Do you want to start a coffee shop business by buying Dutch Bros franchise? If YES, here is how much it cost to open a Dutch Bros franchise and their requirement.
Dutch Bros. Coffee is a drive-through coffee shop franchise dedicated to serving quality caffeinated beverages. In addition to serving exquisite coffee in a warm and welcoming manner, this coffee franchise is all about giving back to its community.
Customers do not even have to leave their cars to pick up a cup of flavored coffee brewed from fresh-roasted beans blended on location.
Requirements to Get a Dutch Brother’s Coffee Franchise
Dutch Brothers Coffee indeed offers franchise, but sadly, this franchise offering is restricted to only existing franchisees and employees, provided they meet certain experience and financial requirements. Franchise opportunities are not offered to individuals who are not affiliated with the company.
Dutch Brothers Coffee restricts franchise availability to existing employees or franchisees in order to maintain the company’s standards for product quality and workplace culture. Dutch Bros is so determined to keep its reputation untarnished.
For instance, the company would almost always buy out a franchise that is not performing up to their standards, no matter the cost.
Frequently Asked Questions
How Long Do You Have to Work at Dutch Bros Before You Can Franchise?
It is mandated that existing employees who want to have a franchise with Dutch Brothers Coffee, must have worked for the coffee chain for at least three years with a minimum of one year as a manager. The franchisee of the location where the employee works must endorse and recommend them to the company.
How Much Does It Cost to Buy a Dutch Bros Franchise?
An employee willing to buy Dutch Bros franchise must have $5,000 in savings, a credit score of at least 675, and at least $150,000 readily available. There’s a $30,000 franchise fee up front, and after that royalty fees are 5 percent of gross sales or $1,300 a month—whichever is greater. Dutch Brothers Coffee also requires a 250-word written essay describing why the employee wants a franchise, as well as a short video essay detailing their personality.
What is the Royalty Fee for a Dutch Bros Franchise?
The royalty fees for a Dutch Bros franchise are 5 percent of gross sales or $1,300 a month—whichever is greater.
Can Non-employees of Dutch Bros Buy the Franchise?
Individuals who are not current employees must apply for a retail position at a local franchise and follow the aforementioned requirements in order to become a franchisee. This process allows them to gain first-hand experience in all aspects of running a Dutch Brothers Coffee stand.
If retail employment is not of interest, the individual may help an approved franchisee by investing in her operation. If you want to obtain a Dutch Bros franchise and you’re not an employee, you could always apply for a position first.
What is the Required Networth for Dutch Bros Franchise Applicants?
According to the Dutch Brothers Website, new franchisee applicants must have a net worth of at least $500,000, including $125,000 in cash. There’s a $30,000 franchise fee up front, and after that royalty fees are 5 percent of gross sales or $1,300 a month—whichever is greater.
How Much Profit Can You Make Owning a Dutch Bros Franchise?
It is estimated that each Dutch Bros Franchise store generates $570K – $650K total revenue depending on location. Dutch Bros source coffee and supplies direct from the growers around the world, distributes, roasts, and packages all within their global ecosystem. This leaves the average profit for a Dutch Bros store owner at an estimated $124,000 annually.
What You Must Know About Dutch Bros Franchise
Dutch Bros. strives to provide not only a quality product, but also quality customer service. The Dutch Bros. Coffee promotes a lifestyle in addition to coffee. Employees are asked to take the “Dutch Creed” which includes pledges like “To talk health, happiness and prosperity to every person you meet” and “To think only the best, to work only for the best and expect only the best.”
The company was founded on February 12, 1992 by Dane and Travis Boersma, brothers of Dutch descent, in Grants Pass, Oregon.
The brothers had bought an espresso machine and a pushcart to serve complimentary drinks to friends. Their lattes and mochas became so successful that the Boersma brothers opened a kiosk, which rapidly expanded to nearly 200 locations in 7 western states.
Dutch Bros. Coffee is believed to be the country’s largest privately-held, drive-through only coffee company in the U.S. There are more than 200 locations in Oregon, California, Washington, Idaho, Nevada and Arizona with plans to open 30 additional Dutch Bros. stores.
The coffee chain serves a variety of coffees, caffeinated beverages, and other drinks including tea, energy drinks, smoothies, hot cocoa, soda, and lemonade including a “not-so-secret menu”. Last Year, Dutch Bros. served more than 23 million cups of coffee company-wide, with more than $46 million in gross sales.
This coffee chain makes it a point to give back one percent of their gross sales to their communities. In 2007, the company donated nearly $500,000 to nonprofit organizations such as MDA, American Cancer Society, Boys & Girls Clubs of America and many other local organizations.