Shipley Donuts signed what the franchise brand describes as the first nonprofit franchise agreement in its nearly 90-year history. The franchisee, SouthFair Community Development Corporation of South Dallas, will operate under the entity name Community Donut Corporation, with franchise revenue directed toward local economic development programs in one of Dallas’s historically underserved neighborhoods.
Founded in Houston in 1936, Shipley Donuts operates more than 390 locations across 13 states and holds the position of largest fresh, handmade-daily donut and kolache brand in the United States. The brand ranked No. 134 on Entrepreneur’s Franchise 500 for 2026 and No. 1 in its category. The July 8, 2026 announcement describes a franchise model with no direct precedent in the brand’s existing system.
A Nonprofit Takes on a Triple Role: Landlord, Tenant, and Franchisee
SouthFair Community Development Corporation, a South Dallas nonprofit active in the neighborhood for more than three decades, will simultaneously serve as landlord, tenant, and franchisee of the new Shipley Donuts location. The operating entity, Community Donut Corporation, is newly created for this purpose and will be led by Annie Evans, who has directed SouthFair CDC for more than 15 years. The location is planned for 2807 Al Lipscomb Way in South Dallas, as part of the ground-up Malcolm’s Point Retail Project. Opening is targeted for the end of 2026.
“This franchise agreement gives our community a seat at the table and a chance to reinvest in its own future,” says Annie Evans, Chief Executive Director of SouthFair CDC. “We’re building a foundation for long-term economic opportunity that we hope will benefit Dallas residents for generations to come.”
How the Community Donut Corporation Model Is Structured
Under the arrangement as described in the announcement, retail operating revenue generated by the Community Donut Corporation flows back into SouthFair CDC’s broader community programs, which have historically focused on neighborhood revitalization and local economic development in South Dallas. The structure is designed to generate local employment, support area suppliers, and fund ongoing neighborhood initiatives. Flynn Dekker, CEO of Shipley Donuts, describes the deal in terms of the brand’s founding philosophy: “At Shipley, we believe that great donuts have the power to bring people together. This partnership with SouthFair reflects and expands upon our nearly 90-year-old legacy of investing in people and communities.”
An Uncommon Model in Food Service Franchising
Nonprofit franchise agreements remain rare in the food service sector. Community development corporations have operated retail businesses in other categories, but partnerships that embed a CDC as a full franchise licensee, responsible for both the real estate and the brand’s operational standards, represent an unusual intersection of community finance and franchise law. The Shipley Donuts system’s existing footprint is concentrated in Texas and surrounding states, where the brand’s kolache offering, a Czech-style filled pastry with limited national competitors, contributes to regional brand recognition. The South Dallas location would extend the brand’s presence in a Dallas market where it already operates multiple restaurants.
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