Dunn Brothers Coffee

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

Dunn Brothers Coffee roasts and brews specialty coffee, providing a cozy and inviting coffee shop atmosphere with a focus on quality and craftsmanship.

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 began in 1994, facilitating its expansion while adhering to the original vision of quality and community focus.

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
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, Security Deposit, Utility Deposits, Business Licenses and Attorney Fees $8,700 to $16,000
Furniture, Fixtures and Equipment $150,500 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 $455,600 to $798,960

Franchise Disclosure Document

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Competitors

Below are some of

Dunn Brothers Coffee

key competitors in the

Coffee & Tea

sector.

Started franchising
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Home-based

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Passive investment

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FDD
Dunn Brothers Coffee
1994
44
+
-17%
-17%
$40,000
5% - 6%

$456,000

-

$799,000

n.a.

$554,000

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70.0%

n.a.

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n.a.

n.a.

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No
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No
No
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No
2011
5
+
67%
67%
$30,000
6.00%

$88,000

-

$517,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2011
76
+
62%
62%
$45,000
5.00%

$466,000

-

$597,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2017
14
+
17%
17%
$35,000
6.00%

$244,000

-

$490,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
5
+
150%
150%
$30,000
6.00%

$269,000

-

$576,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
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No
Yes
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Yes
2017
18
+
125%
125%
$35,000
6.00%

$1,594,000

-

$3,314,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
2
+
n.a.
n.a.
$50,000
6.00%

$155,000

-

$299,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

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Upgrade
Upgrade

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Total investment

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Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
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Priority support

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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.

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.

Number of units

2025
Franchised units

53

49

44

Company-owned units

3

3

4

Total units

56

52

48

Competitors

Kahala Coffee Traders

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

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