Start a Dunn Brothers Coffee Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $540K - $809K

Units as of 2024: 52 14% over 3 years

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.

Company Overview

About Dunn Brothers Coffee

Industry	Food
Related Categories	Coffee, Beverages
Founded	1987
Parent Company	Gala Capital Partners
Leadership	Scott Harvey, President
Corporate Address	201 Third Ave. S. Minneapolis, MN 55401
Social	Facebook, LinkedIn, Instagram, TikTok

Business Overview

Franchising Since	1994 (30 years)
# of employees at HQ	17
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	52 (as of 2024)

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.	$40,000
Initial Investment 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.	$539,600 - $808,960
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.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	10% off franchise fee
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.	5%
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.	3%
Term of Agreement 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.	10 years
Is franchise term renewable?	Yes

Financing Options

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	20 hours
Ongoing Support	Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
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.	No
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.	No
# of employees required to run	10-20
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.	Yes