Dairy Queen Franchise Review

By lexutor Apr 24, 2022

Dairy Queen Franchise Review

Dairy Queen is a popular name making various treats products especially from the soft ice cream which is relished by all. You will generally find a franchise of the same in the shopping Malls, fuel centers, busy market areas, office building and also in other places where huge footprints fall everyday. The company has spread its business in 5900 locations in U.S. and is also serving in 22 other foreign countries.

Background Of Dairy Queen Franchise

The founder of Dairy Queen Mr. J.F. McCullough started his business in the year 1940. He believed that when the ice creams will taste even better if it is soft rather than frozen solid. He invented a new recipe of making soft ice cream and began selling the product with his son Alex. To sell this new treat item both they tried to convinced one of their customers for an introductory sale. Surprisingly, when the sale started the number of customers stood up to 1600 and everyone loved the delicious treat. Inspired by this amazing success, McCullough opened his first store in Joliet on 22nd June 1940. Initially it sold two or three types soft ice cream such as cones, quarts and take-home pints and gradually it started selling a variety of products like banana splits, Dilly bars and many more. As the business expanded Dairy Queen stepped into franchising which began from 1944. Today the company is also selling various fast food items like hot dogs, hamburgers, chicken strips, DQ Orange Julius etc.

Excellent Franchise Offers

The Dairy Queen offers three different types of franchise of its products. Among them the DQ grill & Chill is the largest one which is essentially a fast serve restaurant with the facility of comfortable indoor seating arrangements. It offers items like soft-serve, drinks and other fast foods. The Limited Brazier is smaller than the former one and sells only soft ice creams and some fast foods products. For DQ treat Center stores the franchisee should sign an agreement with the DQ Orange Julius and is allowed to sell only the soft treat and Orange Julius items.

Cost And Fees For Buying The Franchise

The total investment cost for setting up a DQ franchise may vary from $372,802 to $1,771,860. The ongoing royalty fee is 4 to 5% and that the franchise fee ranges between $25,000 and $35,000. The company has a variable term of agreement which can be renewed from time to time. The amount of net worth and the cash liquidity requirement for the franchise should be $750,000 and $400,000 respectively. Financial assistance on startup and equipment costs is provided by the company in case of third party franchise type. However, no assistance is offered for inventory, or payroll cost or for the cost of accounts receivable.

Exclusive Training and Support

Currently the company is offering four major training programs these are Management Training Readiness Assessment (MTRA), SERVESAFE Certification, American DQ Corporation’s Training Program and Cake Decorating Certification Course. It also offers exclusive ongoing support on evaluating the field operations, toll free phone lines, great openings, frequent meetings etc. Beside this, marketing support on national media, co operative ads and support for promoting local programs will also help the franchisee to run the business successfully.

By lexutor

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