Dunn Brothers Coffee Franchise
Cost, fees, owner earnings, closure rate and litigation for a Dunn Brothers Coffee franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Dunn Brothers Coffee discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 gross sales data for 26 drive-thru shops: average $571,901 (range $229,928–$1,104,217). Excluded 13 shops (1 new, 12 no drive-thru). 46% met/exceeded average.
What a Dunn Brothers Coffee franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $448,600 – $728,400 | Item 7 — franchisor's own low/high estimate |
5% royalty base, 6% if non-compliant. 3% national marketing + 1% local = 4% ad fees (capped 6% total). Multiple ancillary fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Dunn Brothers Coffee system size and owner turnover
| Total outlets | 43 |
| Ceased operations | 0 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 1 |
| Closure rate | 0.0% of outlets |
2025: 5 net closures. 3-year trend: 18 franchised closures. Significant attrition.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Dunn Brothers Coffee worth it? — how it compares to 32 similar franchises
| Ongoing fees | 9% of sales | steeper than 63% of coffee & donuts franchises |
| Startup cost | from $448,600 | pricier than 61% of peers |
| Disclosure honesty | Grade B | more honest than 88% of coffee & donuts franchises |
| Closure rate | 0.0% of outlets | better than most (median 5.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Dunn Brothers Coffee
The franchisor's framing: 2025 gross sales data for 26 drive-thru shops: average $571,901 (range $229,928–$1,104,217… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Dunn Brothers Coffee franchise — frequently asked
- How much does a Dunn Brothers Coffee franchise cost?
- The FDD lists a total initial investment of about $448,600–$728,400, including a $30,000 initial franchise fee.
- How much do Dunn Brothers Coffee franchise owners make?
- 2025 gross sales data for 26 drive-thru shops: average $571,901 (range $229,928–$1,104,217). Excluded 13 shops (1 new, 12 no drive-thru). 46% met/exceeded average. We grade this disclosure B for honesty.
- What are the Dunn Brothers Coffee franchise fees?
- Dunn Brothers Coffee's FDD discloses a $30,000 initial franchise fee, a 5% royalty on gross sales, a 4% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty base, 6% if non-compliant. 3% national marketing + 1% local = 4% ad fees (capped 6% total). Multiple ancillary fees.
- What is the Dunn Brothers Coffee franchise profit margin?
- Dunn Brothers Coffee does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 gross sales data for 26 drive-thru shops: average $571,901 (range $229,928–$1,104,217). Excluded 13 shops (1 new, 12 no drive-thru). 46% met/exceeded average. Recurring fees alone take about 9% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Dunn Brothers Coffee franchise failure rate?
- 2025: 5 net closures. 3-year trend: 18 franchised closures. Significant attrition.
- How many Dunn Brothers Coffee locations are there?
- Dunn Brothers Coffee's FDD reports 43 total outlets, with 0 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Dunn Brothers Coffee have complaints or lawsuits?
- Dunn Brothers Coffee discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Dunn Brothers Coffee franchise worth it?
- It depends on the numbers, not the pitch. Dunn Brothers Coffee scores B on disclosure honesty, carries about 9% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Dunn Brothers Coffee to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Dunn Brothers Coffee or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.