Dunn Brothers
Dunn Brothers Coffee offers franchised shops selling daily-roasted coffee and fresh bakery items. Known for high-quality coffee and baked goods, it operates in the specialty coffee shop industry.
About Dunn Brothers
Dunn Brothers Coffee is a franchise company of coffeehouses founded in St. Paul, Minnesota, in December 1987 by brothers Ed and Dan Dunn. As of May 2026, Dunn Brothers Coffee has 46 locations in Iowa, Minnesota, Missouri, North Dakota, South Dakota, and Wisconsin.
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Dunn Brothers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to enter into an area development agreement for the right to develop two or three Dunn Brothers Coffee shops ranges from $40,000 to $60,000. This amount covers the development fee and does not include additional costs such as premises build-out [p.19] and other operational expenses [p.81].
What is the initial franchise fee?
The initial franchise fee is $40,000 [p.11]. This fee is paid in a lump sum and is not refundable upon signing the Franchise Agreement.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the franchisee's gross sales on a weekly basis [p.75]. Advertising fees, including marketing fees, amount to up to 3% of franchisee gross sales per year [p.137]. These fees are recognized when food items are delivered or carried out by customers and are generally due and collected within seven days of the month-end [p.137].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the duration of the initial franchise agreement or the renewal process.
Can I sell or transfer my franchise, and what does that require?
According to [p.5], a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on certain criteria.
On what grounds can the franchisor terminate the agreement?
The franchisor has the right to terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.5]. Additionally, the franchisor maintains the right to terminate the Fund at any time after all amounts in the Fund have been expended for marketing and promotional purposes or refunded to franchisees on a pro rata basis [p.80].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires franchisees and their equity owners to meet all of the franchisor's then current managerial, financial, and shop standards and requirements for new and renewing shops [p.65]. However, this excerpt does not specify exact net worth or liquid capital requirements. This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands that the company controls [p.34, p.33]. The franchisor reserves the right to operate Shops or grant franchises to third parties within your territory [p.106].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that lasts approximately 10 to 15 days, which can be conducted at their corporate support center or a designated location. This training is mandatory for Required Trainees before opening the shop and must be successfully completed to the franchisor's satisfaction [p.31, p.74]. The franchisor may also offer additional training on an as-needed basis throughout the year. While there are no fees for initial training provided by the franchisor, they can charge for replacement or additional training [p.74]. Cassie German is responsible for coordinating these training activities [p.33].
How many franchised outlets are there, and how many have closed or been terminated?
As of the end of calendar year 2024, there were 44 franchised Shops in operation. This number does not include any that may have closed or been terminated, as the provided excerpt does not specify the number of closed or terminated outlets [p.48].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing it. However, beyond this, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.49]. This isn't specified in the excerpts for other forms of financial performance information sharing.
What am I restricted to selling, and where must I buy supplies?
You are generally restricted to selling products and services as per the franchisor's system standards [p.3]. As for supplies, you may be required to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which could potentially be more expensive than other options [p.3].