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FRANCHISE RESALES

Buy a Randy’s Donuts Franchise

Randy’s Donuts is an American quick-service donut brand founded in 1952 in Inglewood, California, best known for the 32.5-foot rooftop donut that has made it a Los Angeles landmark and a fixture in films, television and music videos. The menu centres on fresh, handmade raised, cake and specialty donuts, served alongside coffee and other beverages.

The Kelegian family acquired the brand in 2015, bringing food and entertainment industry experience and modernising operations while preserving the heritage and recipes built over seven decades. Under that ownership, Randy’s has moved from a single famous shop into a franchised system expanding across the US and internationally.

Franchising runs on a hub-and-spoke model: a central production hub bakes and supplies a network of smaller spoke outlets, which can take the form of kiosks, in-line shops or drive-thru and walk-up locations. The brand targets experienced multi-unit operators, typically structuring development around five-store commitments rather than single sites.

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Why buy a Randy’s Donuts Franchise?

Buying a Randy’s Donut franchise means stepping into one of the most recognisable names in the donut category, a brand with built-in consumer awareness that newer concepts spend years trying to build. That recognition, paired with a fresh, handmade product, gives owners a head start on local foot traffic in a category that has proved resilient through changing economic conditions.

The hub-and-spoke structure is built for scale: a single production hub supplies several smaller spoke outlets, helping owners control quality and costs as they grow a multi-store footprint. The franchisor emphasises transparent supply pricing through an approved vendor network with currently no corporate mark-ups, and points to additional revenue from catering and events beyond walk-in sales.

Randy’s Donuts Franchise Costs & Information

Based on 2024 data reported in the 2025 FDD

  • Brand Profile

    • Year Founded

      1952

    • Franchising Since

      2019

    • New Startup Cost

      $240,500 – $439,500

    • Avg. Resale Price

      Contact us for details

  • Franchise Fees

    • Initial franchise Fee

      $35,000

      for new territories

    • Transfer Fee

      $5,000

      $2,500 if among existing owners/family/controlled entity

    • Royalty Fee

      5%

      of weekly Gross Sales

    • Marketing Fee

      Up to 4%

      of Gross Sales

  • Unit Performance

    • Total Units *

      23

    • New Units Opened *

      6

    • Units Transferred *

      0

    • Avg. Unit revenue *

      $963,790

    * Based on 2024 data reported in the 2025 FDD

Randy’s Donuts – Additional  Information

  1. Training & Support

    Incoming owners receive initial training on Randy's systems and operations, with the FDD outlining 27-43 hours of classroom training and 125.5-155 hours of on-the-job training rooted in the brand's Inglewood operations. Franchisees work from a confidential operations manual and gain access to proprietary recipes and preparation techniques, alongside ongoing training, marketing support and an approved vendor network supplying goods with currently no corporate mark-ups. Onboarding includes a Discovery Day. Resale buyers should confirm what transfer training and system access Randy's provides to a new owner and existing staff at handover.

  2. Ideal Owner

    Randy's is structured for experienced multi-unit operators rather than first-time single-store owners. The model suits investors who can commit to developing several locations and who are comfortable overseeing a production hub and its satellite outlets, managing staff and holding consistent quality across sites. Backgrounds in quick-service, foodservice or multi-location retail are valuable, as is an appetite for hands-on leadership, hospitality and local community engagement. This is an active, growth-oriented commitment, better suited to operators who will drive expansion than to those seeking a passive single-site purchase.

  3. Recognition & Awards

    Randy's Donuts ranked #152 on Entrepreneur's 2025 Franchise 500, and in 2024 placed #36 among the publication's Top Global Franchises and #3 among its New & Emerging Brands. Its 32.5-foot Inglewood rooftop donut is a recognised Los Angeles landmark and a long-running fixture in films, television and music videos, giving the brand cultural reach far beyond its store count. For resale buyers, brand-level recognition should be weighed alongside the specific territory's local reviews, repeat custom and community visibility.

  4. Industry / Market

    The US donut store market is worth more than $8.9 billion a year (Statista), supported by the more than 200 million Americans who eat donuts and by steady demand for breakfast and indulgent treats. IBISWorld projects continued growth over the coming years as specialty and premium donuts widen the customer base. It is a largely cash-and-convenience category that tends to hold up well across economic cycles, though performance is highly local: footfall, daypart mix and nearby competition shape a given store's results, making location quality a central due-diligence point for resale buyers.

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