Dutch Bros is more than just a coffee company, it is a movement. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, Dutch Bros has grown into one of America’s most recognisable drive-thru coffee brands, known for its electric culture, community vibe, and a loyal customer base that rivals global giants. With over 800 locations across the United States and a growing footprint, it is no surprise that entrepreneurs everywhere are curious about the Dutch Bros franchise cost and whether they can get in on the action.
In this comprehensive startup guide, we break down everything you need to know, from how to open a Dutch Bros franchise to the real numbers behind the Dutch Bros franchise model, the reasons behind its exclusive ownership structure, and smart alternatives for ambitious entrepreneurs.
If you’re dreaming of owning a buzzing coffee outlet or just exploring profitable franchise opportunities, you’ll find expert insights and actionable tips here to help you make the right decision.
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Key Takeaways
- Dutch Bros has built a thriving coffee empire by prioritising culture, consistency, and community over rapid franchising.
- Traditional franchise ownership is no longer available, internal promotion is now the only path to becoming a Dutch Bros operator.
- The brand’s success lies in its controlled growth model, high customer loyalty, and experience-driven service strategy.
- For entrepreneurs inspired by Dutch Bros, the real opportunity lies in replicating its values, vibrant culture, streamlined operations, and human connection.
Dutch Bros at a Glance
Before diving into the costs, ownership model, and startup considerations, it is important to understand the brand behind the buzz. Dutch Bros isn’t just another coffee shop, it is a cultural phenomenon built on community, energy, and purpose.
Dutch Bros was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. What began as a pushcart selling espresso in a small town has grown into one of America’s fastest-expanding drive-thru coffee brands. By 2025, the company boasts over 800 locations across the United States.
What Makes Dutch Bros Different?
Unlike traditional café chains that focus on brick-and-mortar dine-in experiences, Dutch Bros operates almost entirely through drive-thrus. This model is built for speed, volume, and convenience, catering especially to on-the-go millennials and Gen Z consumers.
But what truly sets the brand apart is its culture. Dutch Bros employees, affectionately known as “Broistas,” are trained not just in making drinks but in creating moments. Through its personalised greeting, upbeat music blasting from the booth, and heartwarming conversations during morning coffee runs, the Dutch Bros experience feels more like a vibe than a transaction.
While the menu includes your typical espresso drinks, what turns heads are Dutch Bros’ signature offerings. These include customisable flavoured sodas, smoothies, frosts, and the iconic Dutch Bros Blue Rebel, an energy drink beloved by its loyal customers.
Who’s It For?
Dutch Bros appeals to a young, energetic, and loyal customer base. Its playful branding, consistent customer service, and social media savviness make it a hit with college students, young professionals, and suburban families.
Can You Still Own a Dutch Bros Franchise?
If you’ve ever been through a Dutch Bros drive-thru, felt the energy, tasted the drinks, and thought, “I’d love to own one of these,” you’re not alone. The brand’s undeniable vibe and loyal customer base make it a dream business for many entrepreneurs. But here’s the real talk for 2025: owning a Dutch Bros franchise as an outsider is, quite frankly, off the table.
Back in the early 2000s, Dutch Bros operated under a traditional franchising model. Independent entrepreneurs could apply, pay a franchise fee, and set up their own Dutch Bros outlet. But in 2008, the company made a major pivot. It stopped offering franchises to the public and moved toward a company-operated store model.
Why? Control and culture.
Dutch Bros built its brand on consistent, high-energy customer experiences and a deeply rooted team-first culture. With franchising, it was harder to control these elements across hundreds of independently owned stores. By owning and operating its locations, Dutch Bros ensures every outlet lives and breathes its brand DNA from the music playing in the booth to how Broistas greet customers.
How to Gain Ownership In 2025
If you’re serious about owning a Dutch Bros franchise today, there’s only one real path forward: start from within.
Ownership is reserved exclusively for employees who’ve proven themselves over time. The company actively promotes Broistas who show leadership, dedication, and alignment with its values. It is a long game, usually requiring years of service, mentorship, and performance, but it is the only route that Dutch Bros currently supports.
In other words, Dutch Bros doesn’t care if you have deep pockets. They care if you can protect and amplify their culture. If you’re not willing to be part of the team first, ownership simply isn’t an option.
Of course, if you want to get started in the coffee business right away, this approach may not be for you, but don’t worry – later in this guide, we’ll also highlight other coffee businesses that are equally rewarding and open to new entrepreneurs.
Dutch Bros Franchise Cost: Comprehensive Breakdown of the Investment
While Dutch Bros no longer offers traditional franchise opportunities, understanding the financial commitment behind launching one of their locations gives valuable insight into the scale, standards, and strategy of the business.
If you’re exploring legacy opportunities or benchmarking for your own coffee venture, here’s what the numbers reveal.
1. The Initial Franchise Fee
The starting point of the investment is the franchise fee, a one-time payment required to join the Dutch Bros system. For those eligible to open a location, this fee is typically $30,000. It grants the rights to use the Dutch Bros brand name, logo, and the proprietary systems that power its success across the United States.
2. Minimum Liquid Capital and Net Worth
Dutch Bros expects its franchise operators, those already within its system, to demonstrate a strong financial footing. Based on the latest requirements, applicants must have at least $150,000 in liquid capital and a minimum net worth of $500,000.
This financial stability is crucial for covering upfront costs such as the franchise fee, store build-out, equipment, and opening inventory. The net worth requirement also ensures that operators can navigate the early stages of launching and stabilising the business without cash flow strain.
3. Total Initial Investment
The full cost of launching a Dutch Bros location varies depending on several factors, including location, size, and local construction costs. That said, total startup costs typically fall between $150,000 and $500,000.
Below is a breakdown of where your money would go if you were eligible to open a store.
Real Estate and Location
Because Dutch Bros operates almost exclusively through drive-thru models, securing the right piece of land is critical. Locations with high visibility and constant traffic, near shopping centres, university towns, or main roads, are ideal. You may need to lease or purchase land, and costs can vary widely based on the region.
The goal is to position your store where you can consistently attract the footfall and vehicle traffic that defines the Dutch Bros brand.
Store Build-Out and Design
One of Dutch Bros’ defining features is its instantly recognisable building design and branding. Store construction can range between $200,000 and $400,000, depending on square footage, site conditions, local regulations, and the complexity of the design.
Every store is expected to maintain the brand’s unique look and layout, ensuring consistency across the entire network.
Equipment and Technology
A Dutch Bros outlet is built for speed, and that starts with the right tools. Budget between $50,000 and $100,000 for high-performance espresso machines, commercial blenders, refrigeration units, and other specialty coffee equipment.
You’ll also need advanced ordering and point-of-sale (POS) systems. These aren’t optional, they’re critical to delivering the quick, seamless service Dutch Bros customers expect.
Inventory and Opening Supplies
Before opening your doors, you’ll need to stock up on essential ingredients like coffee beans, dairy products, flavoured syrups, and other beverage components. Dutch Bros is known for its extensive custom drink menu, which means quality inventory is non-negotiable.
Initial inventory costs typically range between $10,000 and $20,000, depending on the size and scale of your operation.
4. Ongoing Royalties and Fees
While the upfront investment gets you in the door, ongoing royalties are what keep the support system running. These recurring fees help maintain the Dutch Bros brand, fund nationwide marketing campaigns, and provide continued operational support for franchisees within the system.
Here’s what you can expect:
- Royalty Fee: 5% of your gross sales
- Marketing Fee: 2% of your gross sales
These contributions go toward the company’s broader infrastructure, covering everything from regional advertising to national branding initiatives, technology support, and the customer experience standards that keep Dutch Bros competitive in a saturated coffee market.
5. The Profit Potential
One of the biggest questions on any entrepreneur’s mind is this: Is it worth the investment?
Opening a Dutch Bros location requires a substantial financial outlay, and ongoing costs like staff salaries, utility bills, and constant inventory replenishment can quickly add up. Still, the Dutch Bros business model has been built for high performance and strong returns.
A big part of its success comes from the drive-thru-only format, which allows stores to serve a high volume of customers with speed and efficiency. This not only reduces overhead but also drives higher sales per location, especially in areas with heavy traffic.
Customer loyalty also plays a major role. Dutch Bros has cultivated a community of repeat buyers who return daily for their favourite drinks, boosting consistency in revenue. Thanks to quick service, a tight menu, and an energetic team culture, stores become local hotspots in no time.
Once operations are running smoothly, many Dutch Bros operators report annual revenues between $1 million and $1.5 million, or even more in prime markets. While exact figures depend on location and management, the potential for solid returns is real and well-documented within the brand’s network.
6. The Road to Opening: What You’ll Need Beyond the Cost
Opening a Dutch Bros location involves more than just covering the financial investment. Other critical steps influence your timeline and overall readiness.
Dutch Bros places a strong emphasis on preparation, offering comprehensive training and ongoing support to ensure every operator is set up for success. From day one, you’ll go through structured onboarding that covers operational management, team leadership, and customer service, everything needed to deliver the Dutch Bros experience at a consistently high level.
Once you’ve secured your spot in the system, the next big hurdle is site selection and construction. You’ll need to get corporate approval for your chosen location before moving into buildout. Because Dutch Bros locations are built to a specific design standard, construction can’t begin until the plans meet brand expectations and all regulatory requirements are in place.
This phase takes time. Depending on the complexity of the site, local permitting, and construction schedules, the period between signing your agreement and opening your doors can stretch anywhere from six months to a year.
7. Renewal Fees and Franchise Agreement Terms
A typical Dutch Bros franchise agreement runs for ten years, with the option to renew once the term ends. While renewal fees and conditions are usually outlined in the original contract, Dutch Bros has a strong reputation for fostering long-term partnerships with its operators. The goal is to ensure that the relationship remains mutually beneficial and aligned with the brand’s values.
That said, Dutch Bros isn’t a fit for every aspiring entrepreneur. The model is designed for individuals who not only meet the financial thresholds but also fully embrace the company’s culture and operational standards. This is a business that demands both capital and commitment.
The requirements are rigorous: large upfront investments, ongoing operational demands, and deep brand alignment. But for those who meet the mark, the payoff can be significant. With its efficient drive-thru model, strong customer loyalty, and proven operational playbook, Dutch Bros continues to offer a compelling return for the right type of franchise partner.
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Pros and Cons of Owning a Dutch Bros Franchise
Like any business opportunity, owning a Dutch Bros franchise comes with its share of rewards and challenges. While the brand’s success speaks for itself, the path to ownership is selective, and the demands are high. Here’s a quick overview of the key advantages and potential drawbacks to help you weigh the decision.
| Pros | Cons |
|---|---|
| Strong Brand Recognition – Highly recognisable and loved across the U.S. | Franchise Closed to Outsiders – Only internal candidates are eligible. |
| High Revenue Potential – Locations can generate $1M+ annually. | High Initial Investment – Startup costs range from $150K to $500K+. |
| Loyal Customer Base – Cult-like following ensures steady foot traffic. | Strict Cultural Fit Required – Ownership demands deep alignment with the brand’s values. |
| Efficient Drive-Thru Model – Designed for volume, speed, and convenience. | Limited Flexibility – Franchisees must strictly follow corporate systems and design standards. |
| Ongoing Training and Support – Comprehensive onboarding and operational guidance. | Long Onboarding Timeline – Site approval and buildout can take 6–12 months |
A Step-by-Step Guide On How To Open a Dutch Bros Franchise
Trying to figure out how to start a Dutch Bros franchise in 2025? Due to the discontinuation of traditional franchising, you will have to earn your place on the team first.
Below, we outline a step-by-step guide to enable you to move from barista to owner.
Step 1: Understand the Internal Model
Dutch Bros doesn’t follow the traditional franchising route. Instead, ownership is reserved exclusively for those who’ve come up through the ranks. To even be considered, you’ll need to start by joining the company, whether as a Broista, shift lead, or in another hands-on role and immerse yourself fully in its day-to-day operations and energetic culture.
Dutch Bros looks for people who live and breathe the brand long before they ever run a location.
Step 2: Establish a Track Record of Leadership
Excelling in your role is just the beginning. To move toward franchise ownership, you’ll need to prove yourself as a leader. That means going beyond the basics. Show initiative, take on extra responsibilities, and become someone your team can rely on.
If you’re leading a shift, mentoring new hires, or organising local community events, Dutch Bros wants to see that you’re invested in people, performance, and the bigger picture.
Step 3: Submit a Franchise Candidacy Application
Once you’ve proven yourself as a leader and have the financial groundwork in place, it’s time to take the next step. Let your regional development team know you’re ready to pursue ownership. They’ll review your performance history, assess your leadership contributions, and begin guiding you through financial planning.
If you meet the criteria, you’ll also start discussions around potential locations and long-term viability as a franchise operator.
Step 4: Secure Funding and Site Approval
To move forward, you’ll need to meet the financial requirements. You must have a minimum net worth of $500,000 and at least $150,000 in liquid assets. Once your finances are in order, you’ll work closely with Dutch Bros’ real estate team to identify and evaluate potential drive-thru locations.
These sites must meet the brand’s high-traffic and high-visibility standards to ensure long-term success and alignment with its operational model.
Step 5: Launch Your Franchise
With your site approved and funding secured, it’s time to bring your Dutch Bros location to life. This phase includes the full build-out; everything from store construction and equipment installation to recruiting and training your team. Every detail must align with Dutch Bros’ standards to deliver the signature customer experience from day one.
The Dutch Bros journey may be unique, but the path to success follows a clear blueprint: understand the internal model, build your leadership track record, apply for candidacy, secure funding and site approval, and open your store.
Even if Dutch Bros isn’t an option for you right now, this process can easily be adapted to succeed in other high-performing franchise systems.
Licences and Legal Requirements for a Dutch Bros Franchise
Launching a Dutch Bros franchise or any food and beverage business goes beyond branding, training, and financial investment. To operate legally and without disruptions, you’ll need to secure several key licences and ensure ongoing compliance with local, state, and federal regulations.
Here’s a breakdown of the essential legal requirements every Dutch Bros franchise owner must meet before opening their doors.
Business Operating Licence
This is the most basic and essential licence. It is issued by your city or county and gives you legal permission to operate a business in your selected location. Without it, you can’t begin any operations.
Apply early for this license as processing times can vary depending on local government capacity.
Food Service Permit
Because Dutch Bros serves beverages, including dairy-based and perishable items, you’ll need a permit from your local health department. This usually involves an inspection of your store’s cleanliness, food handling processes, and safety standards.
This is not a one-time approval. Health departments may conduct regular inspections to ensure ongoing compliance.
Zoning and Land Use Permits
Dutch Bros stores rely heavily on drive-thru access and high-traffic locations, so the site must meet strict zoning criteria. Before construction or leasing begins, confirm that your chosen location is zoned for commercial food service and drive-thru operations.
Dutch Bros’ corporate development team usually helps navigate this process, but you’ll still be responsible for following up with local authorities.
Employer Identification Number (EIN)
You’ll need an EIN from the Internal Revenue Service (IRS) to legally hire employees and manage payroll. It also serves as your business’s tax ID and is required when filing federal or state business taxes.
Sales Tax Permit
Every transaction at your Dutch Bros location will include sales tax, which means you must register for a sales tax permit in your state. This allows you to collect sales tax from customers and remit it to the appropriate tax authority.
Stay organised with monthly or quarterly tax filing deadlines to avoid penalties.
Signage Permits
Dutch Bros locations often feature vibrant signage and branded designs, but cities usually have specific regulations around size, placement, and visibility. Before installing any exterior signs, you’ll need approval from your city’s planning department.
This includes monument signs, wall logos, LED displays, or anything visible from public roads.
Ongoing Compliance and Renewals
Acquiring your licences is just the beginning. Many of these permits, especially health, business, and signage licences, must be renewed annually or biannually. Missing renewal dates or failing to meet updated regulations could result in fines or even temporary closure
Licensing might not be the most glamorous part of opening a coffee franchise, but it is one of the most important. Proper planning, early applications, and ongoing compliance can save you months of delays and protect your business from legal risks.
Entrepreneurs.ng also offers business registration and compliance services to help entrepreneurs fast-track these processes with confidence. Explore our services here.
Dutch Bros vs. Other Coffee Franchises
In a crowded and competitive coffee market, comparing the top players is essential before making an investment decision. Dutch Bros is undoubtedly a standout brand, but how does it compare to giants like Starbucks, Dunkin, and emerging favourites like Biggby?
Here’s a side-by-side look at how these franchises stack up in terms of investment, access, and operational model:
| Franchise | Franchise Fee | Initial Investment | Royalty Fee | Ownership Access | Business Model |
|---|
| Dutch Bros | ~$30,000 | $150,000 – $500,000+ | 5% | Internal promotion only | Drive-thru focused, company-controlled |
| Starbucks | N/A (licensing only) | $315,000 – $700,000+ (licensed) | ~7% + additional fees | License model; highly selective | Premium café, licensed retail |
| Dunkin | $40,000 – $90,000 | $437,500 – $1.8 million | 5.9% of gross sales | Open to qualified investors | High-volume QSR model |
| Biggby Coffee | $20,000 | $276,000 – $439,000 | 6% | Open to public applicants | Café and drive-thru option |
Dutch Bros offers a strong brand and streamlined operations, but its internal-only ownership model limits access. On the other hand, Dunkin and Biggby present more traditional franchise paths with broader availability. Starbucks, while globally dominant, operates on a strict licensing model that offers even less accessibility than Dutch Bros.
Choosing the right fit depends on your goals, budget, and how much control you want to have versus how much support you’re looking for.
Conclusion
Dutch Bros isn’t your typical franchise opportunity, it is a closed-door model built on loyalty, culture, and proven commitment. While it may not be accessible to everyone, it sets the standard for what a purpose-driven, profitable coffee business can look like.
For entrepreneurs who value energy, systems, and community, there’s a lot to learn, and a lot you can build inside Dutch Bros or beyond.
Here are ways Entrepreneurs.ng can help you start or scale your business:
- Register your business today with Entrepreneurs.ng’s Business Registration Services.
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FAQs About Dutch Bros Franchise Cost and Startup Guide
How much are Dutch Bros franchises?
The initial investment to open a Dutch Bros franchise typically ranges from $150,000 to over $500,000. This includes the franchise fee, buildout, equipment, inventory, and other setup costs.
Why did Dutch Bros stop franchising?
Dutch Bros stopped offering traditional franchise opportunities in 2008 to protect its brand, maintain consistent customer experiences, and preserve its unique culture. Since then, the company has shifted to a company-owned model, allowing only internal team members who’ve risen through the ranks to become franchise operators.
Is owning a Dutch Bros profitable?
Yes, owning a Dutch Bros franchise can be highly profitable. Annual revenues often range from $1 million to $1.5 million or more per location. Its efficient drive-thru model, loyal customer base, and fast service give it a strong edge in the competitive coffee space. Profitability, of course, depends on location, management, and operating costs.
Who owns Dutch Bros franchises?
Currently, Dutch Bros franchises are owned exclusively by individuals who started within the company. Only long-serving employees, such as Broistas, shift leads, or store managers, who demonstrate leadership and alignment with the brand, can become franchisees. The broader network is now operated through company-owned or legacy franchised stores.
Can I open a Dutch Bros franchise if I’m not already an employee?
No. As of 2025, Dutch Bros only offers franchise opportunities to internal candidates who have risen through the company. External applicants are not eligible.
How much does it cost to open a Dutch Bros franchise?
The total initial investment typically ranges from $150,000 to $500,000+, including franchise fees, equipment, construction, and inventory.
What are the ongoing royalty and marketing fees?
Franchisees pay a 5% royalty fee on gross sales and a 2% marketing fee, which supports brand-wide campaigns and operational support.
How long does it take to open a Dutch Bros location?
Once approved, the process, from site selection to grand opening, can take six months to a year, depending on permits, buildout, and training.
Are there similar franchises that are easier to join?
Yes. Franchises like Dunkin, Biggby Coffee, and licensed opportunities with Starbucks offer more accessible ownership models and are open to the general public.
Does Dutch Bros help with location selection and training?
Absolutely. Approved candidates receive full support from the Dutch Bros team, including training, site approval, store design, and operational setup.
