Dairy Queen Franchise Cost, Fee and Profit Opportunities

DAIRY QUEEN Franchise Startup Cost, Profit Margin, Revenue and Locations

Dairy Queen, which is now most of the times known as DQ, can be considered to be one of America’s most iconic fast-serve restaurants. The company built its reputation on the popular soft-served ice cream they manufacture. In some few years ago, the company diversified into a full menu of awesome restaurants delights, such as burgers, sandwiches, chicken strips and then fries.

They have been able to gather great success over the years through great service delivery and innovations of new dishes to their customers delight. This has made them so popular that a lot of entrepreneurs now seek the information on how much is a Dairy Queen Franchise?

FRANCHISE INFORMATION ABOUT DAIRY QUEEN

When J.F McCullogh was experimenting on a new recipe for a new frozen dairy item, his belief was that ice cream would taste better if it was soft and served directly fresh from the freezer and not when frozen solid. When he perfected the recipe, himself and his son, Alex, were able to convince one of their numerous customers to assist with introductory sales of the new innovation: THE SOFT ICE-CREAM.

It was an instant success as about 1600 ice cream lovers showed up to try it out. Following up on the initial success of the demo sales, the McCulloghs opened their first Dairy Queen store in the year 1940 in Illinois.

In the 1950s, some of their stores began to serve hot food items. Presently all Dairy Queen stores have a wide menus which include hamburgers, hot dogs, chicken strips and a whole lots more.

WHAT IS THE COST OF A DAIRY QUEEN FRANCHISE?

As an entrepreneur and you are interested in buying into the Dairy Queen Franchise opportunity, you will need to choose from the concept that you wish to identify with. There are choices ranging from DQ Grill & Chill to the DQ Orange Julius Treat Center. You will also need to pick out a location and then forward an application to the company. But before that you will need to acquaint yourself with the cost of a Dairy Queen Franchise. This will surely set you back some few bucks, but you will surely be encouraged as it is lucrative dealing with DQ.

As a Dairy Queen Franchisee, you will be expected to have $400,000 as liquid assets and then $300,000 as cash equity. You will also need to have a net worth of $750,000 minimum. The total investment that will be needed to fully establish a Dairy Queen Franchise store will be in the range of $400,000 to $1,800,000. And we all understand the variation is dependent on the location that you choose to establish your store.

WHAT IS DAIRY QUEEN FRANCHISE FEE?

As it is with all franchises, you will be expected to make an Initial Dairy Queen Franchise Fee, which is between $25,000 to $35,000. You will also need to make a Royalty fee of about 4-5% of the gross revenue of your store to the company. An Ad fee of about 5-6% will also be required of you to pay to the company.

ARE THERE ANY DAIRY QUEEN TERMS OF AGREEMENT AND RENEWALS?

If you have been approved as a Dairy Queen Franchisee and operations have begun in your store. Be aware that the term of initial franchise agreement for the company is 20 years. Renewal will be for another additional term, which could be for a shorter period of 10 years.

WHAT ARE THE BENEFITS OF A DAIRY QUEEN FRANCHISE?

  1. As a franchisee with DQ, you will be afforded a training program before and after launch of your franchise. This will get you acquainted with the concepts of the company and guide you in following due process and standards of operation.
  2. Additional supports will be given to you as the franchisee through meetings, field evaluation, newsletters, purchasing cooperatives and then toll free phone line.
  3. You also will get a marketing support from the company, which will be provided through Co-op advertising, regional advertising, National media and ad slicks.
  4. There is also an opportunity for you as a Dairy Queen Franchisee to participate in local promotions. This will assist you to reach out to the customers within your immediate environment.

TYPES OF TRAINING OFFERED BY DAIRY QUEEN

As a Dairy Queen Franchisee, you will be expected to undergo these four trainings

  1. The Management Training Readiness Assessment
  2. The Dairy Queen Corporation’s training scheme. These are in 3 phases
  • Product & Equipment Training
  • Management and Systems Training
  • People, Pride and Profit training
  1. SERVSAFE certification
  2. Cake certification and decoration course

You will be expected to deploy the Franchisee’s Manager, which could be you or any other person, 2 assistant managers for the first 3 training components. And then only one person is expected to attend the cake certification course.

QUICK FACTS ABOUT DAIRY QUEEN FRANCHISE

  • The business was established in the year 1940
  • Dairy Queen Franchise began in the year 1944
  • Dairy Queen Franchise fee ranges between $25,000 to $35,000
  • Royalty fee is between 4-5%

 

UPDATED

Cost of Dairy Queen Franchise, Startup Requirements, Ownership Agreement – Are you interested in joining a successful franchising company? In this post I will be dealing on everything you need to know about Dairy Queen Franchise. So in case you’re considering joining a franchising company, you can consider or put this company into your list of consideration.

Dairy queen  have been franchising since 1944 which means that the have been the franchising business for 72 years. This business all started when a producer of ice cream J.F McCullough began experimenting with recipes for making frozen dairy product, he started this experiment based on his opinion that it is better to serve ice cream fresh from the freezer, and not allowed to be served frozen solid. After perfecting this experiment he and his son Alex convinced one customer to hold an introductory sale of the new soft ice cream and more than 1,600 people showed up to try it.

Dairy Queen was first opened in 1940, in Joliet, Illinois and that time served only soft ice cream. Over the years variety of ice cream treats have been added to the menu such as dilly bars and banana splits. Some diary queens began serving hot food items as at 1950.

Today, Dairy stores have hot dogs ,ham burgers, chicken strips on their menus. Though they started 192, they have expanded internationally namely Mexico, japan, middle east among other outlets . it has over 6000 outlets to its name an it is one of the largest and top ice cream chain globally. It is owned and operated by the Araneta group based in the Philippians.

Different kinds of diary queen products exist and they include

o Blizzard: this is the original creamy, smooth and thick combination of fruits and cookies goodness served upside down

o Moolatte : this the frozen blended coffee available in Matcha Green Tea, Mocha, Cappuccino, caramel, Double Fudge and French vanilla flavors.

o Banana Split Royal treat,

o Classics which include Vanilla, Double Coco Fudge, Strawberry, Caramel shakes, Cones, and sundae.

o Dilly Bars and Dairy Queen Sandwiches

o Cakes are also included which are perfect for any occasion shared with family.

Every franchise has its requirement and specifications which is done to maintain the standard that it has, to help maintain success and to ensure that customers are served effectively.

Dairy Queen Franchise has its own requirement which include:

1. The offer a single unit franchise and this business is counter typed meaning that the products are sold from a counter.

2. It also require the store be located in office buildings, restaurant fronts, shopping centers, airports, bus of train terminals, and other locations that have high foot traffic counts.

3. It requires that each location must feature warm, welcoming, décor in free standing facilities

4. The franchisee should have a good food service management experience.

There are supports franchisees receive from the franchisors that will help them in the establishment this business.

This is one benefit that I personally find interesting because not all franchises come with such.
Some of which include

o First they run a training program for their franchisee which is available at the Dairy Queen headquarters and this training is conducted for three weeks. Afterwards other required trainings are conducted at the franchisee’s location

o The offer ongoing support through newspaper advertisements, help organize meets at the opening of the franchisee’s store, they also support during the grand opening

o Furthermore they offer marketing support, they handle advertisement, national media, handbills, regional advertising

All these is done to support and also as marketing strategies to help build a customer line for the franchisee.

The concepts of this business are:

o Dairy Queen offers two primary concepts available for franchising which are the DQ grill and the chill restaurant which is the part that serves burgers, salads as well as DQ frozen treats.

o Despite the inclusion of the restaurant into the business, DQ by all means preserves its heritage which is legendary I must admit. It offers a full menu of hot dishes and still serves the original frozen treat.

o The size of a typical DQ Grill and Chill restaurant is between 1,886 and 2,612 square feet the good thing is that the land may either be purchased or leased.

o The minimum net worth requirement to own a DQ Grill and Chill franchise is $750,000. With liquid assets of $400,000. The franchisee must be able to inject at least $300,000 in cash equity.

Diary Queen evaluates the background, work experiences, and financial capabilities of prospective franchisees because it gives preference to prospects with food or business experience.

I hope with these information you can be able to consider your options if you have interest in picking a franchise.

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