Dutch Bros Franchise Stores Guide (How to apply, opening costs + more information)

Many businesspeople who love Dutch Bros have been having the question, “what are Dutch Bros franchise stores?” Well, read on to find out.

Dutch Bros franchise stores are coffee shops licensed by Dutch Bros to sell the company’s products and use its branding name and knowledge in exchange for a franchise fee and royalty fee. I have worked as a Dutch Bros barista for almost seven years. However, I have decided to go beyond, and own a Dutch Bros Franchise store. About a month and a half ago, I quit my job and started learning about these franchise stores. Through my research, I found that many people also want to learn about these stores and decided to write this article. It includes a guide and all the information you may need about Dutch Bros franchise stores, so read till the end.

How do I apply for the Dutch Bros franchise store?

Currently, Dutch Bros no longer offers the option of the franchise to people outside the company. The opportunity is only available to those who have worked at Dutch bros or are current franchisees. The drive-thru wants to work with people with exceptional employment history and embody its culture.

Dutch Bros was founded in Southern Oregon in 1992, and its first coffee shop was started during this year. Today, there are more than 295 franchise locations worldwide. Dutch Bros has been offering franchise opportunities since 1999 to people from different countries worldwide. However, in 2008, Dutch Bros changed to internal franchising, where the franchisee needed to have worked in the company for more than three years.

Therefore, those qualified to apply for the Dutch Bros franchise store can do it online through this site. Below is how you can open a Dutch Bros Franchise store.

• Ensure you have worked at Dutch Bros for at least three years.
• Have the capitalization, which is a liquid capital of $150,000 and a net worth of $500,000.
• Consider the cost of building and signs, equipment, license and permits, insurance, uniforms, and more.
• Assess your market availability by checking available markets at the location you want to start the franchise store.
• Submit your application at this site, where the Dutch Bros franchise team will review it and decided whether you are qualified to own a franchise store.
• Wait to receive franchise approval after your financial and background checks are done, and you have met all the requirements of Dutch Bros franchise owners.

After applying, wait for about 24 hours to get the company’s response. They will guide you on the next steps you are to take if you are qualified for the franchise. In case of any inquiries, while applying for a Dutch Bros franchise store, you can contact them at DutchBros.com.

How much does it cost to open a Dutch Bros franchise store?

The exact cost of opening a Dutch Bros Franchise store can be hard to calculate since it varies depending on the location of the franchise store. However, according to people who have opened Dutch Bros Franchise Stores, one should have at least $1,000,000. The amount can be less or more, so it is best to inquire with those who own a Dutch Bros Franchise store in the area or near the area you want to open yours.

To break the amount down, Dutch Bros requires one to have a minimum net worth of $500,000, including liquid cash of $150,000. Therefore, the minimum required capital is $650,000. Additional costs include a Franchise fee which is $30,000 and a royalty fee of $1300 a month.

The remaining amount covers other marketing fees like securing a good store and getting uniforms for the workers. Additionally, the franchise may need a couple of months to start making a profit; hence it is best to have extra money to help run the store until it picks a good market. But, if you are at a good location where people love Dutch Bros, this may not be a problem.

How much do Dutch Bros franchise stores make in profit?

It is quite hard to estimate the exact profit a Dutch Bros Franchise store makes since it varies depending on various franchise stores. However, as per the data, Dutch Bros generally makes a profit of around $494 million. Therefore, Dutch Bros franchise stores make approximately $1.5 million each, making a profit of about $124,000.

However, some Dutch Bros may be making more since the profit is influenced by factors such as the location, service provided, and management of the franchise stores. Different Dutch Bros stores have different operating hours. Some Dutch Bros franchise stores operate for longer hours, meaning they make more sales than those operating for fewer hours.

Also, different Dutch Bros have different numbers of employees, and the employees’ salaries differ depending on the store’s location. If a store has employees with high pay rates or many employees, the money used may be a lot, making the store make less profit. These are some of the factors that make it hard to estimate the profit Dutch Bros Franchise stores make.

Therefore, it is best to inquire from Dutch Bros franchisees that have stores in the area you want to open your franchise store and know the profit they make. It will enable you to estimate the profit you will be making and set a good store plan to make a profit that satisfies you.

What are the requirements for Dutch Bros franchise stores?

Dutch Bros has set several requirements that those who want to open a Dutch Bros franchise Store must meet. You cannot get approval to open a Dutch Bros franchise store without meeting these requirements.

One requirement that one must meet is; one must have worked at the company for at least three years. Dutch Bros wants their franchisees to have worked and shown outstanding employment history at the company. Dutch Bros workers know the culture and mission of the company; hence they will do their best to achieve and maintain its culture when they open their franchise store.

Another requirement is; one must have been a Dutch Bros manager for at least a year. Being a Dutch Bros manager shows that the person has the skills to run a Dutch Bros franchise. A manager is like the owner of a Dutch Bros store; hence they have the experience of making decisions that benefit the company and will run their franchise store with no problem.

Another requirement is a recommendation from the Dutch Bros franchisee at the store one works. Dutch Bros Franchises Team should get a recommendation letter from a franchisee showing that you are qualified to run a franchise store. This also shows that you have worked at the store for more than three years and have been a manager for at least a year.

The final requirement is that one should meet their financial requirements. You should have a minimum liquid cash of $150,000 and a net worth of $500,000 as your initial investment. Dutch Bros is a very famous company, and one has to have a good sum of money to open a standard Dutch Bros franchise store.

How many franchised Dutch Bros stores are there?

There are 264 franchised Dutch Bros Stores in 11 locations. The coffee chain started franchising in 1999. From 1999 to 2008 the drive-thru opened around 100 franchise stores.

In 2008, Dutch Bros transitioned from external to internal franchising which required the franchisees to have worked at the company. This enabled the company to work with people experienced with their culture and goals. Many franchised stores opened through this period, and they thrived well in the market.

In 2017, Dutch Bros stopped offering franchising opportunities. It started opening company-operated drive-thru stores. Today, there are 264 franchised stores and more than 400 company-operated stores. To prevent its franchise stores from closing, the company buys the stores that seem to be failing or not meeting the company’s requirements to provide standard customer service.

What are the terms and conditions of the agreement for Dutch Bros franchise Stores?

Dutch Bros does not give information on the terms and conditions one should agree to before getting a Dutch Bros Franchise store since they are not offering franchise stores. However, according to sources from people who have applied for a franchise, some terms and conditions include.

• Donation to the Muscular Dystrophy Association: Every Dutch Bros Franchise store should donate a one-day made profit to this associate. This means that the franchise should donate a total amount equal to the profit it makes in a day. After the death of cofounder Dane Boersma due to Lou Gehrig’s disease, Dutch Bros started making this donation and wants to continue with his culture to honor Dane.
• Each Dutch Bros Franchise store should invest 1% of its gross sale in the community. Dutch Bros takes pride in giving back to the community and wants all its franchise stores to follow and continue with this culture.
• One should own a store where they sell the company’s products: One condition is that one should have a physical shop where they will be selling Dutch Bros products. Most Dutch Bros stores are drive-thru; hence it is best to get a drive-thru store. Also, the store should have a Dutch Bros sign, and the employees working there should have a Dutch Bros uniform.
• All products sold at Dutch Bros franchised stores should have the company’s brand name and be original. The franchise store should not manufacture coffee and sell it at the store. Also, it cannot sell coffee from another company at the store. Dutch Bros provides some of the products, such as cups and ground coffee used at the stores to enable the franchise stores to sell original products.
• The franchisee cannot sell the Dutch Bros products on an individual website or any e-commerce platform like Amazon: Dutch Bros does not allow the franchisees to sell the products online unless it is through the company’s website. All products sold online either through websites or e-commerce platforms should be from Dutch Bros. Franchisees should not use individual online shops or websites to sell Dutch Bros products or a replica of Dutch Bros products.

FAQ SECTION

What are the benefits of Dutch Bros franchise stores?

Some of the benefits of Dutch Bros franchise stores include; getting unique recipes from the company, getting training on how to start and run a business, getting constant support from Dutch Bros, and getting well-established plans and processes.

How long does it take for Dutch Bros to approve applications to open a franchise store?

After applying for a Dutch Bros franchise store, it takes around 24-48 hours for the Dutch Bros Franchise Team to approve the application.

Does Dutch Bros train employees for its franchise stores?

Yes, Dutch Bros gives training to employees for its franchised stores.

Are Dutch Bros franchise stores profitable?

Yes, Dutch Bros franchised stores are very profitable. The profit made at the stores can be attributed to several factors, including the management and operating hours of the store. Some stores work 24/7 while others work for less than twelve hours. This brings a difference in the profit made, though all the franchise stores make a good profit.

What is the success rate for Dutch Bros franchise stores

One cannot estimate the success rate for Dutch Bros Franchise Stores since the company does not disclose its franchise stores’ financial statements. However, it must be high since Dutch Bros is recording increases in Gross profit and revenue.

How many Dutch Bros franchise stores are closed in the US today?

There is no record of closed Dutch Bros Franchise stores in the United States. This is because Dutch Bros buys franchised stores from the franchisees if they find that the store cannot meet their customers’ service standards and the company’s conditions.