What you bake
Donuts Business for Sale in Indiana: 5 Checks (2026)
A five step check of the seller's numbers, lease, and permits so you do not overpay for someone else's donut shop.
On this page
- What should you ask for before you visit the shop?
- How do you check the seller’s numbers?
- What does the lease and the equipment really cost you?
- How do you verify permits and licenses?
- What mistakes cost buyers the most money?
- How do you value the customer list and recipes?
- How do you move the shop to your own setup?
Searching for a donuts business for sale in Indiana brings up listings that look simple. The hard part is not finding a shop. It is proving the numbers the seller gives you are real.
What to remember
- Ask for bank statements, not a spreadsheet.
- Check the lease term and who pays for repairs.
- Cost the ingredients, labor, and overhead before you offer.
- Do not pay in full until the handover is complete.
What should you ask for before you visit the shop?
Ask the seller for three things before you drive over: two years of bank statements, the current lease, and the equipment list with serial numbers. A serious seller will have them ready. A seller who stalls is telling you something.
Bring a notebook and write down every answer. You will compare shops and you will forget details. Ask the same questions to every seller so you can compare like with like.
Ask why the seller is selling. Ask how long the shop has been open. Ask if the seller will stay for two weeks to train you. The answers tell you if the shop is a going concern or a rescue job.
How do you check the seller’s numbers?
The seller’s price should come from profit, not from the asking price of other shops. Profit is what is left after ingredients, labor, and overhead. Ask the seller to show you that math for one month. Use the same method you would use to calculate what to charge for baked goods.
Get one month of sales
Ask for the daily sales report and the matching bank deposits.
Add the ingredient cost
Use the seller’s supplier invoices for that same month.
Add the labor hours
Write down every hour worked, including the owner’s hours, at a fair wage.
Add the overhead
Rent, power, water, insurance, and any loan payments for that month.
Subtract all three from sales
What is left is the margin. If it is negative, the shop is losing money.
Here is a worked example for one week. Sales are $2,800. The ingredient cost for that week is $700. Labor includes 40 owner hours at $20 per hour and 20 part time hours at $15 per hour. That is a labor cost of $1,100.
Overhead for the week includes rent ($400), utilities ($150), and insurance ($50). Total overhead is $600. Subtract all costs from sales. $2,800 minus $700, minus $1,100, minus $600 leaves a margin of $400.
This margin is before any loan payments or your own salary. It shows the shop can cover its costs. A negative number means the shop is not viable at its current sales or cost level.
What does the lease and the equipment really cost you?
The lease can cost more than the equipment. Ask for the remaining term, the monthly rent, and who pays for repairs. Check if the lease allows you to keep the same use and the same sign.
Equipment has a replacement cost. A used fryer might be cheap to buy and expensive to fix. Ask for maintenance records and get a quote from a repair company before you agree to the price.
Ask for the last 12 months of utility bills. A cheap rent with high power bills is not cheap. Add the bills to your monthly cost.
How do you verify permits and licenses?
A donut shop needs a retail food establishment permit from the Indiana Department of Health. It also needs local city or county permits. Ask the seller for copies of all current permits.
Call the state and the city before you sign. Ask what the current permit covers and what you need to do to put it in your name. A permit transfer can take weeks.
Check if the shop has any violations on record. The same guide notes you can search for this. An open violation can stop a transfer and cost you money to fix.
What mistakes cost buyers the most money?
The biggest mistake is paying for goodwill without a customer list. Goodwill is what you pay for the repeat customers. If the seller will not give you the list, you are paying for a name.
Another mistake is skipping the permit check. Call the state and the city before you sign. Ask what the current permit covers and what you need to do to put it in your name.
Recipes are part of the sale. Ask for the written recipes and the supplier list. If the seller keeps the recipes, you are buying a shop you cannot run. Put the recipes in the contract.
How do you value the customer list and recipes?
A customer list has value if you can contact the people on it. Ask for the list before you offer. See if it has emails, phone numbers, or addresses. A list of 500 regulars is worth more than a list of 50.
Test the list by asking the seller to send one email announcing the sale. Watch how many customers reply. This shows the list is active and the customers care.
Recipes should be written down with exact weights and instructions. Ask to see the recipe book. If the seller says the recipes are in their head, you cannot buy that. You need them in writing to train staff.
How do you move the shop to your own setup?
You can run the shop on your own setup from day one. Move the customer list to your own email or phone. Set up your own way to take orders and get paid. Read home baking business website for a simple start, and use a business plan for cakes and online sales to map the first month.
Ask the seller to introduce you to the main suppliers. A supplier who knows the shop can keep you from running out of flour on week one. Get the account numbers in your name before the handover date.
For more help with the craft side of baking, read the craft baking business guides. They cover pricing, naming, and promoting your shop without paid ads.
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Common questions
Do I need a lawyer to buy a donut shop in Indiana?
Many buyers use a lawyer for the contract and the lease. Ask for a fixed fee quote before you hire one. A short review can catch a lease term or a permit problem that would cost you more later. You do not have to use a lawyer, but the contract is long.
How do I know the seller's sales numbers are real?
Ask for bank statements and tax returns for the last two years, not a spreadsheet. Match the deposits to the sales reports. If the seller will not share them, walk away. You cannot value a shop on stories or on a single good month.
What if the shop has no website?
You can build one. Brevl is $20 a month with no cut of your sales, and it works on your phone. You can take card payments through your own Stripe or Square account. Start with a 14 day free trial and move your customer list over.
Should I buy the equipment or lease it?
Compare the cost of replacing the equipment with the price the seller adds for it. Ask for maintenance records. Get a repair quote before you agree to the price. A cheap fryer can become an expensive repair.
How long does it take to transfer a donut shop?
The timeline depends on the lease, the permits, and the seller's cooperation. Ask for a written schedule. Do not pay in full until the equipment list, the recipes, and the customer list are in your hands. Keep a holdback until the handover is complete.
Sources
General information, not legal or tax advice. Talk to an Indiana attorney and a tax professional before you buy a business.