Doughnotts Targets Franchise Expansion After Securing Major Funding Package
Artisan doughnut brand Doughnotts is set to accelerate its growth after securing a significant six-figure funding package to support the rollout of a structured franchise model.
The Nottingham-based business, formally known as The Nottingham Doughnut Co Ltd, has received investment from the Midlands Engine Investment Fund II via appointed fund manager Maven Capital Partners.
Funding to Drive Franchise Growth Strategy
The new funding will enable Doughnotts to formalise its franchise offering in partnership with Ashtons Franchise Consulting, as the brand looks to scale beyond its established East Midlands footprint.
In addition to franchise development, the capital will be used to:
- Refurbish and upgrade existing stores
- Invest in new site openings
- Strengthen working capital to support expansion
This move reflects a growing trend among food and beverage brands adopting franchise models to achieve scalable, capital-efficient growth.
From Start-Up to Multi-Site Retail Brand
Founded in 2015, Doughnotts has evolved from a small kitchen start-up into a recognised regional brand, operating multiple stores across Nottingham, Lincoln, Beeston and West Bridgford.
The company has built a strong reputation for its handcrafted doughnuts, made using a 100% vegan dough base, alongside creative seasonal and limited-edition flavours that drive repeat customer demand.
Leadership Commentary
Wade Smith, co-founder and director of Doughnotts, said:
“The funding enables us to formalise our franchise model, invest in our store estate and continue expanding the Doughnotts brand into new locations.
“We’ve built a loyal customer base since 2015, and this support gives us the confidence and capability to take the brand into its next phase of growth.”
Sabrina Mahmood, investment manager at Maven Capital Partners, added:
“Doughnotts has developed a distinctive regional brand underpinned by product quality and strong customer loyalty. We were particularly impressed by the clarity of the growth strategy and the scalability of the franchise model.
“This funding provides the flexibility needed to support sustainable expansion, and we look forward to working closely with the team as they execute their plans.”
Supporting Regional Business Growth
David Tindall, senior investment manager at the British Business Bank, said:
“The Midlands Engine Investment Fund II is designed to support ambitious businesses as they scale. This investment will strengthen Doughnotts’ foundations and enable expansion into new regions, bringing its offering to a wider audience.”
Franchise Model to Unlock National Expansion
With a proven retail concept and strong brand identity, Doughnotts is now positioning itself for franchise-led expansion across the UK, targeting new territories while maintaining product quality and customer experience.
The development of a structured franchise model is expected to play a key role in the company’s long-term growth strategy.
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