgements…
I doubt private equity is gonna be interested in donut trailers. The Gingold’s should be regarding these posts as their wake-up call.
All too often franchisors believe that they if they use franchise brokers and FSOs they reduce their liability and responsibilities. When the opposite is true. Franchisors are responsible for everything a franchise broker says to a prospect and the same for FSOs. And not to mention dumbass franchise brokers who put on their websites saying they are not salespeople, they make no representations for the franchises they sell and are not sales agents of the franchisor. Franchise brokers you are 3rd party sales agents of all the franchisors you pitch and hawk for like it or not.
Franchise brokers and FSOs are sales agents of franchisors. Franchisors are liable for their sales agents. Who knew?
I currently own 3 DonutNV trailers and my husband and I were franchise #8 to join the sweet life. My sales are in line or above the numbers presented to us, and that is due to research prior to purchase, not going into this business underfunded, and having an unmatched hustle. If someone has failed, it is most likely due to one of these topics. Small business is not cookie cutter, there is no guarantee, and food trucking is a beast all on its own. Not everyone is cut out for owning their own business and not everyone is cut out for the food industry. Although there is so much that is taught at DonutNV University, there is also a lot that can not be taught until it’s in the moment. Alex and Amanda started a business that was so successful that they saw the opportunity to franchise their hard work and offer their business model across the country. Have there been learning curves, yes of course, but they started an amazing journey and paved a path for others that I can guarantee any of these negative posters on this thread would dare to dream about. Don’t expect a lot of positive comments on this thread because those of us who are successful are too busy hustling and selling minis to be bothered by negativity or an ambulance chasing reporter who is just looking for his next story. Yes, lil orbits exists, as does dawn mix and others, but try them side by side DonutNV’s donuts and encounter an enthusiastic DonutNV owner who is just as passionate as The Gingolds are about their donut business, and you will undoubtedly walk away smiling. If the intent is to rip apart DonutNV from this site, it won’t work, there are too many of us who are successfully making life sweet with minis and lemonade, backed by fearless leaders. I have been on many validation calls – which I complete with 100% honesty – and welcome any questions should anyone want to reach out to me directly.