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Dunn Brothers Coffee Franchise ProfileCoffee Franchises > Coffee Shops |
How Much Does It Cost to Open a Dunn Brothers Coffee Franchise?
Starting a Dunn Brothers Coffee franchise requires a total initial investment ranging from $396,000 to $798,960. This includes an initial franchise fee of $40,000. Prospective franchisees must meet specific financial requirements, including a minimum net worth of $500,000 and at least $100,000 in liquid cash. Beyond the initial setup, owners are responsible for ongoing costs, such as a 5% royalty fee and a 3% marketing fee based on gross sales.
What is the Financial Performance and Growth of Dunn Brothers Coffee?
According to recent data, the franchise network has maintained a steady presence with 43 franchised units and 1 corporate location as of 2023. The brand reports a median annual revenue per unit of $500,000, while the highest performing units have reached $619,486. For those looking at long-term financial planning, the estimated breakeven time for a new location is approximately 15 months, with a projected investment payback period of 108 months.
Why Should You Consider a Dunn Brothers Coffee Franchise?
Dunn Brothers Coffee offers a unique opportunity for entrepreneurs passionate about coffee and community. The brand is known for its high-quality beans and distinct roasting process, providing a competitive edge in the specialty coffee market. With a stable footprint of over 40 locations, the franchise provides a proven business model and a support system designed to help new owners navigate the complexities of the coffee industry. If you are an outgoing individual who values quality and customer service, this could be the right path for you.
Is a Dunn Brothers Coffee Franchise the Right Move for You?
Deciding to join the Dunn Brothers Coffee family involves careful consideration of your local market and financial readiness. While the brand has shown consistency in its unit count over the last three years, potential franchisees should perform due diligence by researching local competition and speaking with current owners. If you have the required capital and a commitment to maintaining the brand's standards, owning a Dunn Brothers Coffee shop allows you to build a local destination for coffee lovers while leveraging a recognized regional brand.
Dunn Brothers Coffee Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Dunn Brothers Coffee Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 45 | 44 | 44 |
| Net Change YoY | N/A | -1 | 0 |
| Franchised Units | 44 | 43 | 43 |
| Net Change YoY | N/A | -1 | 0 |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | N/A | 0 | 0 |
Investment Requirements
To open a Dunn Brothers Coffee franchise, the total initial investment ranges from a low of $396,000 to a high of $798,960. Prospective franchisees must meet specific financial qualifications, including a minimum liquid cash requirement of $100,000 and a total net worth of at least $500,000. These figures cover the essential startup costs and working capital needed to launch a new location.
Fees and Royalties
Franchisees are required to pay an initial franchise fee of $40,000 to join the system. Ongoing operations involve a royalty fee of 5% of gross sales for new units. Additionally, there is a 3% marketing fee allocated toward brand development and promotional efforts to support the franchise network.
Unit Performance and Revenue
The franchise system shows a median annual revenue per unit of $500,000. While the data indicates a high performance mark of $619,486, the average annual revenue per unit is recorded at $100,000. These figures provide a snapshot of the earning potential across the brand's various locations.
Financial Outlook and Payback
Based on performance data, the estimated time for a Dunn Brothers Coffee unit to reach breakeven is approximately 15 months. The investment payback period, which represents the time required to recoup the initial capital outlay, is projected at 108 months.
Franchise System Growth
Dunn Brothers Coffee maintains a stable presence in the market with a total of 44 units as of 2023. The system is predominantly franchised, consisting of 43 franchised locations and 1 corporate-owned unit. This distribution has remained consistent over recent years, reflecting a steady and established footprint.
Operational Stability
The brand has demonstrated consistent unit counts from 2021 through 2023, maintaining 43 franchised units and 1 corporate location for the past two years. This stability suggests a focused management approach and a committed base of franchise partners operating within the specialty coffee sector.
Frequently Asked Questions
The total investment range for a Dunn Brothers Coffee location is between $396,000 and $798,960. This estimate covers essential startup costs, including the initial franchise fee, equipment, and leasehold improvements.