Three Dog BakeryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Three Dog Bakery franchise requires a total initial investment of $181K – $314K, including a $40K franchise fee and an ongoing 5.5% royalty[2]. Per the 2023 FDD, average unit revenue was $518K[2]. SBA 7(a) loans show a 9.1% charge-off rate across 19 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $181K – $314K
- 26th pct Service Resta…
- Avg gross sales
- $518K
- 10th pct Service Resta…
- Royalty
- 5.5%
- 40th pct Service Resta…
- Units
- 43
- 60th pct Service Resta…
- SBA default
- 9.1%
- 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
Franchised units fell from 41 to 35 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $181K – $314K including a $40K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $518K/year (median $437K).
- Verdict A (Top Quintile) with a risk score of 25/100. SBA loan charge-off rate of 9.1% across 19 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 17.1% CAGR over 3 years with 43 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- THREE DOG BAKERY, LLC
- Parent company
- MV3D, LLC
- CEO title
- President
- Joe Dent
- Incorporated in
- DE
- HQ
- 6131 Deramus Avenue, Kansas City, MO 64120
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $28.9M
- vs $38.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Three Dog Bakery franchisees operate retail bakeries specializing in pet-themed baked goods and treats. Day-to-day operations include baking/preparing products, managing inventory, direct customer service in retail locations, and potentially staffing 3-5+ employees depending on volume.
- CEO
- Joe Dent
- Headquarters
- MO
- Founded
- 2014
- FDD year
- 2023
- States available
- 19
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $116K | $224K |
| Total initial investment | $181K | $314K |
Source: Three Dog Bakery 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$80K
15.5% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $181K – $314K
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Near category avg vs category
- Franchise fee
- $25K – $40K
- Below avg, review vs category
- Royalty
- 5.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $500 |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $518K
- Per unit, per year
- Median gross sales
- $437K
- Item 19 type
- gross_sales
- Sample size
- 36 units
- vs category median 28
- Range (low → high)
- $156K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $288K→$815K
- Bottom 25% → top 25%
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Three Dog Bakery Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +10.8%
- Net unit change last year
- 3-yr CAGR
- +17.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 4
- Franchisor's next-year forecast
- Transfer rate
- 2.3%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $3.2M
- Median loan
- $179K
- 50th percentile
- Charge-off rate
- 9.1%
- 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)
- 90.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Three Dog Bakery'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 12 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Three Dog Bakery presents moderate-to-cautious risk: lack of profitability disclosure, going concern warnings, slow unit growth, and high relative investment make this difficult to validate without Item 19 financials.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 25 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $518K average revenue claim — inability to verify profitability or net income creates transparency gap
- 02MEDModest unit growth of 10.8% YoY with only 43 locations suggests limited brand momentum and potential market saturation concerns
- 03MEDHigh initial investment range ($181K-$314K) relative to disclosed average revenue ($518K) means breakeven timeline and ROI remain unvalidated
- 04HIGHGoing Concern status is False — indicates franchisor reported going concern warnings in recent financial statements, raising operational/financial stability questions
- 05MED5.5% royalty on gross sales (not net) combined with undisclosed net income means actual profitability for franchisees is unknown
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 | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Governing law | Missouri |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 140 hrs
- Training location
- franchisee's premises
- Field support
- 32 hrs/yr
- On-site visits per year
- POS system
- ShopKeep
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ShopKeep
Item 20 · call current owners
Franchisee Contacts
68 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Three Dog Bakery · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Three Dog Bakery franchise?
The total investment to open a Three Dog Bakery franchise ranges from $181K – $314K, 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 Three Dog Bakery franchise owners earn?
According to Item 19 of the Three Dog Bakery FDD, the average gross sales per unit is $518K. The median is $437K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Three Dog Bakery's franchise failure rate?
Based on SBA 7(a) loan data, Three Dog Bakery has a charge-off rate of 9.1% across 19 loans, meaning 9.1% 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 Three Dog Bakery franchise locations are there?
As of their most recent FDD filing, Three Dog Bakery has 43 total units in the United States, including 41 franchised units and 2 company-owned units. 4 new units were opened in the latest reporting year.
Is Three Dog Bakery a good franchise to buy?
FranchiseVerdict rates Three Dog Bakery as a A-grade franchise with a risk score of 25 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
Are you the franchisor?
If you represent Three Dog Bakery, you can request corrections or provide updated information.
Claim this brandOther Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.