Dunn Bros Coffee
The total investment to open a Dunn Bros Coffee franchise ranges from $45,500 to $385,900. The initial franchise fee is $27,760.
What is the Dunn Bros Coffee franchise?
Dunn Bros Coffee is a franchise brand from Minneapolis, MN, with a presence in the limited service restaurant category and the broader coffee shop sector. The concept serves customers who value freshly roasted coffee, quality beverages, and a welcoming cafe setting. Its approach centers on the craft of coffee preparation, including the selection of premium beans and in house roasting. That process supports a distinct aroma and flavor profile for customers who pay close attention to coffee origins and preparation. Coffee consumption has moved beyond a simple need for caffeine, with many customers seeking artisanal methods and differences among beans from various regions. Dunn Bros Coffee addresses that demand by combining convenience with a more involved coffee experience suited to daily routines, casual meetings, and social visits. Its cafes are intended to function as a comfortable third place between home and work, which can encourage community activity and repeat visits. The brand's headquarters in Minneapolis reinforces its connection to a city known for independent businesses, culinary activity, and interest in high quality food and beverages. Across its units, the concept aims to provide a consistent experience for customers who want more than a quick transaction. Continued interest in specialty coffee supports the relevance of brands that concentrate on product quality and the customer experience.
Coffee shops form a significant part of the limited service restaurant category. The global coffee market is valued in the multi billion dollar range, and specialty coffee has supported substantial expansion as consumers show greater interest in premium, ethically sourced, and carefully prepared drinks. Customers continue to seek convenience through drive thru service and efficient operating models, while also looking for distinctive, artisanal, and customizable beverages. Coffee shops serve several purposes as community hubs where people work, socialize, or relax, making the atmosphere and level of service important parts of the offer. Dunn Bros Coffee operates in this setting while adapting to changing tastes and maintaining an emphasis on quality and consistency. Limited service restaurants depend on accessibility and efficient service, and coffee shops fit that model through relatively low average check sizes and frequent customer visits. Adding light food such as pastries, sandwiches, and other quick bites can create additional revenue and attract customers during different meal occasions. Competition in coffee is intense, so a recognizable identity, consistent products, and effective operating practices can help a brand attract and retain customers seeking a higher quality coffee experience.
Opening a Dunn Bros Coffee franchise requires an initial franchise fee of $27,760 and a total investment ranging from $45,500 to $385,900. The initial franchise fee provides the rights to operate under the Dunn Bros Coffee name, use proprietary systems, receive initial training, and access continuing support. This payment is a standard part of a franchise agreement and represents the upfront cost of joining an established business model and using the franchisor's accumulated experience and brand identity. The total investment range allows for different operating formats. The lower end may correspond to a smaller kiosk or express location, while the higher end may reflect a larger traditional cafe with a more extensive build out and customer area. Costs within the total investment can include leasehold improvements and construction work required to configure a site to brand specifications. Equipment may include espresso machines, coffee grinders, brewing systems, refrigeration units, and point of sale systems. The investment can also include opening inventory such as coffee beans, milk, syrups, cups, and food items, along with signage, furniture, fixtures, and computer hardware. Working capital supports early operating needs such as employee wages, utilities, insurance, initial marketing, and other startup expenses. The lower investment level may provide an entry point for entrepreneurs seeking different site choices and operating formats. The upper range reflects the greater commitment that can come with a larger build out, a prime location, a wider menu, and a more expansive customer experience.
The Dunn Bros Coffee operating model is intended to give franchisees a defined system for running a limited service restaurant. Initial training generally covers the major parts of the business, including coffee bean selection, proprietary roasting techniques, brewing methods for different coffee beverages, and preparation of supplemental food items. Franchisees and their initial management teams also receive instruction on inventory control, supply chain logistics, quality standards, customer service, employee hiring, and employee training. The Minneapolis, MN headquarters serves as a central location for developing and sharing operating standards and support resources. Continuing support is described as a central part of the franchise system. It can include field visits from franchise business consultants, updated operating manuals, and help with local marketing intended to support customer engagement and sales. Supply chain assistance helps franchisees obtain quality ingredients and proprietary products at competitive prices while supporting consistency across all 23 units. Site selection assistance may use demographic information and traffic analysis to identify locations with visibility and customer access appropriate for a limited service restaurant. The franchisor may also provide direction on technology, including current point of sale systems, customer loyalty programs, and digital marketing platforms. These tools are intended to support efficient operations and the customer experience. The organized support system can reduce some of the challenges associated with starting an independent business, allowing owners to concentrate on daily operations and community relationships while using an established brand and operating framework.
For Dunn Bros Coffee, results can be affected by location, operating efficiency, local market conditions, and management quality. Customer traffic, average transaction value, and repeat business influence revenue. Service speed, waste control, and other operating practices affect expenses and the resulting bottom line. Brand marketing and local store marketing can influence customer acquisition and retention. The Loan Activity Score provided by PeerSense is 22 and offers an independent data point for the investment review. The score is generated through PeerSense's proprietary evaluation methodology and should be considered alongside the other parts of the opportunity. When included, those representations are based on historical results from existing units and can provide a reference for building financial projections. A buyer should conduct due diligence, review the local market, and consult financial advisors when developing a financial model for a Dunn Bros Coffee location. The analysis should account for the variables that affect a limited service restaurant, including sales, labor, occupancy, product costs, customer traffic, and management performance.
Dunn Bros Coffee has 23 total units, indicating an expansion approach focused on building a foundation within a competitive coffee market. This unit count can reflect attention to refining the operating model and maintaining consistency before pursuing faster and broader growth. A measured approach gives a limited service restaurant brand time to develop support systems, training procedures, and supply chain practices suited to a coffee focused business. It also places attention on steady expansion and protection of brand standards. Potential points of distinction for Dunn Bros Coffee include a coffee roasting approach that may use in house or small batch roasting to support freshness and a recognizable flavor profile. Proprietary blends and specialty drink recipes can add menu items that are specific to the brand. Personal service and a welcoming experience can encourage customer loyalty in a category where connection with the customer matters. The cafe atmosphere may attract people seeking a comfortable and relaxed place to spend time. Community involvement, local partnerships, and sustainable sourcing practices may also appeal to consumers who value social responsibility. Dunn Bros Coffee continues to use its established presence and evolving operating strategies to remain relevant to customers and prospective franchisees. Its limited service restaurant format is intended to support continued, quality focused expansion.
A suitable Dunn Bros Coffee franchisee may be an individual or a group of entrepreneurs with the business and operating skills needed in the limited service restaurant sector. Business judgment is important, including knowledge of financial management, marketing, and employee relations. A genuine interest in high quality coffee and the cafe experience can support close operational attention and adherence to brand standards. Restaurant management or retail experience is not always required, but it can help with inventory control, customer service, and staff supervision. Leadership and communication skills are useful for building and motivating a team, maintaining a positive workplace, and developing relationships in the local community. Franchisees must also be willing to follow established systems and operating procedures so that the brand remains consistent across all 23 Dunn Bros Coffee franchise units. From a financial standpoint, a candidate should have the liquid capital and net worth needed to meet the investment range of $45,500 to $385,900. That financial position supports readiness for the demands of ownership. Territory planning is another consideration. A franchisee may seek a site with strong foot traffic, residential or commercial density, and clear visibility. Territory selection requires attention to demographics, competitors, accessibility, and the factors that can support customer flow and market penetration for a Dunn Bros Coffee location.
Dunn Bros Coffee operates in the limited service restaurant segment and the established coffee market, with 23 units and a growth plan focused on quality and customer experience. The initial franchise fee is $27,760, while the total investment ranges from $45,500 to $385,900. The range can accommodate different investment capacities and operating formats, from urban sites to community focused suburban locations. The Loan Activity Score of 22, provided by PeerSense, adds an independent data point to the investment review. The brand's model centers on coffee craft, in house roasting, consistent operations, and a cafe setting designed for regular visits. Franchise support includes training, operating guidance, supply chain assistance, site selection support, and continuing resources. Consumer demand for specialty coffee supports the category, while the investment still requires careful review of local competition, costs, traffic, staffing, and management needs. A prospective owner should study the franchise materials, evaluate the territory, and build financial projections before deciding whether the Dunn Bros Coffee model fits the available capital and operating goals.
Loan Activity Score
22/100
SBA Default Rate
21.7%
Active Lenders
17
According to its Franchise Disclosure Document or public business records, Dunn Bros Coffee has 25 locations, all owned by franchisees. Public SBA loan records show 17 lenders made 46 loans to franchisees of Dunn Bros Coffee. PeerSense calculates Dunn Bros Coffee's score as 22 out of 100, using public SBA loan performance and recent lending activity.
25 locations
$45,500 to $385,900
$27,760
25
25 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Dunn Bros Coffee
46
Total SBA loans
$255K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Dunn Bros Coffee
Loan Activity Score Breakdown
Established (25 to 99 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
21.7%
vs 10.3% peer avg
SBA Loans
46
Total Volume
$11.7M
Active Lenders
17
2 selective
States
7
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Dunn Bros Coffee based on SBA lending data
SBA Default Rate
21.7%
11.4% above peer avg
SBA Loan Volume
46 loans
Across 17 lenders
Lender Diversity
17 lenders
Avg 2.7 loans per lender
Investment Tier
Mid range investment
$45,500 to $385,900 total
Dunn Bros Coffee: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2005
10 approvals. The best year on record for Dunn Bros Coffee.
Top SBA State
Minnesota
32 SBA financed Dunn Bros Coffee locations, the densest operator footprint.
Average Loan Size
$255K
Median $229K. Use as a sizing anchor when modeling your own Dunn Bros Coffee unit.
Lender Concentration
60.9%
Concentrated
Share of Dunn Bros Coffee approvals captured by the top 3 SBA lenders.
Dunn Bros Coffee's SBA lending pipeline peaked in 2005 (10 approvals). Operator density is highest in Minnesota with 32 SBA financed locations. Average funded ticket sits at $255K, with the median at $229K. Lender mix is concentrated: the top three SBA lenders account for 60.9% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$471
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Dunn Bros Coffee, unit breakdown
Explore Funding for Dunn Bros Coffee
Our business financing consultants help connect you with the right lending partners. Referral fee paid at closing.
Or get an instant analysis
Scan Your Deal InstantlyPage Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman