Three Dog Bakery Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

41
+
17%
17%
Investment required

?

$181,000 - $314,000
Revenue (AUV)

?

$502,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$40,000
Royalty fees

?

5.50%
+
1% + Up to 3%
Operating Profit

?

n.a.

Pro
Franchisees

?

41
+
17%
17%
Investment required

?

$181,000 - $314,000
Franchise fee

?

$40,000
Royalty fees

?

5.50%
+
1% + Up to 3%
Revenue (AUV)

?

$502,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Three Dog Bakery: Redefining Canine Cuisine with Gourmet Treats

Three Dog Bakery was launched in 1989 in Kansas City, Missouri, becoming the first bakery in the world to focus solely on crafting baked goods for dogs. It was founded by Dan Dye and Mark Beckloff, who were inspired by their rescue pup, Gracie, whose dietary sensitivities sparked their search for natural, healthy alternatives.

Their solution was to bake their own treats using simple, wholesome ingredients—a decision that soon blossomed into a unique pet-centric business. What started in their kitchen quickly grew into a beloved destination for dog lovers.

Franchising began in 2007, and today, Three Dog Bakery boasts more than 40 stores across the U.S. Each location features a menu of premium, human-grade baked goods for dogs, from cookies and pastries to celebratory cakes. These treats are designed with both nutrition and flavor in mind, reflecting the company's dedication to canine wellness.

The brand stands out in the pet industry by prioritizing real ingredients and actively engaging with pet-loving communities. Its focus on pet health and the increasing trend of treating pets like family continue to set Three Dog Bakery apart from traditional pet food retailers.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

41

+
17%
17%
No growth
New

$40,000

$181,000

-

$314,000

n.a.

$502,000

Pro

n.a.

Pro

n.a.

Pro

Pets

Training

Three Dog Bakery provides its franchisees with multiple forms of training to ensure successful operation and management of their Bakery locations. These training programs include the following:

  1. Initial Training Program
    This is mandatory and must be completed before the Bakery opens. It includes approximately 96 hours of instruction over 12 days, conducted in various locations around Kansas City, Missouri. The training covers bakery operations, equipment use, product preparation, customer service, marketing and sales strategies, cost control methods, and more.
  2. On-Site Training (Part of Initial Training)
    Held at the franchisee’s Bakery location, this segment spans around 64 hours over 5 to 6 days. It supports hands-on learning just before and during the store opening.
  3. Supplemental and Refresher Training
    During the franchise term, the Franchisor may mandate or offer additional training programs to update or reinforce operational practices. These are scheduled by the Franchisor and may involve fees.
  4. Training for New Managers or Replacements
    Any new Designated Manager or replacement must also attend and satisfactorily complete the initial training. Training for additional personnel beyond the first two individuals will incur extra fees.
  5. Employee Training Managed by Franchisee
    While the Franchisor provides guidance, the franchisee is responsible for implementing and maintaining an internal training program that meets the Franchisor’s standards. This includes proper documentation and ensures employees are not considered Franchisor’s employees.

Territory Protection

Three Dog Bakery provides franchisees with a Protected Territory as part of the franchise agreement. This territory is specifically outlined and agreed upon in Exhibit A of the contract, and its size and shape depend on factors like demographics and commercial development.

Within this area, the franchisor agrees not to open another Bakery under the same brand, as long as the franchisee remains in compliance with the agreement. However, this territorial protection comes with limitations.

Three Dog Bakery retains the right to operate or authorize others to operate in "Non-Traditional Sites" such as malls, airports, or military bases, even within a franchisee's Protected Territory. Additionally, the franchisor may still distribute products through alternative channels like online sales or retail outlets without compensating the franchisee.

Number of units

2023
Franchised units

35

37

41

Company-owned units

2

3

2

Total units

37

40

43

Competitors

Waggles Puppy Boutique

Investment required
$341,000
-
$678,000
Franchisees
0
+
n.a.
n.a.

Salty Paws

Investment required
$99,000
-
$176,000
Franchisees
+
n.a.
n.a.

Petland

Investment required
$313,000
-
$1,078,000
Franchisees
67
+
-11%
-11%

Pet Supplies Plus

Investment required
$498,000
-
$1,979,000
Franchisees
485
+
30%
30%

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