Dunn Brothers Coffee®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A DUNN BROTHERS COFFEE® franchise requires a total initial investment of $456K – $799K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $600K[2]. SBA 7(a) loans show a 23.1% charge-off rate across 30 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $456K – $799K
- 78th pct Service Resta…
- Avg gross sales
- $600K
- 14th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 48
- 62nd pct Service Resta…
- SBA default
- 23.1%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
23.1% of SBA loans charged off across 30 loans, above the 16% franchise average.
Franchised units fell from 58 to 44 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $456K – $799K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $600K/year (median $570K).
- Verdict F (Bottom Quintile) with a risk score of 94/100. SBA loan charge-off rate of 23.1% across 30 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -17.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Dunn Bros Franchising, LLC
- Parent company
- Dunn Bros Parent, LLC
- Ultimate parent
- Gala Family, LP
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5412 W. Plano Pkwy., Suite 100, Plano, Texas 75093
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $2.7M
- vs $3.0M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- DBC Gift Card
- Dunn Bros Alternative Channels
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate coffee shop retail locations serving specialty beverages, pastries, and light food items. Day-to-day operations include staffing management, inventory ordering, customer service, equipment maintenance, and local marketing within a protected territory.
- CEO
- Anand Gala
- Headquarters
- TX
- Founded
- 2022
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Architecture Design, Approval and Permit Fees | $5K | $26K | |
| Leasehold Improvements | $188K | $300K | |
| Sewer and Water Access Charge | $0 | $10K | |
| Prepaid Rent, Security Deposit, Utility Deposits, Business Licenses and Attorney Fees | $9K | $16K | |
| Furniture, Fixtures and Equipment | $151K | $293K | |
| Roaster and Associated Leasehold Improvements for Venting | $27K | $27K | |
| Travel Expenses While Training | $500 | $4K | |
| Opening Inventory | $9K | $12K | |
| Grand Opening Expenses | $10K | $10K | |
| Insurance Premiums | $3K | $7K | |
| Additional Funds - 3 Months | $15K | $54K | |
| Total initial investment | $456K | $799K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$84K
14.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $456K – $799K
- Below avg, review vs category
- Liquid capital req'd
- $15K – $54K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $540 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $9K – $12K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $600K
- Per unit, per year
- Median gross sales
- $570K
- Item 19 type
- gross_sales
- Sample size
- 27 units
- vs category median 28
- Range (low → high)
- $309K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $366K→$854K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Dunn Brothers Coffee® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 1
- Last reporting year
- Closed
- 2
- Turnover rate
- 4.2%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- -10.2%
- Net unit change last year
- 3-yr CAGR
- -17.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 4
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Michigan
- Minnesota
- North Dakota
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 30
- Loan volume
- $10.3M
- Median loan
- $261K
- 50th percentile
- Charge-off rate
- 23.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 76.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 6
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Dunn Brothers Coffee®'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 23.1% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DUNN BROTHERS COFFEE presents HIGH RISK due to a contracting unit base, undisclosed profitability metrics, franchisor going concern status, and thin revenue-to-investment ratios that suggest systemic viability challenges.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $60,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 94 / 100 rating
- 01MEDUnit decline of 10.2% year-over-year indicates shrinking franchise system despite mature brand
- 02MEDNet income not disclosed in Item 19 — inability to assess actual profitability or franchisee ROI
- 03HIGHGoing Concern status is FALSE — potential financial instability or viability concerns at franchisor level
- 04MINORAverage revenue of $600k against $455k-$799k investment suggests thin margins with high failure risk
- 05MINORRoyalty escalation clause (5% to 6% for non-compliance) is punitive and indicates potential franchisor cash flow problems
- 06MED48 total units is extremely small system with limited support infrastructure and purchasing power
- 07MED10-year term locks franchisees into declining brand with limited exit flexibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius or description |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 260 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- Qu POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Qu POS System
Item 20 · call current owners
Franchisee Contacts
49 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DUNN BROTHERS COFFEE® · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DUNN BROTHERS COFFEE® franchise?
The total investment to open a DUNN BROTHERS COFFEE® franchise ranges from $456K – $799K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DUNN BROTHERS COFFEE® franchise owners earn?
According to Item 19 of the DUNN BROTHERS COFFEE® FDD, the average gross sales per unit is $600K. The median is $570K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is DUNN BROTHERS COFFEE®'s franchise failure rate?
Based on SBA 7(a) loan data, DUNN BROTHERS COFFEE® has a charge-off rate of 23.1% across 30 loans, meaning 23.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many DUNN BROTHERS COFFEE® franchise locations are there?
As of their most recent FDD filing, DUNN BROTHERS COFFEE® has 48 total units in the United States, including 58 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is DUNN BROTHERS COFFEE® a good franchise to buy?
FranchiseVerdict rates DUNN BROTHERS COFFEE® as a F-grade franchise with a risk score of 94 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.