Pennsylvania-based Duck Donuts has partnered with local entrepreneurs Juan Carlos Piñero and Jorge Ramos to open three locations in Puerto Rico in as many years, the company announced.
The Puerto Rico stores will
join a chain of about 80 franchise locations of the made-to-order donut shops already
operating across 24 states. The chain got its start in 2006 in the town of Duck,
North Carolina, founded by current CEO Russell A. DiGilio, who was in Puerto
Rico recently to sign the franchise agreements.
By 2011, Duck Donuts had
expanded to four Outer Banks locations and the donut business was so successful
that DiGilio was continuously approached about franchise opportunities by fans
who begged for a Duck Donuts in their community, according to the company’s website.
The first franchise opened in
Williamsburg, Virginia, in 2013, and there are now 78 open franchise locations
“Our mission is to serve a
warm, edible ring of happiness around the globe and our decision to expand to
Puerto Rico allows us to be one step closer to attaining this goal,” said DiGilio
the Central Penn Business Journal.
According to the report, the
first Duck Donuts location in Puerto Rico will be in the San Juan area. Local
franchisee Duck Donuts Puerto Rico LLC, responsible for the brand’s expansion
in Puerto Rico, is based in Cataño, according to its incorporation documents.
Duck Donuts specializes in
warm, made-to-order donuts. Customers can create their own donut combination by
choosing from a variety of coatings, toppings and drizzles, including
traditional favorites such as chocolate icing with sprinkles and more
adventurous creations such as maple icing with bacon.
The family-friendly stores
offer a viewing area where children and adults alike can watch their donuts
being made, according to its website. Duck Donuts also sells coffee, tea, donut
breakfast sandwiches and now offers online ordering in many locations.
To purchase a Duck Donuts franchise
license, the parent company requires a minimum of $150,000 in liquid funds
(cash, savings, mutual funds, stocks, etc.) and a minimum of $500,000 in total
net worth, according to its website.
The initial franchise fee is
$30,000 with discounts for purchasing multi-unit options, the company noted.
The estimated cost of opening a Duck Donuts franchise store will range between
$348,350 – $568,000, depending on the location and size of the space. This
includes the costs of construction, equipment, signage, initial advertising and
the franchise fee, it added.
Duck Donuts has been on an
expansion track in recent months, announcing plans to open outside the United
States in countries including Chile, Mexico,
Canada and the Dominican Republic, according to the story in the Central Penn
There are more than 145
additional contracts in 25 states and two countries underway, the company
In Puerto Rico, Duck Donuts will
compete in a market that includes Krispy Kreme, Master Donuts, Kudough’s Donuts
& Coffee Bar, among others.