Dunkin' Donuts Israel () was an Israeli franchise of the chain. Dunkin' Donuts Israel opened their first location within Israel in 1996 in Tel Aviv. Their main flagship store was located in Rabin Square, with their factory in Lod. Upon opening their first location Dunkin' was a tremendous hit. When the original location opened it broke Dunkin's own sales records by selling 3 million doughnuts in the first eight months. The chain's manager was quoted saying "Israelis do not stop eating doughnuts, They buy such quantities, quantities that we would never have believed they would buy. They buy boxes of 12, eat them here, and then buy more boxes to take home." In 2001, when Dunkin' Donuts Israel decided to close, the company had accumulated a large amount of debt. When the Second Intifada broke out, Israeli tourism slowed, and Dunkin' decided to close. Approximately $2 million was invested in Dunkin' Donuts Israel when it failed. At the peak, Dunkin' Donuts had 9 branches in Israel, of their original goal of 15, including 3 in Jerusalem.