what is the franchise fee for dairy queen

Don’t Overlook These 19 Important Franchise Fees

• 1. Initial Franchise Fee: $25,000 You must pay American Dairy Queen (ADQ) a $25,000 initial franchise fee for a single franchise. ...
• 2. Management Training Readiness Assessment Fee: $185 for each training attendee ...
• 3. Other Fees and Payments Made to ADQ or Its Affiliates Prior to Opening: will vary under circumstances ...
• 4. Continuing License Fee: 5% of Gross Sales ...

Full Answer

How much does it cost to open a Dairy Queen franchise?

How Much It Cost to Open a Dairy Queen Franchise

• Initial franchise Fee - $35,000
• ALTA Survey - $5,000
• Initial Training Fees and Costs - $1,125 to $11,625
• Travel And Living Expenses for Training Programs - $23,000 to $38,500
• Building Construction and Leasehold Improvements - $550,000 to $900,000
• Construction Consultation Services - $7,500

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How much money does a Dairy Queen franchise make?

The franchise fee for a Dairy Queen restaurant is $25,000 to $35,000. The total estimated investment ranges from $382,000 to $1.8 million, with liquid cash available of $400,000. A 4-5% royalty fee on gross monthly receipts is paid to the company. Dairy Queen has reported revenue in excess of $2.5 billion. Dairy Queen Business Opportunities: Other Information

How much does Dairy Queen pay in Texas?

Tell us about you and get an estimated calculation of how much you should be earning and insight into your career options. How much does Dairy Queen - Food Preparation & Service in Texas pay? Average Dairy Queen hourly pay ranges from approximately $7.64 per hour for Server/Cashier to $17.32 per hour for Restaurant Manager.

How much do Dairy Queen retail jobs pay?

How much do Dairy Queen Stores employees Hourly make in the United States? Dairy Queen Stores pays an average hourly rate of $1,463 and hourly wages range from a low of $1,263 to a high of $1,684. Individual pay rates will, of course, vary depending on the job, department, location, as well as the individual skills and education of each employee.

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What is the royalty fee for Dairy Queen?

Dairy Queen Franchise Cost / Initial Investment / Income A 4-5% royalty fee on gross monthly receipts is paid to the company. Dairy Queen has reported revenue in excess of $2.5 billion.

What financing options does Dairy Queen have?

Dairy Queen does not offer financing.

How much does a Wendy's franchise cost?

$2,000,000 to $3,700,000The estimated total investment required to begin operation of a new restaurant normally ranges from $2,000,000 to $3,700,000. Will I be assigned an exclusive territory? Wendy's does not currently provide exclusive areas to franchisees. The franchise agreement is issued for the specific restaurant location only.

How much is franchise for McDonald's?

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.

Is Dairy Queen a good investment?

For owner-operated franchisee locations, the average annual profit is $194,000. For absentee managed franchisee locations, the average profit is $117,000. The average capital investment into the Dairy Queen franchise is $584,000 across all markets.

How much money does Dairy Queen make a year?

How much do Dairy Queen Franchises Make?Year20182019Percent of Restaurants Meeting or Exceeding the Average39%47%High Annual Gross Sales$3,725,266$2,753,016Median Annual Gross Sales$1,263,588$1,157,103Low Annual Gross Sales$637,260$549,4194 more rows•Jun 2, 2022

How much does a Taco Bell franchise cost?

Total cost: A standalone Taco Bell franchise location is estimated to cost between $1.2 million and $2.6 million, exclusive of land and lease costs. Initial investment: Initial investments will vary significantly based on your location and the type of restaurant.

How Much Is a Subway franchise?

How much is the franchisee fee? The initial franchise fee ranges from $10,000 - $15,000* (US dollars) depending on your country.

How much is a Starbucks franchise?

What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.

How much is a KFC franchise?

For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.

What is the most profitable franchise to own in 2022?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

What does a Pizza Hut franchise cost?

Pizza Hut has a franchise fee of $25,000 for a 20-year agreement, although the total initial investment ranges between $297,000 and $2,109,000. Additionally, franchisees must pay the company ongoing royalty fee of 6% on all sales, as well as an additional 3% to be applied toward national marketing efforts.

Is Dairy Queen ice cream unhealthy?

Dairy Queen's menu of traditional fast food favorites and its classic ice cream treats contains many high-calorie, high-fat, high-carb items with a lot of sugar. However, if you pay attention to portion size, it's possible to enjoy a lower-calorie snack or dessert.

How much does it cost for a Baskin Robbins franchise?

Baskin-Robbins Franchise / Initial Investment / Baskin-Robbins Franchise Income. The estimated initial investment required to open a Baskin-Robbins ice cream franchise is $94,350 to $402,200, including an initial franchise fee of $25,000.

Who owns Dairy Queen?

Berkshire HathawayInternational Dairy Queen, Inc.Dairy Queen/Parent organizations

What is the lowest calorie Blizzard at Dairy Queen?

Calories in Mini DQ Blizzards A mini Blizzard is the smallest you can get, so if you're trying to keep the calories low, this size is your friend.

What do you need to buy a Dairy Queen franchise?

Individuals interested in buying a Dairy Queen franchise should have a passion for the brand, and have the ability to lead, mentor and train a team. Successful franchisees also have strong financial management skills and knowledge of the real estate market.

How long has Dairy Queen been around?

For more than 70 years, Dairy Queen has developed customer loyalty and established a solid brand as a leading fast food chain.

How long is DQ training?

DQ offers industry-leading support for its franchisees in the areas of development, operations, marketing and more. New franchisees receive an intensive three week training session at the company's headquarters as well as on-site training pre- and post-opening. Ongoing training is also offered.

Why DQ?

For more than 70 years, Dairy Queen has developed customer loyalty and established a solid brand as a leading fast food chain. The burger franchise has worked to keep up with the times modernizing its menu and brand through both it's DQ Grill & Chill ® and DQ ® Orange Julius ® stores. There are still many major markets in the U.S. available to be developed.

What is a DQ franchise?

Franchise. Start your business! Dairy Queen, now often known as DQ, is one of America’s most iconic quick-serve restaurant brands. Dairy Queen built its reputation on its famous soft-serve ice cream, but long ago expanded to a full menu of restaurant delights, including burgers, chicken strips and sandwiches and fries.

When was Dairy Queen invented?

The Dairy Queen soft-serve ice cream formula was first developed in 1938 by John Fremont ‘Grandpa’ McCullough and his son Bradley, who convinced a friend, Sheb Noble, to offer the product in his ice cream store in Kankakee, Illinois.

What is the DQ dessert?

Still, starring on the DQ menu is its satisfying dessert treats, such as the Dilly Bar and Buster Bar, a variety of ice cream sundaes, and the world famous Blizzard, a yummy mix of ice cream shake with candy chunks.

What is a DQ Grill and Chill?

The DQ Grill & Chill restaurants are the flagship concept of Dairy Queen, which also owns the Orange Julius brand. Franchise agreements are available for both concepts. A DQ Grill & Chill franchise is an opportunity to own and operate an internationally loved brand. Each restaurant location features warm, welcoming décor in freestanding facilities, between 1,886 and 2,612 square feet. Franchisees should have prior retail or food service management experience. Franchise development is available in Alabama, Arkansas, California, Colorado, Florida, Louisiana, Maryland, Massachusetts, Mississippi, New York, North Carolina, Oklahoma, South Carolina, Tennessee, and Wyoming.

Who owns the Orange Julius brand?

Dairy Queen’s parent company, International Dairy Queen, Inc., also owns the Orange Julius and Karmelkorn brands. The name ‘Dairy Queen’ was the name the McCulloughs gave their soft-serve invention.

Is Dairy Queen a franchise?

Dairy Queen is listed in the Franchise Directory under the Food category. It's also listed in the section for Franchises Under $500,000 .

How Much Money can you Make with a Dairy Queen Franchise?

So you decided to drop just north of $1 million dollars on a new Dairy Queen location, but the big thing you are wondering is how much money you can expect to make? According to industry reports and the Dairy Queen FDD, the average sales for a Dairy Queen location are around $1,300,000. On that $1,300,000 in sales, the average EBITDA per location (pre-G&A) is about $180,000. This $180,000 in profit per store is before paying any administrative staff outside the stores or before paying interest on debt or any taxes. This is an EBITDA margin of just over 13%.

How much does it cost to open a dairy queen?

The estimated initial cost to start a Dairy Queen ranges between $1,091,025 to $1,849,625. Like many restaurant franchises, the largest part of this cost is attributable to construction of the restaurant and leasehold improvements. Here is how the costs break down:

What is the sales promotion fee at Dairy Queen?

The ongoing sales promotion program (advertising) fee is 5%-6%. This is due at the same time as royalty payments. Dairy Queen has the right to determine the percentage you must pay within the range, without regard to the sales promotion fees paid by other Dairy Queen restaurants. Dairy Queen must let you know 90 days in advance of any fee adjustment. Dairy Queen may also lower the sales promotion fee for stores such as airports and stadiums that charge admission or have a ticketed entrance.

How much cash does Dairy Queen need?

The current net worth requirement to become a Dairy Queen franchisee is a liquidity requirement of $400,000 with $300,000 in cash equity and a minimum net worth of $750,000.

When did Dairy Queen open?

Noble obliged and when he first offered soft-serve, he sold 1600 servings within two hours. Noble and McCullough went on to open the first Dairy Queen in 1940 in Joliet, Illinois. Almost immediately, the group began growing through franchising and had nearly 1,5000 stores by 1950.

Who invented dairy queen?

Dairy Queen is one of the oldest restaurant franchises around. The soft-serve formula was first developed in 1938 by John Freemont McCullough and was offered to Sherb Noble to offer soft-serve in his ice cream store in Illinois.

What is the continuing royalty fee for a restaurant?

The continuing royalty (licensing) fee paid to the franchisor is 4% of gross sales. This is due on or before the 10th day of each month for the previous month. Gross Sales means the total revenues and receipts from the sale of all products sold by the restaurant, whether paid for in cash, credit, gift card or otherwise for all products under any of the trademarks as well as other products, services and merchandise sold in the restaurant. This excludes sales taxes and gift card sales.

How do I get started with opening a Dairy Queen® franchise?

Simply fill out our request form or give us a call. We invite you to reach out to us or explore our website for more information about the steps to owning a Dairy Queen® franchise.

What kind of support can I expect from the Dairy Queen® brand?

Our franchise support team can help you through every step of the development process, from the first phone call to your grand opening. After that, we’ll continue to help you market your restaurant and grow your business. Learn more about how Dairy Queen® supports our franchisees .

Do I need previous franchising or restaurant experience to become a Dairy Queen® franchisee?

Excellent franchise candidates come from a wide variety of backgrounds including franchisees of (non-competitive) QSR brands and successful people from outside of the industry.

What is a DQ franchise?

Franchise Description: American Dairy Queen Corporation (ADQ), the franchisor, offers single unit and multiple unit franchises for the operation of DQ Grill & Chill restaurants at authorized locations. A DQ Grill & Chill restaurant is a quick service food restaurant with seating from which franchisees will sell the full line of approved soft-serve, treat, food and beverage menu items.

What are the obligations of a dairy queen?

Obligations and Restrictions: Franchisees are required to operate their Dairy Queen Chill & Grill location under their active and continuous supervision. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The franchisor requires franchisees to offer and sell only those goods and services that it has approved . In addition, franchisees may offer and sell these approved goods and services only from their restaurant. Franchisees must carry the required menu items that the franchisor designates for their business.

What is a franchisee's territory?

Territory Granted: When franchisees enter into a Franchise Agreement they are granted the right to operate a single restaurant at an authorized location that the franchisor has consented to in writing. Franchisees are not granted any minimum area or territory. The franchisor does not grant exclusive territories to any franchisee under the terms of a Franchise Agreement.

What are the requirements for a franchisee to attend a training program?

Prior to attending the franchisor’s training program, the required attendees must pass the MTRA, which is administered at a location designated by the franchisor. The MTRA measures leadership, customer service, decision-making, prioritizing and business math, and may be modified by the franchisor at any time. The required attendees must also have current SERVSAFE certification , which will only be recognized by the franchisor if received through a course that is part of or equivalent to the National Restaurant Association’s SERVSAFE program. ADQ’s training program is held at an approved certified DQ location, the franchisor’s classroom in Minneapolis, Minnesota or any other location the franchisor designates. The franchise’s controlling owner (as defined in the franchise agreement) must, at the franchisee’s expense, attend all meetings the franchisor holds or sponsors in their area or region including all DMA or other marketing area meetings, and all meetings relating to new products or product preparation procedures, new DQ system programs, new operational procedures or programs, training, restaurant management, financial management, sales or sales promotion, or similar topics.

How long is a franchise agreement?

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Renewal is for one additional term for the shorter of 10 years or the remaining term of the lease, if requirements are met.

What is a franchisee required to do?

The franchisor requires franchisees to offer and sell only those goods and services that it has approved.

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When did Dairy Queen open?

Based on that initial success, the McCulloughs opened the first Dairy Queen location in 1940 in Joliet, Illinois. The first stores sold only soft-serve ice cream--in sundaes, take-home pints and quarts, and cones--but over the years, a variety of ice cream treats were added to the menu, such as banana splits and Dilly Bars.

What is franchise fee?

What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor.

How long does a franchise last?

Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease.

Do franchisors have in-house financing?

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.