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Dunn Brothers Coffee Franchise ProfileCoffee Franchises > Coffee Shops |
What Are the Initial Investment Requirements for a Dunn Brothers Coffee Franchise?
To open a Dunn Brothers Coffee franchise, you should be prepared for an initial investment ranging from $539,600 to $808,960. This includes a franchise fee of $40,000. Additionally, you will need to demonstrate a net worth between $500,000 and $1,000,000. It's also essential to have sufficient cash reserves, as the required cash ranges from the low end of the initial investment to the high end. Understanding these financial commitments is crucial for aspiring franchisees.
What Are the Ongoing Fees Associated with a Dunn Brothers Coffee Franchise?
When operating a Dunn Brothers Coffee franchise, you will encounter ongoing fees that include a royalty fee of 5% on gross sales and a marketing fee of 3%. These fees contribute to the overall operational costs and can impact your profitability. It’s important to factor these percentages into your financial planning to ensure your business remains viable and competitive in the coffee market.
What Is the Average Revenue Potential for a Dunn Brothers Coffee Franchise?
Dunn Brothers Coffee franchises show promising revenue potential, with an average annual revenue per unit reported at $576,073. The median revenue stands at $474,170, while the highest unit generated an impressive $1,025,086. Understanding these figures can help you assess the financial viability of the franchise and set realistic revenue expectations as you plan your business strategy.
How Long Will It Take to Break Even with a Dunn Brothers Coffee Franchise?
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at around 17 months. These timelines are significant for potential franchisees, as they provide insight into the speed at which you can recoup your initial investment and begin generating profit, making it a key consideration in your decision-making process.
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 | 61 | 56 | 52 |
| Net Change YoY | -5 | -4 | |
| Franchised Units | 58 | 53 | 49 |
| Net Change YoY | -5 | -4 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Dunn Brothers Coffee is a specialty coffee franchise that has been serving high-quality, freshly brewed coffee since 1987. With a strong emphasis on community engagement and sustainability, Dunn Brothers Coffee offers a unique café experience that combines artisanal coffee with a welcoming atmosphere. The brand is committed to sourcing ethically produced coffee and creating a local feel in each of its locations, making it a favorite among coffee enthusiasts looking for more than just a quick cup.
Investment Details
Starting a Dunn Brothers Coffee franchise requires an initial investment ranging from $539,600 to $808,960. This includes a franchise fee of $40,000 and ongoing royalty and marketing fees of 5% and 3% of gross sales, respectively. Potential franchisees should also have a net worth between $500,000 and $1,000,000 to qualify, ensuring that they have the financial capacity to support their new business venture.
Financial Performance
Dunn Brothers Coffee units report an average annual revenue of $576,073, with a median revenue of $474,170. Franchisees can expect a range of revenues, with the lowest reported at $333,459 and the highest at $1,025,086. With a breakeven time of approximately 12 months and an investment payback period of 17 months, aspiring franchisees can find a promising financial outlook in this coffee franchise.
Operational Structure
As of 2023, Dunn Brothers Coffee operates a total of 52 units, with 49 being franchised and 3 corporate-owned. The franchise has seen a slight decline in the number of franchised units over the past few years, indicating a need for potential franchisees to carefully assess market conditions and operational support from the corporate team before making a commitment.
Cost Structure
The average cost of goods sold (COGS) for Dunn Brothers Coffee is approximately $178,883, representing 31% of total revenue. With operating expenses averaging $123,446 (21% of revenue), franchisees can expect a gross profit margin of around 69%. This financial structure highlights the potential for healthy profitability, provided that operational efficiencies are maintained.
Brand Values
Dunn Brothers Coffee is dedicated to creating a positive impact in the communities it serves. The brand prioritizes sustainability and ethical sourcing, ensuring that their coffee is not only delicious but also responsibly produced. By fostering a sense of community and emphasizing quality, Dunn Brothers Coffee aims to provide an exceptional experience for both customers and franchisees, making it a compelling choice for those looking to enter the coffee market.
Frequently Asked Questions
The initial investment for a Dunn Brothers Coffee franchise ranges from $539,600 to $808,960, which includes the franchise fee and other startup costs.