Dutch Bros Franchise FDD, Profits & Costs (2025)

Dutch Bros is a drive-through coffee chain founded in 1992 by Dane and Travis Boersma in Grants Pass, Oregon. The brothers began serving espresso from a pushcart, and the business quickly expanded to become a regional favorite.

The brand’s first franchise location opened in 2000, marking its growth beyond the original base in Oregon and spreading throughout the northwest. The company focuses on a variety of hand-crafted beverages, including its signature Dutch Bros Blue Rebel™ energy drink, which was introduced in 2012.

While Dutch Bros initially operated as a franchise, they have since shifted their model. The company no longer offers new franchise opportunities, transitioning to a structure where all locations are company-owned.

Regional operator positions are now exclusively offered to employees who have demonstrated exceptional performance and a strong alignment with the company’s culture.

Dutch Bros emphasizes strong community involvement and culture, dedicating efforts to making a difference through charitable programs like “Dutch Luv,” “Drink One for Dane,” and “Buck for Kids.” The brand continues to grow and has recently expanded into the southeastern United States, adding new locations regularly.

Initial Investment

How much does it cost to start a Dutch Bros franchise? Dutch Bros does not offer franchise opportunities in 2024, as all of its locations are company-owned.

Therefore, it is not possible to start a Dutch Bros franchise, and there is no associated cost for franchising with the company.

For similar coffee and tea shop franchises, however, the initial investment is on average $477,000.

In comparison, for example, Ziggi’s Coffee (a coffee shop franchise brand) requires an investment upfront of $527,000 up to $2,018,000. Here are a few competitors as a comparison:

Average Revenue (AUV)

How much revenue can you make with a Dutch Bros franchise? Since Dutch Bros is not offering franchises currently and all locations are company-owned, Dutch Bros does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its restaurants.

However, a similar coffee and tea franchise makes on average $557,000 in revenue (AUV) per year. For example, a Ziggi’s Coffee franchised shop makes on average $801,000 in revenue per year.

Frequently Asked Questions

How many Dutch Bros locations are there?

As of the latest data, Dutch Bros had a total of 912 locations across 18 states. The majority of these are company-operated, while a portion remains franchised.

At the end of 2023, the company had 831 locations, of which 542 were company-operated and 289 were franchised. The company’s growth strategy continues to focus primarily on expanding the number of company-operated stores.

What is the total investment required to open a Dutch Bros franchise?

Dutch Bros does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Dutch Bros franchise.

However, the total investment required to open a franchised shop similar to the Dutch Bros franchise ranges from $119,000 to $2,018,000.

What are the ongoing fees for a Dutch Bros franchise?

Since Dutch Bros does not offer franchises and most of its shops are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.

Yet, similar coffee franchises in the industry charge an average of 6% in royalty fees and 3% in advertising fees (e.g. Ziggi’s Coffee).

What are the financial requirements to become a Dutch Bros franchisee?

Dutch Bros no longer offers franchise opportunities to external applicants. All new locations are company-owned, and regional operator positions are given to internal employees who have demonstrated exceptional performance and alignment with the company’s culture. Therefore, there are no financial requirements for external parties to become franchisees.

For coffee shop franchises similar to Dutch Bros, the average minimum net worth requirement to become a franchisee typically ranges from $500,000 to $1.5 million.

The liquid capital requirement (cash or assets easily converted to cash) generally falls between $100,000 to $500,000. These figures can vary significantly depending on the brand, location, and scale of the operation.

How much can a Dutch Bros franchise owner expect to earn?

Since Dutch Bros is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Dutch Bros franchise.

Now, assuming the average gross sales for a coffee franchise similar to a Dutch Bros franchise of $557,000 per store. And assuming a 15% operating profit margin, $557,000 yearly revenue would result in about $83,550 operating profit per year.

Who owns Dutch Bros?

Dutch Bros is owned by Dutch Bros Inc., a publicly-traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol “BROS.” The company was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. While the company initially offered franchise opportunities, it has shifted to a model primarily focused on company-owned stores.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.