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Wednesday
May122010

Dairy Queen Franchise

Quick-service restaurant serving ice cream, hot dogs, hamburgers and chicken

Ice cream manufacturer JF McCullough was experimenting with a recipe for a new frozen dairy product, stemming from his belief that ice cream tasted better when it was soft and served fresh from the freezer, not frozen solid. With his recipe perfected, McCullough and his son Alex approached one of their customers about holding an introductory sale of the new soft ice cream. At the first sale, more than 1,600 people lined up to try the new ice cream.

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.

In the 1950s, some Dairy Queens began serving hot food items. Today, stores systemwide have menus that include hot dogs, hamburgers and chicken strips through Dairy Queen's Brazier concept. Franchise business owners can operate a Dairy Queen with or without a Brazier. The company also offers its Treat Center concept, a store that sells items from the three franchise companies it owns--Dairy Queen, Orange Julius and Karmelkorn.

Start-up Costs & Franchises Fees

What is the total cost to open a Dairy Queen Franchises?

Total Cost: $700,000 USD -$1,300,000 USD
Total Franchise Fees: $20,000 USD -$35,000 USD
Ongoing Royalty Fees: 4-5%
Ongoing Advertising Fees: Not Available
Term of Agreement: Varies

Contact Information for Dairy Queen

Dairy Queen
P.O. Box 39286
Minneapolis, MN
55439-0286

Phone Number: (952)830-0200
Toll Free: (800)679-6556
Fax Number: (952)830-0450

Franchise Homepage:

Dairy Queen In the Press

No results at this time.

Historical Expansion

In what year did Dairy Queen begin operations? 1940
When did Dairy Queen begin selling franchises? 1944

Year United States Canada International Corporate
2004 4803 570 327 65
2003 4839 564 326 66
2002 4912 546 281 65
2001 4947 544 313 62
2000 5042 538 333 59

Future Expansion

Countries of Interest:

Franchise Financing Information

Cost In House Financing Available? 3rd Party Financing Available?
Franchise Fee No No
Initial Start-up Capital No No
Plant, Property, and Equipment No No
Inventory No No
Accounts Receivable No No
Payroll No No

Training & Support

Support
In the Pressletter, Meetings, Toll free phone number, Grand opening support, Field support and site evaluation, Purchasing cooperatives
Marketing
Cooperative advertising, Ad slicks, National media, Regional advertising support

Franchise Operation Restrictions

International franchise business owners required to buy multiple units/master licenses

Number of employees needed to run franchised unit: 20 - 40

Absentee ownership of franchise is allowed.

Qualifications & Business Experience

Business Experience:
  • Industry experience
  • General business experience
  • Franchise Analyzer Professional's Inside Information

    Can you buy this franchise for no money down? Yes
    What key terms in the franchise agreement can be negotiated? Cross-default provisions, arbitration clause, personal guarantee, default cure periods, non-compete agreement, favorable valuations for corporate buyout
    Can you negotiate lower royalties during start-up? Yes
    Can you purchase multiple franchises for a discounted franchise fee? Yes
    Can you receive lower advertising fees? Yes
    Will I know when the franchise break even? Yes
    Will my personal assets including my home be safe in case my franchise business fails? Yes
    Please note: You must download a free copy of Franchise Analyzer Professional to receive these benefits and so much more. Click here to download your FREE copy now.