The Dutch Bros coffee Franchise: An Overview
Dutch Bros coffee is an all-American coffee shop chain. Founded in 1992, Dutch Bros has over 400 franchises located in 8 states across the nation. With its commitment to offering quality drinks and exceptional customer service, Dutch Bros has become the largest privately held drive-through coffee chain in the country.
How Much Does a Dutch Bros Coffee Franchise Cost?
The cost of opening and operating a Dutch Bros coffee franchise varies greatly depending on the size and location of the shop. The total investment cost will likely range from $170,000 to $280,000, including the cost of leasing or purchasing the real estate, construction and remodeling, franchise fees, and working capital. The company also requires an initial franchise fee of $30,000 when you sign the franchise agreement.
In addition to the franchise fees, you will be required to pay the company an ongoing royalty fee of 5% of your monthly gross sales. You may also be required to pay an advertising fee equal to 2% of your monthly gross sales. These fees are used to help cover the company’s marketing and advertising costs.
What You Need To Know Before Franchising
Before becoming a Dutch Bros franchisee, it is important to know that the company requires you to have a minimum of $150,000 in liquid capital, a net worth of at least $350,000, and experience in the restaurant industry or franchising.
The company also requires that all franchisees are either US citizens or permanent residents, and have a good credit record. The franchise agreement requires that franchisees run the business according to Dutch Bros’ operational guidelines and follow all local and state regulations.
Benefits of Franchising With Dutch Bros
Franchising with Dutch Bros could be a great opportunity for entrepreneurs that are passionate about coffee and customer service. The company offers its franchisees a wide range of benefits including:
- World-class training and support: All Dutch Bros franchisees get access to extensive training and support to help them start and run their business.
- Proven business plan: Dutch Bros has a proven business plan to help franchisees succeed.
- Marketing and advertising: The company provides franchisees with marketing and advertising materials to help them promote their business.
If you are interested in becoming a Dutch Bros franchisee, you will likely need to submit several documents including a completed application, tax returns, a business plan, financial statements, and more. The company also requires that all franchisees attend an on-site training program.
Conclusion
With its commitment to quality drinks, exceptional customer service and convenient drive-through locations, Dutch Bros is one of the most prevalent coffee franchises in the United States. If you have the necessary investment funds and qualifications, becoming a Dutch Bros franchisee may be a great business opportunity.
