How to Finance a Painted Dough Franchise: Donut Shop Startup
By Anthony Cornella
A Painted Dough franchise loan pays for a small, retail food business with a big creative streak: a donut shop built around handcrafted, colorful donuts and specialty coffee and tea drinks. Because the brand is young in franchising and each shop needs a leased storefront, a working kitchen and enough cash to carry the opening months, the way you assemble the money matters as much as the amount.
This article covers published costs and fees, SBA and conventional financing, the brand’s SBA Franchise Directory note and what a lender will want to see. It is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by Painted Dough; the name is used only to describe the business. Figures come from the franchisor’s own materials and can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice.
Painted Dough Franchise Loan at a Glance
According to Painted Dough’s franchise website, reviewed in 2026:
- Initial franchise fee: $30,000
- Royalty: 5% of gross sales
- Marketing fee: 3% of gross sales or $2,000, whichever is greater
- Total investment: starting from $361,800, according to the franchisor
- Training: in person at the company’s headquarters in Chino, California
- Franchisor financing: the company says it does not lend directly
- Net worth and liquidity minimums: not published on the franchise website; confirm them in the disclosure document
- SBA Franchise Directory: listed as Painted Dough (code S8394), with a note about the lease addendum when real estate secures the loan
The website gives a starting figure rather than a full range, so use the Item 7 table in the current Franchise Disclosure Document for the low and high estimates and every line item.
What Is Painted Dough?
Painted Dough opened as a neighborhood donut shop in Chino, California, in 2016. The company’s website credits founders Danny Truong and Kim Tang and describes the concept as handcrafted donuts with bold, creative flavors, classic recipes given modern twists, colorful designs and a welcoming atmosphere.
Drinks are part of the identity: the online menu features Vietnamese-style iced coffee, including ube and sea salt versions, Thai tea and cold brew alongside fancy donuts. Beverages can lift the average ticket and spread sales beyond the early morning, which matters in a lender’s projections.
An emerging system. The company’s own site lists one shop in Chino, names Indio, California as its next location and describes growth to three locations by 2026. That makes Painted Dough an early-stage system, so lenders look harder at the owner’s experience, capital and local market plan. Our article on financing an emerging franchise brand explains what changes in underwriting when the system is new.
Painted Dough Franchise Costs
Initial franchise fee
The initial franchise fee is $30,000, according to the franchisor, and it is usually one of the first uses of funds in a Painted Dough franchise loan request.
Lease, build-out and storefront
Shops operate from retail storefronts, and the franchisor says it helps with site selection, lease negotiation, letters of intent and store development. The largest variable costs are usually the lease deposit, leasehold improvements, kitchen plumbing and electrical work, branded finishes, signage and permits, which swing widely by market.
Kitchen equipment and smallwares
A donut shop needs fryers, proofing equipment, mixers, refrigeration, display cases, coffee equipment, a point-of-sale system and smallwares.
Opening inventory, training and working capital
Expect ingredients, packaging, drink supplies, travel to training, pre-opening payroll, grand opening marketing and cash to carry the shop while sales build.
Total investment
Painted Dough states that the total cost to invest starts from $361,800. Compare the Item 7 table with contractor bids and equipment quotes for your site, and tie your sources and uses statement to those numbers.
Ongoing Fees and How They Affect Your Loan
According to the franchisor, Painted Dough charges a royalty of 5% of gross sales and a marketing fee of 3% of gross sales or $2,000, whichever is greater. Because both fees are tied to gross sales, they come out before rent, payroll, ingredients and loan payments.
The marketing fee has a floor: in slow opening months the $2,000 minimum can exceed 3% of sales, so model it during ramp-up. Lenders deduct these fees before measuring debt service coverage, and other recurring charges appear in Item 6 of the disclosure document.
Franchisor Requirements for New Owners
Painted Dough does not post minimum net worth or liquid capital figures on its franchise website, so confirm expectations with the franchisor. The franchisor describes a seven-step path: an application and phone interview, review of the Franchise Disclosure Document, a Day of Discovery meeting, signing the franchise agreement, site selection and development, training and then opening with ongoing support. Training is hands-on at headquarters in Chino and covers menu preparation, customer service, inventory and the point-of-sale system.
Ways to Own a Painted Dough
Opening a new shop. This is the main route today, financed on projections, your experience and the site. Our page on restaurant start-up financing covers how new food businesses are funded.
Buying an existing franchised shop. As the system grows, resales may appear. A resale gives a lender real sales history to underwrite, and the franchisor must approve the transfer. Our page on franchise acquisition financing explains how purchases of operating units are structured.
Opening more than one shop. Ask whether the franchisor offers multi-unit rights and development schedules.
Financing Options for a Painted Dough Franchise
The franchisor says it does not lend directly but works with outside lenders on conventional and SBA loans; buyers can also arrange their own.
SBA 7(a) loans. An SBA 7(a) loan is often a fit for franchise start-ups because one loan can cover the franchise fee, build-out, equipment, opening inventory and working capital, subject to program rules and lender approval.
SBA 504 loans. If you buy the building your shop occupies, or a larger mixed-use property, SBA 504 financing is designed for owner-occupied real estate and long-lived fixed assets. Most donut shops lease, so 504 will fit only some deals.
Conventional term loans. Borrowers with strong credit, liquidity and restaurant experience may qualify for conventional business loans, which often expect more equity or collateral.
Equipment financing. Fryers, proofers, mixers, refrigeration, display cases and espresso machines can sometimes be financed separately. See our page on restaurant equipment financing and leasing. The primary lender will count that payment when sizing the main loan.
Working capital and lines of credit. A new shop needs cash for pre-opening payroll, ingredients and packaging, and the marketing fee minimum while sales build. Seasonal swings around holidays and catering orders can also strain cash. Our page on restaurant working capital explains the options.
Seller financing on resales. When buying an existing shop, a seller may sometimes carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Painted Dough Franchisees
SBA loans are made by participating lenders and partially guaranteed by the SBA. For franchises, the lender also checks that the franchise agreement leaves the owner in control of the business, and the SBA Franchise Directory streamlines that review. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
The directory listing. Painted Dough appears on the SBA Franchise Directory under code S8394. A listing means the brand’s documents have been reviewed for eligibility; it does not approve any borrower or guarantee any loan.
What the directory note means. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease may not be executed. In plain English, the brand’s lease addendum is meant for shops in leased space. If you own the property and pledge it as collateral for the SBA loan, you should not sign that lease addendum, because there is no third-party lease and the addendum’s terms could conflict with the lender’s interest in the real estate. If you lease, as most owners do, the lender will review the addendum along with the lease.
SBA application tips. Bring the franchise agreement, a lease draft, contractor bids, equipment quotes, a sources and uses statement, financial statements, tax returns and résumés. Our article on how lenders read the FDD shows which disclosure document items tend to draw questions.
How Lenders Evaluate a Painted Dough Deal
Personal credit and financial history. Lenders review each owner’s credit, tax returns and debts; significant owners usually sign personal guarantees.
Net worth and liquidity. With less system data on a young brand, your cash injection and post-closing reserves carry more weight.
Food service and management experience. Experience running a bakery, café or quick-service restaurant, or managing hourly staff, helps. First-time owners can strengthen a request with an experienced general manager.
Business plan and projections. A strong plan explains the morning traffic pattern, beverage sales, weekend and holiday demand, catering or dozen orders, staffing for early bake shifts, ingredient costs and the 5% royalty and marketing fee with its $2,000 minimum.
The disclosure document and franchise agreement. Lenders read the term, renewal, transfer and termination provisions in Item 17 and compare the franchise term with the loan term. They will also note whether Item 19 includes financial performance representations; if it does not, your projections need careful support.
The site and lease. Lenders look at visibility, parking, the lease term and options, and whether the space can support a kitchen.
Kitchen Equipment and Build-Out Considerations
Fryers and proofers drive production capacity, refrigeration protects fillings and dairy, display cases sell the product, and the drink bar adds espresso equipment, grinders, ice machines and blenders.
Utilities often cost more than expected: gas or upgraded electrical service for fryers, hood and fire suppression, grease management and plumbing can turn a simple retail space into a major build-out. Have a contractor walk the space before you sign the lease.
Multi-Unit Growth and Development Agreements
Lenders usually want the first shop to show stable results before funding a second, and they review global cash flow across all of your businesses. Each new shop carries its own build-out, equipment and opening costs. Our article on multi-unit franchise financing covers how lenders handle second and third units.
Real-World Scenarios
A café manager opening a first shop. A buyer with years of café management experience signs a lease on an end-cap in a busy retail center. An SBA 7(a) request bundles the fee, build-out, equipment and working capital.
A couple buying a small building. Two partners find a small freestanding building and plan to open a shop there. Because the property will secure the loan, they and their lender follow the directory note and do not sign the lease addendum, and they look at a 504 structure for the real estate.
A restaurant owner adding a brand. An owner of an existing quick-service restaurant adds a Painted Dough to diversify. The lender reviews the existing business’s cash flow and the new shop’s projections together and finances some kitchen equipment separately.
Common Mistakes to Avoid
- Relying on the starting investment figure instead of the full Item 7 range
- Applying the marketing fee as a flat 3% and ignoring the $2,000 minimum
- Signing a lease before confirming the space can handle fryers, ventilation and utilities
- Signing the lease addendum when the shop’s real estate will secure an SBA loan
- Leaving too little working capital for the ramp-up months
- Comparing loan offers only on rate instead of term, collateral and guarantees
For more, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Painted Dough Franchise
Step 1: Request and review the disclosure document. Read it with a franchise attorney, focusing on Items 5, 6, 7, 17 and 19.
Step 2: Size the project. Build a budget from the Item 7 table, then adjust it for local rents, contractor bids and equipment quotes.
Step 3: Talk with a financing specialist early. Learn which loan structures may fit and how much cash you will need. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 4: Secure a site. Work with the franchisor’s real estate support on a letter of intent and lease that fits your loan timeline.
Step 5: Assemble your documents. Gather tax returns, financial statements, résumés, the lease draft, bids and monthly projections.
Step 6: Apply and close. Coordinate loan approval, lease signing and the franchise agreement.
Painted Dough Franchise Loan FAQs
How much does it cost to open a Painted Dough?
Painted Dough says the total investment starts from $361,800. The full range and the line items behind it are in Item 7 of the current disclosure document, and your actual cost depends on the site and market.
What is the Painted Dough franchise fee?
The initial franchise fee is $30,000, according to the franchisor.
What royalty and marketing fees does Painted Dough charge?
The franchisor lists a royalty of 5% of gross sales and a marketing fee of 3% of gross sales or $2,000, whichever is greater.
How much net worth or liquid capital do I need?
The franchise website does not publish minimums. Ask the franchisor and check the disclosure document; lenders will also expect a cash injection and reserves after closing.
Is a Painted Dough franchise loan eligible for SBA financing?
The brand is listed on the SBA Franchise Directory under code S8394, which can simplify the lender’s review. Approval still depends on you, the project and lender review.
Does Painted Dough offer financing?
The company says it does not lend directly. Item 10 of the disclosure document describes any franchisor financing.
Can I finance the kitchen equipment separately?
Often, yes. Fryers, proofers, refrigeration and espresso equipment may be financed or leased separately.
Can a first-time business owner get a Painted Dough franchise loan?
It is possible, especially with food service or management experience, a solid cash injection and a detailed plan.
Can I buy an existing Painted Dough shop?
As the system grows, resales may appear; the franchisor must approve the buyer, and a lender will review the shop’s records.
What documents do I need to apply?
Expect tax returns, personal financial statements, résumés, the franchise agreement, a lease or letter of intent, bids, equipment quotes and monthly projections.
Final Thoughts
Painted Dough pairs a creative donut and drink concept with published fees and an SBA Franchise Directory listing. Because the system is young, a documented budget, a strong site and ample working capital will carry real weight in your Painted Dough franchise loan request.
US Professional Funding helps buyers finance franchise start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
