2026 FDD Issued May 8, 2026, amended Aug 31, 2026 Minnesota Commerce (CARDS)
Dunn Brothers Coffee Franchise Cost (2026)
A Dunn Brothers Coffee franchise costs an estimated $448,600 – $728,400 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $30,000 initial franchise fee (Item 5) and covers this format: Shop (Franchise Agreement). Item 6 lists royalty fee: 5% of Gross Sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $449K – $728KItem 7 source and qualifications
- Franchise fee
- $30KItem 5 source and terms
- Royalty
- 5% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 3% of Gross SalesItem 6 conditions and fee bases apply
What stands out about Dunn Brothers Coffee
The franchised count has fallen every year. Item 20 shows 1 new shop in 2025 against 3 exits, after a run of non-renewals and closures in earlier years, leaving 39 franchised shops, most of them in Minnesota. The projected-openings table lists no signed agreements waiting to open.
Item 19 describes only drive-thru shops. The $571,901 average covers franchised shops with a drive-thru that were open all year and leaves out a large group without one, because the FDD says they operate differently from the format now offered. Results are split by quartile, and the bottom quartile averaged far below the top.
Roasting adds its own line. Item 7 includes a roaster and venting work for shops that roast coffee on site, which a non-roasting shop avoids, and the grand opening payment goes to the franchisor when the lease is signed rather than at opening. Item 6 caps required marketing, combining the fund contribution of 3% of Gross Sales, local spending and any co-op, at a set share of gross sales.
Leaving early carries a large bill. If the agreement ends through your breach or your own termination without cause, Item 6 charges lost-revenue damages equal to the present value of royalties over a multi-year measurement period, using the highest weekly royalty you paid. The term runs 10 years from the day the shop opens and can be extended for shorter successive terms.
What are the initial franchise fees and financial requirements for Dunn Brothers Coffee?
Item 5 lists an initial franchise fee of $30,000 for Dunn Brothers Coffee. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 11-12): $30,000, paid in a lump sum at signing and not refundable. You also pay the franchisor $10,000 toward grand opening expenses when you sign the lease. A Development Agreement costs $15,000 for each committed shop after the first ($30,000 for the standard 3-shop commitment), credited at $15,000 against each later shop's fee.
Source: Dunn Brothers Coffee 2026 FDD, Item 5, PDF p. 11.
This record lists no minimum net worth or liquid-capital requirement for Dunn Brothers Coffee, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Dunn Brothers Coffee franchise? (Item 7)
Source: Dunn Brothers Coffee 2026 FDD, Item 7, PDF p. 17.
Item 7 of Dunn Brothers Coffee’s 2026 Franchise Disclosure Document estimates the total cost to open one shop (franchise agreement) at $448,600 – $728,400. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Architecture Design, Approval and Permit Fees | $5,000 | $26,000 |
| Construction, Remodeling, Leasehold Improvements | $187,500 | $300,200 |
| Sewer and Water Access Charge | $0 | $10,000 |
| Rent, Security Deposit, Utility Deposits, Business Licenses and Attorney Fees | $8,700 | $16,000 |
| Furniture, Fixtures and Equipment | $150,500 | $225,000 |
| Computer System (including point-of-sale system) | $3,000 | $7,000 |
| Roaster and Associated Leasehold Improvements for Venting | $27,100 | $27,100 |
| Travel Expenses While Training | $500 | $4,400 |
| Opening Inventory | $9,000 | $12,000 |
| Grand Opening Expenses | $10,000 | $10,000 |
| Insurance Premiums | $2,800 | $6,700 |
| Additional Funds - 3 Months | $14,500 | $54,000 |
| Total | $448,600 | $728,400 |
Item 7 (PDF pages 17-19) prints $448,600 to $728,400 for one shop; its 13 lines add to that total. Construction and furniture, fixtures and equipment are the largest lines; the estimate assumes an end-cap of about 1,000 to 1,900 square feet plus a drive-thru, with build-out of about $125 to $158 per square foot. A non-roasting shop skips the $27,100 roaster line. The franchisor covers up to $2,000 of a coffee origin tour taken within 24 months. A Development Agreement prints $478,600 to $758,400, adding the $30,000 development fee to the first shop's estimate. Item 6 notes that some fees have been negotiated with certain franchisees.
What ongoing royalties and fees does Dunn Brothers Coffee charge? (Item 6)
Source: Dunn Brothers Coffee 2026 FDD, Item 6, PDF p. 12.
Item 6 of Dunn Brothers Coffee’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 5% of Gross Sales | Every period | 5% of Gross Sales, paid weekly; may rise to 6% while you are out of compliance. (Item 6, PDF p. 12) |
| Temporary Royalty Fee | Varies | When it applies | $1,000 for each week the shop is temporarily closed without consent. (Item 6, PDF p. 13) |
| National Marketing Fund Contribution | 3% of Gross Sales | Every period | 3% of Gross Sales, paid with the royalty. Required marketing (fund, local spending and any co-op) cannot exceed 6% of Gross Sales. (Item 6, PDF p. 13) |
| Local Marketing Expenditure | 1% of Gross Sales | Every period | 1% of monthly Gross Sales spent on approved local marketing; any shortfall is paid into the fund. Subject to the 6% cap. (Item 6, PDF p. 13) |
| Local Advertising Cooperative | Varies | When it applies | Not currently charged; any future amount is subject to the marketing cap. (Item 6, PDF p. 13) |
| Successor Franchise Fee | $10,000 | When it applies | $10,000, or $15,000 if the successor documents are not signed and paid before the term expires. (Item 6, PDF p. 13) |
| Transfer Fee (Franchise Agreement) | $20,000 | When it applies | $20,000 for a transfer of the shop or of ownership interests. (Item 6, PDF p. 14) |
| Transfer Fee (Development Agreement) | $5,000 | When it applies | $5,000 for a transfer of development rights. (Item 6, PDF p. 14) |
| Additional/Replacement Training Fee | Varies | When it applies | $500 per day per trainer plus expenses, for replacement owners or managers or extra training. (Item 6, PDF p. 14) |
| Technology Fee | Varies | When it applies | Not currently charged; may be set at up to $1,000 per month plus actual technology costs. (Item 6, PDF p. 15) |
| Reimbursement of Vendor Payments | Varies | When it applies | Actual costs the franchisor pays vendors for you, plus an administrative fee of up to 10%. (Item 6, PDF p. 15) |
| Audit and Recordkeeping Costs | Varies | When it applies | Estimated at $5,000 plus late fees, if you miss reports or understate fees by more than 2%. (Item 6, PDF p. 15) |
| Management Fee | Varies | When it applies | 10% of Gross Sales plus costs if the franchisor takes over management of the shop. (Item 6, PDF p. 15) |
| Interest Expenses | Varies | When it applies | 18% a year or the legal maximum on past-due amounts. (Item 6, PDF p. 15) |
| Late Fee | $100 | When it applies | $100 per occurrence. (Item 6, PDF p. 15) |
| Insurance | Varies | When it applies | Reimbursement of the franchisor's costs if it obtains insurance you failed to keep. (Item 6, PDF p. 15) |
| Indemnification | Varies | When it applies | Costs of claims related to your shop's operation or development. (Item 6, PDF p. 15) |
| Alternative Supplier Testing Fee | Varies | When it applies | Testing costs plus a $500 administrative fee per request. (Item 6, PDF p. 16) |
| Franchise Conference Fee | $100 | When it applies | Currently $100 per meeting, charged even if you do not attend. (Item 6, PDF p. 16) |
| Lost Revenue Damages | Varies | When it applies | If the agreement ends for your breach or you end it without cause: the present value of royalties for the lesser of 156 weeks or the rest of the term, based on your highest weekly royalty in the prior 156 weeks (or system averages for a newer shop). (Item 6, PDF p. 16) |
| Costs and Attorneys' Fees | Varies | When it applies | Actual costs if you do not comply and the franchisor prevails. (Item 6, PDF p. 16) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Dunn Brothers Coffee startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Dunn Brothers Coffee franchised outlet history
Source: Dunn Brothers Coffee 2026 FDD, Item 20, PDF p. 46.
Item 20 Table 3 reports 39 franchised outlets at the end of 2025. The company-owned table reports a further 4 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 50 | 0 | 4 | 46 | — |
| 2024 | 46 | 1 | 6 | 41 | — |
| 2025 | 41 | 1 | 3 | 39 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
1 units changed owners in 2025.
Item 20 Table 3 (PDF page 46) adds up in every year. Table 1 (PDF page 45) prints different franchised start-of-year counts (53, 49 and 44) that do not follow from its own year-end counts. All tables exclude 3 licensed locations on a college campus, in a stadium and in a convention center. Company-owned shops are owned by affiliates (Table 4). Table 5 lists no signed agreements awaiting opening and 2 projected franchised openings.
How much do Dunn Brothers Coffee franchise owners make? (Item 19)
Source: Dunn Brothers Coffee 2026 FDD, Item 19, PDF p. 44.
Item 19 of the 2026 FDD reports average Gross Sales, franchised drive-thru Shops of $571,901 (Calendar year 2025, 26 franchised Shops with a drive-thru that operated all of 2025; 12 (46%) met or exceeded the average). Dunn Brothers Coffee’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees come out of sales before an owner is paid, so these figures cannot show what an owner earns.
Read the source-review hold before using this figure.
See every Dunn Brothers Coffee Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Dunn Brothers Coffee’s Item 19 figures and sample limits.
How long is the Dunn Brothers Coffee franchise agreement term?
Source: Dunn Brothers Coffee 2026 FDD, Item 17, PDF p. 36.
The standard Dunn Brothers Coffee franchise agreement runs 10 years, with renewal terms of 5 years.
Item 17 (PDF page 36): the term ends the day before the 10th anniversary of the shop's opening; if you are in substantial compliance you may extend it for 2 consecutive 5-year terms. A successor franchise costs $10,000.
How long does it take to open a Dunn Brothers Coffee franchise? (Item 11)
Source: Dunn Brothers Coffee 2026 FDD, Item 11, PDF p. 28.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement or paying for the franchise (the shop must open within 120 days of signing the lease or 12 months of signing, whichever is earlier) to opening: 9 to 12 months.
Franchises with a similar investment range
These published records are selected by proximity to Dunn Brothers Coffee’s $448,600 low-end Item 7 investment, starting with Coffee, Juice & Beverage. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Papa Murphy's $450K – $693K Restaurants & Food
- Pure Barre $455K – $736K Source review pending Provisional publication Fitness
- Penn Station East Coast Subs $441K – $820K Restaurants & Food
- beem Light Sauna $436K – $761K Health & Wellness
- Jersey Mike's $436K – $1.16M Restaurants & Food
- Nothing Bundt Cakes $475K – $994K Restaurants & Food
Compare other coffee, juice & beverage franchises
Sources
Dunn Bros Franchising, LLC Franchise Disclosure Document, issued May 8, 2026, as amended August 31, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 11
- Item 6: cited PDF p. 12
- Item 7: cited PDF p. 17
- Item 19: cited PDF p. 43
- Item 20: cited PDF p. 46
- Agreement term (Item 17): cited PDF p. 36
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Document & verification changelog
- November 3, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- November 3, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued May 8, 2026).
- November 3, 2026: Rechecked against the May 8, 2026 Minnesota FDD as amended August 31, 2026: Items 1, 5, 6, 7, 11, 17, 19 and 20. Item 6 now lists all 21 rows (the draft had 4), including the required local marketing spend. Moved the Development Agreement total into notes, replaced founding dates the FDD does not state with the predecessor's 2001 start, added the opening time and rewrote the analysis. The Item 20 Table 1 conflict remains and is disclosed.
- November 2, 2026: Provisional publication approved per owner directive: Owner directed on November 2, 2026 that every remaining batch 6 brand go live, including brands whose FDDs print conflicting figures. Each record was rechecked against its FDD on November 3, 2026; the unresolved source conflicts remain disclosed and the record is not marked verified.
- August 31, 2026: Amendment date recorded for the source FDD.