Three Dog Bakery Franchise FDD, Profits & Costs (2025)
Three Dog Bakery, established in 1989 in Kansas City, Missouri, is the world’s first bakery dedicated exclusively to dogs. Founded by Dan Dye and Mark Beckloff, the company was inspired by their rescue dog, Gracie, who had food sensitivities.
To cater to her needs, they began baking wholesome, all-natural treats, leading to the creation of Three Dog Bakery.
The company began franchising in 2007 and has since expanded to over 40 locations across the United States. Each bakery offers a variety of gourmet, oven-baked treats made with human-grade ingredients, including cookies, cakes, and pastries. These products are crafted to meet the dietary needs of dogs, ensuring both taste and nutrition.
What sets Three Dog Bakery apart from other pet food retailers is its commitment to quality and community engagement. The brand emphasizes the use of real, wholesome ingredients in its treats, catering to the growing trend of pet humanization.
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Initial Investment
How much does it cost to start a Three Dog Bakery franchise? It costs on average between $181,000 – $314,000 to start a Three Dog Bakery franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount varies based on factors such as the location, size of the bakery, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $40,000 |
| Real Estate / Rent Deposit | $0 – $7,000 |
| Architect Permits, Leasehold Improvements | $20,000 – $70,000 |
| Utility and Miscellaneous Security Deposits | $2,000 – $4,000 |
| Furniture, Fixtures, Lighting Fixtures, and Supplies | $45,000 – $60,000 |
| POS and CRM System | $3,587 – $7,563 |
| Opening Inventory | $35,000 – $45,000 |
| Insurance | $1,000 – $5,000 |
| Signage (interior and one exterior) | $3,000 – $7,000 |
| Travel and Living Expenses While in Training | $1,000 – $3,000 |
| Grand Opening Marketing Requirement | $2,500 – $4,000 |
| Miscellaneous | $3,000 – $6,000 |
| Additional Funds—Three Months | $25,000 – $50,000 |
| Total Estimated Initial Investment | $181,087 – $313,563 |
Average Revenue (AUV)
How much revenue can you make with a Three Dog Bakery franchise? A Three Dog Bakeryfranchised business makes on average $502,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $856,000 yearly revenue for similar pet retail franchises. Below are a few Three Dog Bakery competitors as a comparison:
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Three Dog Bakery Franchise Disclosure Document
Frequently Asked Questions
How many Three Dog Bakery locations are there?
As of the latest data, Three Dog Bakery has 50 locations, with a mix of company-owned and franchise-owned units.
What is the total investment required to open a Three Dog Bakery franchise?
The total investment required to open a Three Dog Bakery franchise ranges from $181,000 to $314,000.
What are the ongoing fees for a Three Dog Bakery franchise?
Three Dog Bakery franchisees pay a 6% royalty fee on gross sales and a 2% marketing fee for national and regional marketing efforts.
What are the financial requirements to become a Three Dog Bakery franchisee?
To become a Three Dog Bakery franchisee, the financial requirements include a minimum net worth of $500,000 and liquid capital of at least $150,000. These financial standards ensure that potential franchisees have the resources to successfully invest in and operate the business.
How much can a Three Dog Bakery franchise owner expect to earn?
The average gross sales for a Three Dog Bakery franchise are approximately $0.50 million per location. Assuming a 15% operating profit margin, $0.50 million yearly revenue can result in $75,000 EBITDA annually.
Who owns Three Dog Bakery?
Three Dog Bakery is owned by its parent company, Three Dog Bakery, LLC.
Disclaimer
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