Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Considering a Dunn Brothers Coffee Franchise? Don’t Overlook These 21 Important Franchise Fees

by Franchise Chatter on July 21, 2017

in Coffee Franchise, Franchise Fees



Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List

If you are considering a Dunn Brothers Coffee franchise, don’t get blindsided by these 21 important franchise fees (from the initial franchise fee, to the royalty fee, to 19 other fees found in Items 5 and 6 of Dunn Brothers Coffee’s 2017 FDD).

1.  Initial Franchise Fee:  $30,000 to $37,000



  • You must pay to Dunn Brothers Coffee an “Initial Franchise Fee” of $37,000 for the first Franchise Agreement you sign for a Dunn Brothers Coffee Shop.
  • The Initial Franchise Fee for franchisees who have at least one Dunn Brothers Coffee Shop in operation is $30,000.
  • When you pay Dunn Brothers Coffee the Initial Franchise Fee for your first Shop, you will receive a one-time $2,000 credit towards the cost of a coffee origin tour that Dunn Brothers Coffee organizes that you must attend within 24 months after you sign the Franchise Agreement.
  • The reduced Initial Franchise Fee for subsequent Shop openings does not include a credit towards the cost of a coffee origin trip.
  • The Initial Franchise Fee is payable when you sign the Franchise Agreement.
  • Upon completion of the training course, the Initial Franchise Fee is not refundable.
  • However, Dunn Brothers Coffee will refund the Initial Franchise Fee, less $10,000 for its expenses incurred in providing services to you (including expenses incurred for processing the application, travel expenses, attorneys’ fees, and other related costs), if you fail Dunn Brothers Coffee’s training program.
  • In addition, if you cannot find a location acceptable to Dunn Brothers Coffee (you must receive its written consent to any proposed location) within 6 months after you sign the Franchise Agreement, you can, on or before the 6 month anniversary of the date you sign the Franchise Agreement:  (i) request a refund of the Initial Franchise Fee, less $10,000; or (ii) request an additional period of 3 months within which to find a location and obtain Dunn Brothers Coffee’s consent to that location.
  • If you request an extension as described above and do not find a location and obtain Dunn Brothers Coffee’s consent within the additional 3 month period, Dunn Brothers Coffee will not refund any portion of your Initial Franchise Fee.
  • If Dunn Brothers Coffee issues you a refund and you have already used your $2,000 credit towards a coffee origin trip, it will retain an additional $2,000 of the Initial Franchise Fee.
  • Any amounts that Dunn Brothers Coffee refunds, as described above, will be refunded within 60 days after your request.
  • Except as described above, the Initial Franchise Fee is not refundable in whole or in part under any circumstances.

2.  Development Fee:  $45,000 to $82,000

  • Dunn Brothers Coffee currently provides two programs which allow for the payment of a discounted Initial Franchise Fee to franchisees willing to commit to open 2 or 3 Shops.
  • The first program is for a new Dunn Brothers Coffee franchisee to open 3 Shops for a total Initial Franchise Fee of $82,000. If you are a new Dunn Brothers Coffee franchisee, the total Initial Franchise Fee includes a single $2,000 credit towards the cost of a coffee origin tour as described in Item 11.
  • The second program is for existing Dunn Brothers Coffee franchisees looking to open 2 additional shops for a discounted Initial Franchise Fee of $45,000. The total Initial Franchise Fee does not include a credit towards the cost of a coffee origin tour.
  • The Initial Franchise Fee is payable in full at the time you sign the Development Agreement. You will sign a separate Franchise Agreement for each Shop.
  • Your second Shop is not required to be open until 12 months after the opening of your first Shop and your third Shop (if applicable) is not required to be open until 12 months after the opening of your second Shop.
  • If you should enter into a Development Agreement in order to receive a discounted multiple Shop Initial Franchise Fee, the Initial Franchise Fee is not refundable under any circumstances.
  • In addition, Dunn Brothers Coffee may discount the Initial Franchise Fee for Shops located in Captive Market Locations (as defined in Item 12).

3.  Continuing License Fee:  5% of your Gross Sales

  • Due Date:  On or before the 5th business day of the month following the month for which the fee is due.

4.  National Marketing Fund Contributions:  3% of your Gross Sales; may be raised up to 4% with 90 days written notice

  • Due Date:  On or before the 5th business day of the month following the month for which the fee is due.

5.  Local Marketing:  1% of your Gross Sales; may be raised up to 2% with 90 days written notice

  • Due Date:  Minimum amount must be spent during each calendar year.

6.  Co-op Advertising Fee:  will vary under circumstances

  • Due Date:  When incurred.
  • The combined amount of the National Marketing Fund Contributions, local marketing expenditures, and Co-op Advertising Fees will not exceed 5% of your Gross Sales.

7.  Franchise Renewal Fee:  25% of the then-current Initial Franchise Fee for new Dunn Brothers Coffee franchisees



  • Due Date:  At time of renewal.
  • If you do not sign applicable renewal documents (including Dunn Brothers Coffee’s then-current Franchise Agreement) and pay the renewal fee before expiration of your Franchise Agreement, the renewal fee will increase by $5,000.

8.  Transfer Fee:  50% of the then-current Initial Franchise Fee for new Dunn Brothers Coffee franchisees, plus $1,000

  • Due Date:  At time of transfer.

9.  Additional Training:  will vary under the circumstances

  • Due Date:  When incurred.

10.  Audit and Recordkeeping Costs:  will vary under circumstances

  • Due Date:  After inspection or audit.

11.  Interest Expenses:  18% per year or the maximum rate permitted under applicable law

  • Due Date:  When due.
  • Due on all past due fees and any other amounts owed to Dunn Brothers Coffee or its affiliates under the Franchise Agreement.

12.  Late Fee:  $50 per month

  • Due Date:  When incurred.
  • Due on all past due fees and any other amounts owed to Dunn Brothers Coffee or its affiliates under the Franchise Agreement.

13.  Repair and Maintenance Expenses; Modernization Expenses:  will vary under circumstances



  • Due Date:  When incurred.

14.  Re-imaging and Modernization Expenses:  will vary under circumstances

  • Due Date:  When incurred.

15.  Insurance:  $4,200 to $9,600 or more for annual premiums which will vary under the circumstances

  • Due Date:  When premiums are due.

16.  Computer System (including Website, Data Warehouse, and Online Communication Fees):  currently, $80 per terminal per month and $39 per month for firewall protection per Shop. Other costs will vary based upon the location’s specific circumstances.

  • Due Date:  When due.

17.  Online Ordering Fees:  estimated at $100-$120 per month

  • Due Date:  On the due date established by Dunn Brothers Coffee or its designated supplier.

18.  Indemnification:  will vary under circumstances

  • Due Date:  When incurred.

19.  Franchise Conference Fee:  currently, $100 per meeting

  • Due Date:  When incurred.
  • If you fail to attend a mandatory meeting, Dunn Brothers Coffee may charge you a fee.

20.  Relocation Fee:  $2,000

  • Due Date:  Due when you submit a proposed new location.
  • If you relocate your Shop, you must obtain Dunn Brothers Coffee’s prior written approval and pay to it the Relocation Fee.
  • You pay all costs of relocating.

21.  Non-Compliance Fee:  up to $500 per occurrence per day, plus $1,000 for legal costs associated with the default, if applicable

  • Due Date:  When due.
  • In addition to Dunn Brothers Coffee’s right to terminate the Franchise Agreement, if you fail to comply with the terms of the Franchise Agreement or any standards and specifications required pursuant to the Operations Manual, you must pay Dunn Brothers Coffee a fee in the amount assessed by it, up to a maximum of $500 per occurrence per day, plus $1,000 for legal costs associated with the default, if applicable, in order to offset Dunn Brothers Coffee’s costs incurred to address the default.

Franchise Matching Quiz



Franchise Matching Quiz

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: