About Three Dog Bakery Franchise
Three Dog Bakery is a pet retail franchise specializing in fresh baked, personalized dog treats including cakes, muffins, pastries, and novelty items baked in store daily, along with dog food, cookies, biscuits, training treats, cat treats, and ancillary products like bowls, leashes, and collars.
Franchising since 2014 under TDB Holdings, LLC, the brand offers a unique pet retail experience built around the in store bakery concept.
The initial franchise fee is $40,000.
Three Dog Bakery Franchise Cost & Fees
Minimum Investment
$286K
Average Investment
$345K
Maximum Investment
$405K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of total Gross Sales | National brand fund |
| Total Investment Range | $285,872 – $404,959 | Includes build-out, inventory, working capital |
The investment range of $286K–$405K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Sales) and marketing fee (Up to 3% of total Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Real Estate / Rent Deposit | $0 | $7,000 |
| Architect Permits, Leasehold Improvements | $73,000 | $90,777 |
| Utility and Miscellaneous Security Deposits | $2,000 | $4,000 |
| Furniture, Fixtures, Lighting Fixtures, and Supplies | $58,785 | $75,619 |
| POS and CRM System | $3,587 | $7,563 |
| Opening Inventory | $48,000 | $55,000 |
| 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 | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current Initial Franchise Fee |
| Renewal Fee | $2,500 |
| Technology Fee | If required, our then-current fee |
| Audit Fee | If audit reveals underpayment of 2% or more, you must reimburse us for its audit costs |
| Local Advertising Requirement | 1% of total Gross Sales, which we may increase up to 3% |
| Point of Sale Software Fees | Then-current fee. Current monthly cost ranges between $199.00 to $521.00 plus a onetime Setup Fee and Hardware costs ranging between $2,973.00 to $5,747.00 |
| Legal Fees/Indemnification | Actual costs of suit, attorneys’ and accountants’ fees incurred by us. |
| Supplemental and Refresher Training | Up to $500 per day for up to 2 people. Additionally, we may require you to reimburse our out-of-pocket expenses. |
| Management Services | Up to 8% of Gross Sales |
| Site Selection Fee | $1,000 per visit |
| Relocation Fee | $1,000 |
| Late Payment, Insufficient Fund or Dishonored Check Fees | $100 per occurrence |
| Insurance | Will vary according to circumstance. |
| Additional Training Fee | Our then-current training tuition fee, which is currently $500 per additional person per day |
| Late Report Fee | $100 per occurrence and $100 per week |
| Late Payment Fee | 1.5% of the payment due |
| Interest on Late Payments | 1.5% |
| Insufficient Funds Fee | 1.5% of the amount of the insufficient funds check, draft/wire transfer, paid monthly for so long as the insufficient payment remains outstanding |
| Commission if We Find Transferee | 10% commission on the gross transfer price (excluding the price of real property) |
| Maintenance and Renovation | Actual cost of ongoing maintenance and renovation |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 162 hours (96 hours for Part 1 over 12 days, 64 hours for Part 2 over 5-6 days) |
| Classroom Training | 22 |
| On-the-Job Training | 140 |
| Training Location | Kansas City, Missouri (corporate headquarters) and Your Bakery |
| Additional Training | The franchisor may provide supplemental and refresher training programs during the term of the Franchise Agreement, for which the franchisee will pay the then-current training fee. No additional fee is charged for the initial training program for up to two (2) people; additional personnel will incur a $500 per person per day fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | would not generally exceed a 5-mile radius |
| Description | The size and shape of this Protected Territory are determined at the time of the execution of the Franchise Agreement. The size and shape of the Protected Territory are separately negotiated for each Franchise Agreement, and vary depending upon demographics, population, and commercial development in the area of your Bakery, but would not generally exceed a 5-mile radius. Your Protected Territory cannot be modified except by mutual written agreement signed by both parties. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | additional 5-year term |
| Renewal Fee | $2,500 |
| Renewal Conditions | No material default, proper notice of intent to renew, sign new (then-current) agreement (which may contain materially different terms), sign release, give satisfactory evidence that you have the right to remain in possession of the leased premises, pay all debts owed to us, pay renewal fee of $2,500. |
| Transfer Fee | one-half of the current initial fee |
| Transfer Conditions | The purchaser must have qualified to be a franchisee of Three Dog, must assume all obligations under the Franchise Agreement, and must complete training. In addition, the seller must sign a general release of all claims against us and must pay a transfer fee (the amount of which can vary but will not exceed one-half of the current initial fee). |
| Termination for Cause | The franchisor can terminate if the franchisee defaults or if certain fundamental assumptions are not met. Immediate termination reasons include loss of lease, failure to operate for more than 72 consecutive hours, material misrepresentations on the application, failure to report sales in good faith, unauthorized transfers, or insolvency/bankruptcy. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For a period of 2 years after termination or expiration: (i) no involvement in a Competitive Business at the Location, within 50 miles of the location, or within 50 miles of any other Bakery or Protected Territory in operation or under construction; and (ii) no interference with the franchisor’s business relationships. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must dedicate your personal, full-time attention and best efforts to the management and operation of the Bakery, or you may designate a Designated Manager to manage daily operations with our approval. Both you and your Designated Manager will be required to complete the Initial Training Program to our satisfaction. If you operate more than one Bakery, you must have a properly trained Designated Manager at each Bakery you own and operate. If the Bakery is not being properly managed by you or your Designated Manager, we may appoint an interim manager to operate your Bakery on your behalf and charge a reasonable fee. |
| Required Suppliers | You must purchase all or nearly all of the inventory or supplies that are necessary to operate your business from the franchisor, its affiliates, or suppliers that the franchisor designates. The franchisor is the only Preferred Supplier for Company Products and has Preferred Suppliers for cabinetry, POS system software, furnishings, layout, design, décor, fixtures, equipment, furniture, and signage. The franchisor may also develop proprietary products/software that must be purchased from them or their designated suppliers. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. The franchisor reserves the right to require you to purchase only ingredients, pre-made items and/or supplies from them or other approved/designated suppliers. The franchisor may also develop certain proprietary products which you must purchase from them. |
| Franchisor Revenue from Suppliers | 0 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any of its affiliates offers direct or indirect financing of any of your obligations. The franchisor does not guarantee your note, lease or obligations. |
Three Dog Bakery Franchise Earnings — Item 19
Average Revenue
$539K
Median Revenue
$451K
Revenue Range
$154K – $1.0M
Sample Size
33 units
Past financial performance does not guarantee future results. Individual results will vary.
Three Dog Bakery Litigation & Risk Flags
Clean Litigation RecordThree Dog Bakery has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Three Dog Bakery System Growth
Total Units
40
Franchised
37
Company-Owned
3
Three Dog Bakery currently operates 37 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 5 | 1 | 44 |
| 2020 | 0 | 7 | 37 |
| 2021 | 5 | 2 | 40 |
Transfers: 3 | Closures: 10
State Registrations
Registered in 4 states: FL, IN, MI, SD
Franchisor Financials (Item 21)
Revenue
$28.9M
Net Income
$1.2M
Total Assets
$8.5M
Audited by CliftonLarsonAllen LLP for year ending December 31.
Three Dog Bakery Franchise — FAQ
The total investment to open a Three Dog Bakery franchise ranges from $285,872 to $404,959, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Three Dog Bakery charges a royalty fee of 5.5% of Gross Sales of gross sales, plus a Up to 3% of total Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Three Dog Bakery Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Three Dog Bakery to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Three Dog Bakery franchise owners report average revenue of $539K and median revenue of $451K. This is based on a sample of 33 units. Past performance does not guarantee future results.
Three Dog Bakery has been franchising since 2014. The FDD shows an investment range of $285,872-$404,959, a 5.5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $285,872 to $404,959 depending on location size and market. A minimum of $50,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Three Dog Bakery and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Three Dog Bakery or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com