How Much Does a Dutch Bros Coffee Franchise Cost?
Dutch Bros Coffee is a popular coffee franchise based in Oregon. The company has become a much-loved staple in many parts of the United States, with its signature drinks being a hit among Americans who enjoy a great cup of joe. But how much does it cost to become a Dutch Bros franchisee?
Initial Costs
For the sake of evaluating the total cost, prospective franchisees should take into consideration the following costs:
- Purchase Fee: Dutch Bros charges a one-time franchise fee of $35,000.
- Lease Payments: Lease payments for the store will be determined by the specific location.
- Equipment: Equipment expenses can vary dramatically but can generally be estimated at approximately $85,000.
- Other Expenses: Additional start-up costs can include inventory, insurance, marketing materials, and any legal expenses that may need to be paid.
Ongoing Costs
Once the franchise is up and running, other ongoing costs should be taken into account. These include:
- Marketing and Advertising: Dutch Bros provides a marketing and advertising allowance for each of its respective franchisees, which comes out of their royalty fees.
- Royalties: The franchise must pay a 6% royalty fee on their total monthly gross sales.
- Accounting and Legal: Franchisees are responsible for accounting and legal costs associated with their business.
Total Cost of a Dutch Bros Coffee Franchise
At the end of the day, the total cost of a Dutch Bros Coffee franchise typically falls within the range of $120,000 – $150,000. Although the initial costs may be a bit steep, the company’s established brand and unique coffee recipes greatly improve the chances of success when taking into consideration the costs associated with opening a typical coffee shop.
