Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average Annual Gross Revenue for Traditional and Non-Traditional Dunn Bros. Coffee Shops

by Franchise Chatter on November 27, 2012

in Coffee Franchise, Franchise Earnings



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Highlights of Dunn Bros. Coffee’s Item 19 Financial Performance Representations (2012 FDD)

Estimated Initial Investment

  • The franchise offered is for the operation of a Dunn Bros. Coffee shop at an authorized location. A Dunn Bros. Coffee shop is a retail outlet in which you will use state of the art, on-site micro-roasting techniques to allow you to produce daily, fresh-roasted, high-quality coffee, and sell this coffee at the peak of its aromatic freshness.
  • The total investment necessary to begin operation of a Dunn Bros. Coffee shop is from $210,000 to $429,400. This includes $32,000 that must be paid to the franchisor for your first franchise, or $25,250 that must be paid to the franchisor if you already operate a Dunn Bros. Coffee shop.
  • The total investment necessary to begin operation of a Dunn Bros. Coffee Express shop is from $139,000 to $290,000. This includes $24,000 that must be paid to the franchisor for your first franchise, or $19,500 that must be paid to the franchisor if you already operate a Dunn Bros. Coffee shop.
  • If you add the Provisions Program to your Dunn Bros. Coffee shop or Dunn Bros. Express Coffee shop, the total additional investment necessary to begin offering Provisions Products ranges from $18,100 to $29,000. This includes $0 that must be paid to the franchisor or its affiliates.

Introductory Comments to Item 19

  • The figures below are the actual 2011 annual Gross Revenue averages for the Coffee Shops in operation during the entire 12 month period ended December 31, 2011. These figures are for the Shops operated by franchisees, the franchisor or its affiliates.
  • There were 79 franchised and company-owned Shops in operation during the entire 12 month period in 2011, and the averages below include 63 out of those 79 shops. The remaining 16 shops were not included because:  the Shops were located in non-traditional sites (such as airports or convention centers) (3 Shops); the Shops are co-branded locations (3 Shops); the Shops were relocated during the 12 month period (3 Shops); the franchisor did not receive complete data (2 Shops); the Shop offered no food products (1 Shop); the Shops offered additional food products (3 Shops); and the Shop was not open the entire 12 month period due to the seasonal nature of the Shop location (1 Shop).
  • The figures below are based on information that the franchisor has received from the operators for each Shop. The figures have not been audited.
  • Each of the Shops included in this Financial Performance Representation features fresh-roasted coffee beans, brewed coffee, and other products offered for sale, which are substantially similar to the franchise business described in the disclosure document.
  • Gross Revenues means the total actual receipts for all products and services sold by the Shop, whether or not identified by the Trademarks, whether at wholesale or retail, for cash or credit or in any other way, but excluding federal, state, municipal, or other sales, value added, or retailer’s excise taxes collected from customers and paid to the appropriate taxing authority.
  • The Shop performance results included in this statement relate to 2011 performance results for the specific Shops included in this statement. Many factors, including location, management capabilities, local market conditions, and other factors are unique to each Shop and may significantly impact the financial performance of your Shop.

2011 Annual Gross Revenue Average for Traditional Dunn Bros. Coffee Shops



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