The sweet side of NIL: how one donut business helped launch Michigan’s high school NIL era

ST. JOSEPH, Mich. -- Michigan’s new era of name, image and likeness deals for high school athletes did not begin in St. Joseph with a major shoe company or a six-figure contract. It started with something small and sweet. 

Zo’s Mini Donuts, a food truck created by sisters Zoey and Lydia Heyn, became one of the first local businesses in southwest Michigan to sign high school athletes to NIL deals. Zoey first came up with the idea at 15-years-old, and a few summers later, it grew into a six-location business, selling more than 150,000 donuts last year.

After the Michigan High School Athletic Association approved NIL bylaws Jan. 27, both sisters knew this was an opportunity they could not deny. 

“The moment they announced it, we were sitting at a family dinner and we were like, ‘Oh my gosh, we have to do NIL deals for high school students,’” Lydia Heyn said. “Because Zoey is a young entrepreneur. This is a way for other high school kids to be their own high school entrepreneurs.”

The sisters began reaching out to local student-athletes on Instagram. They said the response was immediate.

“Everyone we offered it to wanted to do it,” Zoey said. “They were like, ‘Yes please, this is awesome!’”

On Feb. 8, Zo’s Mini Donuts signed eight high school athletes across southwest Michigan. The deal included a branded photo shoot, free merchandise and a compensated social media post.

“It was a party,” Zoey said. “Almost every athlete brought a family member, and they were so proud of their athlete to be able to be a part of something like this.”

One of those athletes was Lainie Dorow, a flag football and basketball player at St. Joseph High School. Dorow became the first student-athlete at the school to sign an NIL deal. Dorow said she never expected NIL to reach the high school level this quickly. But when the offer came from a local business she already supported, she said the decision was easy.

“I don’t think that it’s just a money grab like a lot of those people might think,” Dorow said. “Me personally, I want to support the brands I’m working with and build them up just as much as they want to do that for me.”

For Dorow, the deal also carried a bigger meaning. She said it gives female athletes more visibility and gives younger girls someone to look up to.

“It’s awesome to be one of the first girls,” Dorow said. “And I hope it keeps expanding and that I can use my platform to be a positive role model to the younger girls experiencing NIL.”

While Michigan is now allowing high school NIL, the MHSAA has put rules in place to keep deals separate from schools and athletic programs. Under MHSAA rules, NIL agreements cannot be connected to a student-athlete’s school. That means athletes cannot use school logos, school uniforms or school events in NIL promotions. Coaches and boosters also cannot be involved.

Geoff Kimmerly, communications director for the MHSAA, said Michigan waited to approve NIL so it could learn from other states before writing its own rules.

“If a student is going out of his or her way to go around our rules, absolutely, eligibility will be questioned,” Kimmerly said. “This is something we are taking very seriously because if this would become something more than an individual opportunity for individual students, it does have the opportunity to affect competitive equity and the things who we hold dear.”

So far, Kimmerly said NIL has not become a major issue in Michigan.

“We don’t have a ton of deals, to be honest with you,” Kimmerly said. “We have 125 deals out of 180,000 students, so again, it’s something that’s barely affecting our student-athlete percentage.”

Kimmerly said only about 20 of those deals are worth more than $1,000. Five months into Michigan’s high school NIL era, the numbers remain small, but the MHSAA knows they could grow.

“We’re hopeful that when we do have situations where we have some high-profile athletes, those can be learning experiences for everyone involved,” Kimmerly said. 

For Zoey and Lydia, the deals are not just about selling donuts. They said their business is built around giving young people opportunities, from the athletes they sign to the employees working behind the counter. Zoey said one employee was able to buy her first car with money earned through the business. Another saved enough to help pay for her first year of college.

“We have been overwhelmed with support, which has been a blessing,” Lydia said. “Just pure support from our community. We see it as young entrepreneurship and clearly, we support young entrepreneurship.”

That may be the early picture of high school NIL in Michigan: not massive contracts or recruiting wars, but local businesses, local athletes and a new lesson in how to build a brand.

As for what comes next, the sisters are thinking big. Their long-term goal is to eventually open a Zo’s Mini Donuts location on Zoey’s college campus after she graduates. And the business goal?

One day, the sisters said, they hope Krispy Kreme is their competition.