Dairy Queen is an American quick-service restaurant that is well known for its frozen treats. Founded in 1940 in Minnesota, Dairy Queen has grown into an international brand, with over 7,150 stores around the world today.

Stepping into the food service industry – and more specifically the quick-service restaurant industry and specialty ice cream industry – can be a daunting task, considering the significant start-up costs and the increasingly competitive nature of the industry. This video will break down the Financial Disclosure Document for Dairy Queen and provide all the information that prospective franchisees should know before making an investment decision.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Dairy Queen Franchise: Growing Despite Payback Period (2022)

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information: https://www.vettedbiz.com/franchise-search/

00:00 Introduction
00:39 Types of Franchises
01:13 American Grill and Chill Restaurants Costs
02:16 Training Program
02:25 Main Fees
02:47 Increase in the Number of Stores
03:08 Time to Recoup the Investment
04:27 Conclusion

#DairyQueenFranchise #VettedBiz

Dairy Queen franchises all of its restaurants in the United States.

The restaurant offers three types of franchises:

Dairy Queen Grill and Chill– a standard restaurant with a full menu
Dairy Queen Treat– generally smaller in size and offers a limited menu
Texas DQ Restaurant- contains a “Texas Country Food” menu
As of December 2021, there are 1,952 Grill and Chill locations, 828 Treat locations, and 586 Texas-style restaurants in the United States. Internationally, Dairy Queen has around 700 stores in Canada and another 2,157 international locations. This article will focus solely on the American Grill and Chill restaurants.

THE QUICK-SERVICE FOOD INDUSTRY AND SPECIALTY ICE CREAM TREAT INDUSTRY ARE TWO WELL-ESTABLISHED AND HIGHLY COMPETITIVE INDUSTRIES IN AMERICA.

Dairy Queen franchises compete with nationally established chain stores, such as Burger King, Baskin Robbins, and McDonald’s, as well as local stores and independent restaurants.

The estimated initial investment for a Dairy Queen Grill and Chill franchise is from $1,461,200 to $2,426,990.

A full breakdown of the costs is shown below. The estimates do not include the cost of land. Note that an initial, non-refundable franchise fee of $45,000 is due at signing the Franchise Agreement. Additionally, note that a substantial portion of the investment cost stems from Building, Construction, and Leasehold Improvements and Equipment costs, which together is estimated to cost anywhere from $1,300,000 to $2,000,000. Together, these two costs account for over 80% of the estimated initial investment cost. However, these.

Certain requirements must be met to own a Dairy Queen Franchise.

The Dairy Queen Franchise must be operated in compliance with the Franchise Agreement. Dairy Queen will also set standards that must be followed. These include rules delineating what proprietary items may be sold, restrictions on store build-out, computer software, and supplier and product approval.

Additionally, prospective franchisees must undergo a Dairy Queen training program before starting operations. The training program consists of 32 hours of classroom instruction and 245 hours of on the job training

The main fees associated with owning a DQ franchise are as follows:

A 4% licensing fee on monthly gross sales, and
A 5-6% sales promotion program fee on monthly gross sales.
Additional minor fees, such as a Renewal Fee, Operational Program Fee, and Additional Training fees, vary depending on location and circumstances.

Dairy Queen has seen net growth in the year-over-year change in the number of stores since 2019. Few quick-service restaurants grew during the COVID-19 pandemics.

The following table reports the average annual gross sales among Dairy Queen Grill and Chill restaurants that have opened since 2017. In the most recent year of data, 2021, the average Dairy Queen under these conditions reported annual gross sales of $1,427,766. As the table shows, average gross sales for these franchises have increased year over year since 2018, even though the coronavirus pandemic.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Dairy Queen Franchise: Growing Despite Payback Period (2022)

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information: https://www.vettedbiz.com/franchise-search/

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