Thinking of investing in the Dairy Queen franchise (or DQ franchise)? Whether you’re drawn by the famous Blizzards, soft serve, or the fast-food menu, the DQ franchise offers a globally recognized brand with proven success. In this full guide, we’ll walk you through everything you need to know from investment, training, and support to revenue projections and requirements for opening a dq franchise.
Franchise Brand Details
| Founders: John Fremont McCullough |
| Founded year: 22 June 1940, Joliet, Illinois, United States |
| President: Troy Bader |
| Headquarters: Bloomington, Minnesota, US |
| Subsidiaries Company: American Dairy Queen; Dairy Queen Canada; Orange Julius |
| Number of locations: 4,455 (US domestic, 2018); 6,800 (global) |
What Is a Dairy Queen Franchise (DQ Franchise)?
A Dairy Queen franchise, also known as a DQ franchise, lets you operate a restaurant under the iconic Dairy Queen brand, famous for its soft‑serve ice cream, Blizzards, sundaes, fast food items, and more
The company uses a long-term franchise model with two main formats:
- DQ Grill & Chill (full-service restaurants with hot food and desserts)
- DQ Treat (smaller stores focusing on ice cream & treats only)
DQ Franchise Cost & Investment Details
Franchise Fee & Investment
| DQ Format | Franchise Fee | Total Investment Range |
|---|---|---|
| DQ Grill & Chill | $45,000 | $1,516,200 – $2,543,050 |
| DQ Treat | $25,000 | $549,100 – $1,604,700 |
Liquid Capital Required: $400,000
Net Worth Requirement: $750,000 for single-unit ownership
Expect startup costs to include real estate, build-out, equipment (freezers, ovens, POS systems), initial inventory, marketing, training, and working capital.
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Royalty & Advertising Fees (Ongoing)
As a Dairy Queen franchisee, here’s what you pay from gross sales:
- Royalty Fee: 4% (Grill & Chill) or ~5% (Treat)
- Advertising (Marketing) Fee: 5–6% of gross sales
- Additional fees: Renewal, training, and operations program fees. Term lengths vary by format, typically 20 years for U.S. agreements
Revenue & Profit Potential for DQ Franchise
- Average Annual Gross Sales (Grill & Chill): ~$1,355,000–$1,427,766
- Profit Margins: Typically 15–20%, which translates to $200,000–$285,000+ annual profit for well-run locations.
Based on median sales of $1.43M and 15% margin, payback period ~11–16 years depending on profits
Training & Support for Dairy Queen Franchisees
Franchisees receive high-quality support:
- Training: 32 hours classroom + ~245 hours hands‑on in operating stores.
- Site/real estate support, architectural assistance, training, and brand marketing from corporate teams.
- Marketing support: National and local campaigns, loyalty programs, materials, social media toolkits, and templates included .
- Opening support: Grand-opening planning, staffing, local promotions. Post‑opening regional and area management assistance continues .
DQ Franchise Footprint
- Over 4,100 U.S. stores and 7,700+ globally across 20+ countries.
- Growth markets include China (1,600+ stores), Middle East expansion underway in Saudi Arabia, Bahrain, Kuwait, Oman, Qatar.
- Founded in 1940 by John Fremont McCullough, Alex McCullough, and Sherb Noble, headquartered in Bloomington, Minnesota. Now a subsidiary of Berkshire Hathaway
DQ Franchise Operational Requirements
- Requires owner involvement—semi‑absentee ownership only in rare cases with strong management teams.
- Certified DQ managers (minimum 3 per unit) must complete training programs.
- Franchise term is 20 years, renewable. For international, 15-year terms are common with extension options.
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Reasons to Consider a DQ Franchise
- Iconic brand recognition with a mix of dessert and fast-food appeal.
- High average unit volume: strong annual sales, often above $1.3M.
- Diverse formats: choose between Grill & Chill versus Treat-only depending on investment.
- Full training & marketing support reduce execution risks.
- Well‑defined operations and proven systems globally, backed by Berkshire Hathaway.
Risks & Considerations
- Requires substantial investment (up to $2.5M), high capital thresholds
- Profit margins can be thin, especially for smaller Treat stores—some treat units only net 5–10% EBITDA.
- Competition from other QSR and dessert chains is high.
- Some franchisees have experienced tension over mandatory remodels or corporate policies during renewals or expansions
Final Thoughts on the Dairy Queen Franchise
The Dairy Queen franchise (DQ franchise) offers a tried-and-true path into food service with strong global branding, proven operations, and versatile formats. While the upfront investment is significant, the upside in revenue and support is equally substantial. For entrepreneurs with the required capital and drive, a DQ franchise could be a solid long-term business—serving up smiles, Blizzards, burgers, and steady returns.
Ready to start the conversation about owning a DQ franchise!
Frequently Asked Questions (FAQs) — Dairy Queen Franchise (DQ Franchise)
You can open a DQ Grill & Chill (full-menu, hot food plus desserts) or a DQ Treat (dessert-only, smaller footprint)
Investment ranges from $549K–$1.6M for Treat, or $1.5M–$2.5M+ for Grill & Chill. Franchise fees: $25K or $45K respectively.
Minimum net worth: $750,000; liquid capital: $400,000 (per unit). Requirements increase for multi-unit or international deals.
Average Grill & Chill unit revenue ~$1.36M (2021 FDD data). With 15–20% operating margin, profits range from $204K–$285K annually—Treat units generally earn less.
