Houston-born Shipley Do-Nuts closed the first half of 2026 with four franchise agreements covering nine new shop locations across Texas, Ohio, North Carolina, and Oklahoma. Among them: the brand’s first-ever franchise partnership with a nonprofit organization, based in South Dallas. New market openings from El Paso to Northern Virginia signal a deliberate push well beyond the chain’s traditional Sunbelt base.
Founded in 1936 in Houston, Shipley Do-Nuts has built its expansion on a consistent record: the franchise brand has now posted positive same-store sales growth for more than three consecutive years. Through the first half of 2026, it opened locations in three new markets and signed agreements that bring its development pipeline further into the Midwest and Mid-Atlantic. The Q2 announcements were accompanied by a new catering platform, adding a group-order channel to the brand’s revenue mix.
Nine New Locations and a First Nonprofit Franchise Partnership
In the second quarter, Shipley Do-Nuts signed four franchise agreements to develop nine shops. The agreements cover locations in
- South Dallas (nonprofit partner),
- Cincinnati,
- Ohio (three shops with Kolache Co. LLC),
- Raleigh, North Carolina (two shops with Plexus Raleigh LLC), and
- Stillwater, Oklahoma (three shops with Dough Pokes LLC).
The South Dallas agreement is notable as the brand’s first with a nonprofit organization. In the quick-service sector, nonprofit franchise models are uncommon; they typically involve a community organization operating a unit, with revenues directed toward the organization’s stated mission.
Good to know
Nonprofit franchise partnerships represent an emerging model in US franchising. Under these arrangements, the franchisor grants a license to a nonprofit entity, which operates the location and may direct a portion of revenues toward community programs. Terms vary by agreement and are subject to IRS regulations governing nonprofit commercial activity.
New Markets Stretch From West Texas to Northern Virginia
The first half of 2026 brought three market-entry openings for Shipley: El Paso, Texas in March; Bossier City, Louisiana in May; and Vienna, Virginia in June. The Vienna location, situated in the Washington, D.C. metro area, represents the brand’s first entry into the Mid-Atlantic region.
For a chain built around Southern comfort food staples including donuts and kolaches, the expansion into Northern Virginia marks a meaningful geographic step. Multi-unit operators have been the primary vehicle for these new market agreements, with each of the Q2 signings involving partners committing to two or more locations.
An Online Catering Platform Rounds Out H1 Developments
In Q2 2026, Shipley Do-Nuts launched a dedicated online catering platform, giving customers a direct channel for group and event orders. The platform covers custom donut and kolache bundles of varying sizes, coffee pairings, and a selection of exclusive mini kolaches not available through standard in-store ordering.
Catering has become an increasingly common revenue layer for quick-service franchises, providing incremental volume from business accounts, schools, and event organizers alongside walk-in and drive-through traffic. For franchisees, catering orders can represent a higher average ticket and smoother demand during off-peak hours.
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