If you`re looking to start a Dutch Bros franchise, it`s important to understand the franchise agreement that comes with it. The franchise agreement outlines the terms and conditions of the franchisor-franchisee relationship and outlines what is expected of both parties. Here`s what you need to know about the Dutch Bros franchise agreement:
Initial Fees and Investment
To become a Dutch Bros franchisee, you`ll need to pay an initial franchise fee, which is currently $40,000. You`ll also be responsible for any other startup costs associated with opening a new location, which can range from $250,000 to $550,000 depending on the size and location of the store. Additionally, Dutch Bros charges a 5% royalty fee and a 2% national advertising fee on gross sales.
Site Selection and Build-Out
Dutch Bros provides franchisees with a site selection manual to help them choose a location for their store. The franchisor will also provide assistance with the design and construction of the store, including a prototype design and layout. However, franchisees are responsible for the cost of building out the store, which can vary depending on the location and size of the store.
Training and Support
Dutch Bros provides its franchisees with a comprehensive training program, which includes a two-week training program at the company`s headquarters in Grants Pass, Oregon. The training covers all aspects of running a Dutch Bros store, from preparing the products to managing the day-to-day operations. Franchisees also receive ongoing support from the franchisor, including site visits, ongoing training, and access to a network of other franchisees for support and advice.
Term and Termination
The Dutch Bros franchise agreement has an initial term of 10 years, with an option to renew for an additional 10 years. However, the franchisor has the right to terminate the agreement if the franchisee breaches any of the terms and conditions outlined in the agreement. Franchisees must also comply with all state and federal regulations and follow the franchisor`s operating manual.
Becoming a Dutch Bros franchisee can be a lucrative and rewarding opportunity for the right person. However, it`s important to understand the franchise agreement and the expectations that come with it before making a commitment. If you`re considering a Dutch Bros franchise, take the time to review the agreement, ask questions, and make an informed decision that is right for you.