About Dunn Brothers Coffee Franchise
Dunn Brothers Coffee is a specialty coffee shop franchise distinguished by its use of on site micro roasting to produce daily fresh roasted coffee at the peak of aromatic freshness.
Beyond premium coffee, locations offer drive through service and dine in, take out, and delivery options featuring fresh bakery items, breakfast and lunch selections, and smoothies.
The franchise fee is $40,000 for the first location and $35,000 for subsequent locations, and the company has been franchising since 2022 under Dunn Bros Parent, LLC.
Dunn Brothers Coffee Franchise Cost & Fees
Minimum Investment
$502K
Average Investment
$620K
Maximum Investment
$739K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% National Marketing Fund + 1% local marketing | National brand fund |
| Total Investment Range | $501,620 – $739,232 | Includes build-out, inventory, working capital |
The investment range of $502K–$739K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (3% National Marketing Fund + 1% local marketing) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Launch Fee | $10,000 | $10,000 |
| Architecture Design, Approval and Permit Fees | $5,000 | $26,000 |
| Leasehold Improvements | $157,500 | $275,500 |
| Sewer and Water Access | $0 | $10,000 |
| Prepaid Rent, Deposits, Licenses, Attorney Fees | $5,000 | $16,000 |
| Furniture, Fixtures and Equipment | $220,220 | $251,532 |
| Roaster and Venting Improvements | $27,100 | $27,100 |
| Travel Expenses While Training | $500 | $4,400 |
| Opening Inventory | $9,000 | $12,000 |
| Grand Opening Expenses | $10,000 | $10,000 |
| Insurance Premiums | $2,800 | $6,700 |
| Additional Funds (3 months) | $14,500 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current franchise fee |
| Renewal Fee | 25% of then-current franchise fee |
| Technology Fee | $300-$540/month depending on POS terminals |
| Audit Fee | ~$5,000 plus late fees |
| Non-Compliance Charge | Royalty increases to 7% until cured |
| Management Fee | 10% of Gross Sales if franchisor manages Shop |
| Franchise Conference Fee | $100 per meeting |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10-15 days operational training plus new shop opening support |
| Classroom Training | 35 |
| On-the-Job Training | 48 plus 134 hours new shop opening |
| Training Location | Roseville, Minnesota and franchisee's shop |
| Additional Training | $500/day per trainer for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Designated territory |
| Exclusive Territory | No |
| Territory Size | At least one city block in urban areas |
| Description | Not exclusive. Franchisor reserves rights to operate at Captive Market Locations within territory and sell through alternative channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two consecutive 5-year terms |
| Renewal Fee | 25% of then-current franchise fee |
| Renewal Conditions | 6-12 months notice; good standing; meet standards; pay fee; sign release. |
| Transfer Fee | 50% of then-current franchise fee |
| Transfer Conditions | Franchisor approval; transferee must qualify, complete training; right of first refusal. |
| Termination for Cause | 30-day cure most defaults; 10 days for payment; immediate for abandonment, insolvency, fraud. |
| Non-Compete Period | 2 years |
| Non-Compete Details | 2 years within 5-mile radius of Shop or any Shop in existence. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Managing Owner or Designated Manager must supervise; Designated Manager must complete training. |
| Required Suppliers | Must purchase all Operating Assets from approved/designated suppliers. ~75-90% of initial and 75-85% of ongoing from restricted purchases. |
| Supply Restrictions | May not purchase from unapproved suppliers without written approval. |
| Franchisor Revenue from Suppliers | Predecessor derived $340,800 from product sales to Shops (5.9% of revenues). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Dunn Brothers Coffee Franchise Earnings — Item 19
Average Revenue
$619K
Median Revenue
$609K
Revenue Range
$280K – $952K
Sample Size
19 units
Past financial performance does not guarantee future results. Individual results will vary.
Dunn Brothers Coffee Litigation & Risk Flags
Clean Litigation RecordDunn Brothers Coffee has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dunn Brothers Coffee System Growth
Total Units
61
Franchised
58
Company-Owned
3
Dunn Brothers Coffee currently operates 58 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 8 | 67 |
| 2020 | 1 | 9 | 59 |
| 2021 | 2 | 3 | 58 |
Transfers: 6 | Closures: 9
State Registrations
Registered in 8 states: IA, MN, MO, ND, SD, TN, TX, WI
Dunn Brothers Coffee Franchise — FAQ
The total investment to open a Dunn Brothers Coffee franchise ranges from $501,620 to $739,232, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dunn Brothers Coffee charges a royalty fee of 5% of Gross Sales of gross sales, plus a 3% National Marketing Fund + 1% local marketing contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dunn Brothers Coffee Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Dunn Brothers Coffee to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Dunn Brothers Coffee franchise owners report average revenue of $619K and median revenue of $609K. This is based on a sample of 19 units. Past performance does not guarantee future results.
Dunn Brothers Coffee has been franchising since 2022. The FDD shows an investment range of $501,620-$739,232, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $501,620 to $739,232 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Dunn Brothers Coffee and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dunn Brothers Coffee or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com