Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$396K - $590K
- Units as of 2020
68 17.1% over 3 years
Here’s what you need to know if you’re interested in opening a Dunn Brothers Coffee franchise.
After experiencing the art of coffee roasting earlier in their lives, brothers Ed and Dan Dunn moved to St. Paul, Minnesota to start their coffee shop. The Dunn brothers began with a mission to roast coffee in small batches, serve the freshest brew possible, provide a warming coffee experience, and put the community at the core of their business.
Their dream came true in 1987 when the Dunn brothers opened Dunn Brothers Coffee, where they have implemented their mission every day in each Dunn Brothers Coffee Shop. Today, there are many Dunn Brothers Coffee shops located throughout the United States. Dunn Brothers Coffee is always looking to expand, potentially making it a solid option for an entrepreneur.
Why You May Want to Start a Dunn Brothers Coffee Franchise
An ideal Dunn Brothers Coffee franchisee is hardworking, motivated, and customer service-oriented. Running a Dunn Brothers Coffee franchise can be fun and rewarding due to its unique and proven business model.
All Dunn Brothers Coffee franchises are expected to use single-origin coffee beans that are roasted fresh daily to show customers how their delicious cup of coffee came to be. If you decide to open a Dunn Brothers Coffee franchise, you will learn how to roast coffee and take part in learning about and meeting the farmers in the countries where the beans are sourced.
Alongside fresh, quality coffee, Dunn Brothers Coffee shops provide in-house baked pastries, fresh salads, and made-to-order signature sandwiches.
What Might Make a Dunn Brothers Coffee a Good Choice?
Franchisees may also have the opportunity to get to know members of their community, as every Dunn Brothers Coffee franchise reflects the community in which it operates. The community is typically showcased in local artwork displayed on the walls. The shop could even become a venue for hosting community events, and partnerships with local businesses can help bring a sense of community and togetherness.
As a Dunn Brothers Coffee franchisee, you will have access to a support system with decades of experience and expertise in running a coffee shop. You'll receive help in creating a comprehensive business plan as well as operations, leasing, construction, marketing, and franchising to make sure you are confident in operating your own Dunn Brothers Coffee franchise.
How To Open a Dunn Brothers Coffee Franchise
To be part of the Dunn Brothers Coffee team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Dunn Brothers Coffee has relationships with third-party lenders familiar with the company and can provide guidance and targeted information on how best to finance your location. These financial lenders may help qualified franchisees cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll.
A typical franchise agreement runs for ten years. At the conclusion of those ten years, franchisees may be allowed to renew their agreement for a sum if they meet the Dunn Brothers Coffee franchise requirements.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Dunn Brothers Coffee franchising team questions.
About Dunn Brothers Coffee
- Franchising Since
- 1994 (28 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 68 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Dunn Brothers Coffee franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $396,000 - $590,393
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Dunn Brothers Coffee has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 218 hours
- Classroom Training
- 55 hours
- Additional Training
- As needed
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionFranchisee Intranet Platform
- Marketing Support
Ad TemplatesSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Dunn Brothers Coffee landed on this year’s Franchise 500 Ranking versus previous years.
Are you eager to see what else is out there? Browse more franchises that are similar to Dunn Brothers Coffee.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
Start a business with the potential to help others achieve long-term financial and retirement goals.
What started as a parking lot pop-up expanded to 67 locations in less than five years. Here's how Dave's Hot Chicken became one of the fastest-growing food chains in the country.
How does your personality compare? Do you like following rules or making the rules?
There's endless opportunity in kid-friendly startups.
Make sure the franchise you buy, and their marketing system, are worthy of your time and investment.