Dunn Brothers Coffee Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

53
+
-10%
-10%
Investment required

?

$536,000 - $809,000
Revenue (AUV)

?

$586,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$40,000
Royalty fees

?

5.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

53
+
-10%
-10%
Investment required

?

$536,000 - $809,000
Franchise fee

?

$40,000
Royalty fees

?

5.00%
+
4.00%
Revenue (AUV)

?

$586,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Dunn Brothers Coffee: A Journey from 1987 to Today

In 1987, Ed and Dan Dunn founded Dunn Brothers Coffee, bringing their roastery expertise from Portland, Oregon, to the Twin Cities. Their mission was clear: roast in small batches, serve the freshest coffee, and create a welcoming community around their coffee shops. Headquartered in the Twin Cities, Minnesota, this location remains integral to the company's identity and operations.

From the start, Dunn Brothers Coffee set itself apart by roasting coffee in-store, guaranteeing exceptional freshness—a practice that continues to distinguish it from other coffee shops. The franchise model likely began sometime after the company's founding in 1987, facilitating its expansion while adhering to the original vision of quality and community focus.

This franchising approach has enabled Dunn Brothers Coffee to grow beyond its initial location, with each shop independently owned by local community members. This not only promotes local entrepreneurship but also ensures that each coffee shop reflects the unique character of its surrounding environment.

Dunn Brothers Coffee's dedication to quality and community is further highlighted by its involvement in local initiatives and partnerships, demonstrating a commitment to giving back to the communities that have supported the brand since its inception.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Launch Fee $10,000
Architecture Design, Approval and Permit Fees $5,000 to $26,000
Leasehold Improvements $187,500 to $300,200
Sewer and Water Access Charge $0 to $10,000
Prepaid Rent, Deposit, Business Licenses and Attorney Fees $5,000 to $16,000
Furniture, Fixtures and Equipment $224,500 to $292,560
Roaster and Associated Leasehold Improvements for Venting $27,100
Travel Expenses While Training $500 to $4,400
Opening Inventory $9,000 to $12,000
Grand Opening Expenses $10,000
Insurance Premiums $2,800 to $6,700
Additional Funds - 3 Months $14,500 to $54,000
Total Estimated Initial Investment $535,900 to $808,960

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

53

+
-10%
-10%
No growth
New

$40,000

$536,000

-

$809,000

n.a.

$586,000

Pro

76.0%

Pro

n.a.

Pro

Food & Beverage

Training 

Initial Training Program:
Before the shop opens, the franchisee (or its Managing Owner) and the Designated Manager must attend and successfully complete the franchisor's comprehensive training program. This training is conducted at locations specified by the franchisor and must meet the franchisor's standards. Note that all expenses for attending this program are the responsibility of the franchisee.

Mandatory Completion:
Regular management of the shop must be performed by individuals who have successfully completed the franchisor's training program. In exceptional cases, with the franchisor's approval, a person who hasn't completed the training may manage the shop if they already manage other shops as of the agreement's Effective Date. However, the franchisor may require these individuals to complete the training program eventually.

Additional Training:
The franchisor may mandate additional training at the franchisee's expense if it finds any staff member inadequately trained. This could involve training from third parties on subjects such as computer operations or accounting, which the franchisee must attend at their own cost.

Meetings and Conferences:
The franchisee or its Managing Owner and the Designated Manager must attend all meetings and conferences organized by the franchisor for shop owners and employees. Attendance and any associated tuition fees are at the franchisee's expense.

Training Program Details:
The initial training program typically spans 10 to 15 days, providing operational training at the franchisor's corporate support center or another designated location. The franchisor may adjust the duration, content, and structure of this program as needed and offers it periodically throughout the year.

Territory Protection

The franchisor provides designated territories to franchisees, with the size and scope based on various factors such as location, population density, market demographics, and economic conditions. Within these territories, franchisees are granted the right to operate their shop without direct competition from the franchisor or new franchised shops in the same area, provided they are not in default under the Franchise Agreement.

However, this territorial protection does not cover captive market locations within the territory, including airports, malls, or college campuses, where the franchisor retains the right to operate or permit others to operate shops.

Additionally, the franchisor reserves the right to operate and authorize others to operate different types of coffee shops or businesses offering similar products and services under different trademarks, both within and outside the franchisee's designated territory.

Therefore, while franchisees benefit from a certain level of territorial protection, it does not entirely prevent competition from the franchisor through different brands or in specific types of locations within their territory.

Number of units

2021

2022

2023
Franchised units

59

58

53

Company-owned units

4

3

3

Total units

63

61

56

Competitors

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Investment required
$155,000
-
$299,000
Franchisees
2
+
n.a.
n.a.

Happy Lemon

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$298,000
-
$587,000
Franchisees
106
+
16%
16%

Teapioca Lounge

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$268,000
-
$427,000
Franchisees
33
+
65%
65%

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Franchisees
34
+
0%
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