Frequently Asked Questions
1. How much money will be needed to start a Paradise Donut Shop?
2. Is finding employee's a problem for donut shops?
3. How much money can I make in the Donut Business?
4. Will Paradise product be more cost effective than other products I can buy?
5. How do I know the best location to place my shop in town?
6. How do I create a floor plan?
7. Does Paradise charge for the delivery of supplies?
8. When do I take delivery of my equipment?
9. Do I purchase all needed equipment from Paradise?
10. Are the Paradise representatives qualified to help or train me?
11. What and how much training does Paradise Donuts provide?
12. What is it that makes the Paradise Donut company a better choice?
13. What is the protected territory that Paradise offers?
14. Does Paradise provide signage?
15. What equipment if any will you need to place in your store not supplied by Paradise?
16. Why is the Paradise name so important when starting my donut shop?
17. How much do you need to spend on advertising?
18. Does paradise offer financing?
19. How do I get started on opening a Paradise Donut Store?
20. Can I ever sell my Paradise Donut shop if I decide to?
1. Q. How much money will be needed to start a Paradise Donut Shop?
A. On average a Paradise shop will cost approximately $25,000 to $45,000 to open. It is one of the best
business choices for an individual or couple who have saved around $30,000 to start a business or
have enough home equity for an additional mortgage. The cost to open a store can be greatly affected
by the amount of remodeling of the desired location that has been chosen to place a donut shop.
2. Q. Is finding employee's a problem for donut shops?
A. It is the largest obstacle for almost all business owners. However, Paradise Store owners have found
that when they spend a sufficient amount of time properly training their employees they have increased
their longevity of employment. We have also found with proper incentives and direction, it is easier to
create a dedicated and loyal employee. The most important thing is for the owner to set the best
example.
3. Q. How much money can I make in the Donut Business?
A. This, of course, is one of the most common questions we hear. The most given answer is that it
depends on your dedication to always serving quality product and giving quality service.
Paradise stores in towns of 6,000 or more have had the best results, however in smaller towns that
have a large community to draw from or have high traffic counts they have been equally successful.
In the donut business, success is usually in direct correlation to time spent and effort given.
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4. Q. Will Paradise product be more cost effective than other products I can buy?
A. In any industry there will always be someone less expensive or someone that will offer their product
for a higher premium. The price of almost all products is based upon the cost of ingredients that are
involved in the creating of that product. Paradise as a company will not sell an inferior or lower quality
product to try to compete with a lower price of inferior products.
We realize quality ingredients equal quality products and long after the sale the customer will be less
concerned with a few cents saved and more about the quality of products that was provided. Paradise
flour is designed to provide a higher yield than most of our competitors to produce a great profit margin
for our shop owners.
5. Q. How do I know the best location to place my shop in town?
A. Paradise sales representatives have all previously been shop owners. They bring a lot of knowledge
with them when they first come to look at the location that you have chosen. They will assist you in
determining the success of the location.
6. Q. How do I create a floor plan?
A. Once the building is approved your Paradise representative will assist you in taking the measurements
and setting the layout for your building. Paradise will create a floor plan for you at no cost. The plan
will be created with efficiency including your plumbing, carpentry, and electrical needs in mind.
However, we always suggest the owner be advised of the local building codes before following the
plans given to them.
7. Q. Does Paradise charge for the delivery of supplies?
A. No, all Paradise products are delivered free of charge, however on some occasions when the order has
been under the agreed upon amount consistently, to offset freight charges a nominal fee of 10 % has
been added, this is the exception, not the rule. In most cases there is a 20 % savings over many of our
competitors.
8. Q. When do I take delivery of my equipment?
A. When it has been determined that your building is ready for the installation of equipment your
Paradise representative will assist in making arrangements with you for the delivery of equipment to
your store.
9. Q. Do I purchase all needed equipment from Paradise?
A. Paradise Donuts spends a great deal of time in finding equipment for future stores. In most cases
Paradise Donuts will have the equipment needed, if not we will help you find it.
10. Q. Are the Paradise representatives qualified to help or train me?
A. All of the representatives of the company have either been successful owners of donut shops or have
been trained to be productive in assisting you. They speak from experience to answer all of your
questions.
11. Q. What and how much training does Paradise Donuts provide?
A. The training at your shop will begin after your equipment is installed and you have received all
licenses and permits to open your Paradise shop by state and local officials. Your representative will
provide 2-3 days of training for you and your staff.
12. Q. What is it that makes the Paradise Donut company a better choice for you
over another company?
A. As a company with almost 40 years of experience we have created a name in the industry synonymous
with quality. We are determined to give you everything we can to make you successful, because as a
licensee your success is important to our success.
13. Q. What is the protected territory that Paradise offers?
A. Your protected territory is a guaranty that there will be no other Paradise licensees located within 3
miles of your shop location. On rare occasions an existing shop owner has been able to place a shop
within the 3 mile radius. This must first be approved by Paradise Donuts Inc. and the nearest shop to
your proposed location. A Paradise Shop owner is part of a family and as family we work together for
the greater good, not our own agendas.
14. Q. Does Paradise provide signage?
A. No, however since Paradise Donuts is a registered and copyrighted trademark you will need to submit
the graphics of your signage for approval prior to ordering.
As an authorized Paradise Shop owner you may use the name "Paradise Donuts" on all advertising,
printed material or signage that has been approved.
15. Q. What equipment if any will you need to place in your store not supplied by
Paradise?
A. Paradise Donuts does not sell items such as cash registers, counters and shelving refrigerators, office
supplies etc... This is the responsibility of the store owner but your Paradise representative will help
make a list based upon your needs.
16. Q. Why is the Paradise name so important when starting my donut shop?
A. Brands comfort and assure customers by providing reliable, well known quality products and services.
When your customers see a familiar name such as Paradise Donuts it sends a clear message that their
expectations will be met. They will feel confident in the consistency of their experience.
As a Paradise shop owner, you will have the opportunity to receive the benefits that are earned
through the consistency of our business practices in servicing our customers every day.
17 Q. How much do you need to spend on advertising?
A. Building recognition of your store and establishing yourself in the community is very important. For
this purpose we suggest 4% during your growth period initially and around 2 % to maintain. The
advertising is not required, however over the years we have consistently seen the stores that are the top
in sales are there because they have a well budgeted advertising plan and execute it every month.
18. Q. Does paradise offer financing?
A. No, But we will assist you in obtaining the numbers you will need to arrange financing. In some
instances we will help you in locating possible loan institutions. You may also want to consider leasing
your equipment through an internet commercial equipment leasing company.
19. Q. How do I get started on opening a Paradise Donuts?
A. fill out the information request form that is provided on the website and a representative will send you
the information packet or call you and discuss the possibilities with you.
20. Q. Can I ever sell my Paradise Donut shop if I decide to?
A. Yes. This is your business; the license agreement is not automatically transferred but is reissued upon
the approval of the purchasers by the Paradise Donut Corporation.
