Dairy Queen Franchise Costs, Fees & FDD

Year Business Began: 1940

Franchising Since: 1944

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 7,635

Franchise Description: American Dairy Queen Corporation (ADQ) is the franchisor. 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. The franchisor also offer franchises for its A DQ Treat restaurant brand under a different FDD.
Training Overview: There are currently three required components to initial training:
1. The Management Training Readiness Assessment (MTRA)
2. SERVSAFE certification
3. ADQ’s training program (three phases): Phase 1: Product and Equipment Training; Phase 2: Service, Management, and Financial Basics Training; Phase 3, People, PRIDE and Profit Training

The franchise’s designated manager and two assistant managers are required attendees for the three components. 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. The franchisor’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.

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.

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.

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.

Financial Assistance: Although they may have done so in the past, the franchisor and its affiliates generally do not offer financing arrangements or similar assistance to franchisees. Neither the franchisor nor its affiliates finance any part of the initial franchise fee, or the MultiTRA trade area reservation fee. Neither the franchisor nor its affiliates will offer site acquisition, equipment or leasehold financing services to franchisees for the establishment of their franchised business. Franchisees must obtain necessary financing through third parties. The franchisor periodically arranges with third party finance companies or banks to make financing programs available to franchisees. There is no assurance that financing will be offered in any particular instance.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$45,000	$45,000
ALTA Survey and/or Site Investigation Report (SIR)	$0	$5,000
Initial Training Fees and Costs	$1,200	$12,600
Travel And Living Expenses for Training Programs	$23,000	$42,950
Building Construction and Leasehold Improvements	$800,000	$1,400,000
Construction Consultation Services	$0	$7,500
Building Plans, Design Intent Plans and Architectural Seal	$15,000	$60,000
Equipment (includes signs and point-of-sale systems)	$550,000	$700,000
Training Inventory	$6,000	$12,000
Opening Inventory	$20,000	$35,000
Utility Deposits, Business Licenses and Government Charges	$4,000	$17,000
Attorneys’ Fees	$1,000	$8,000
Additional Funds (3 Months)	$51,000	$198,000
ESTIMATED TOTAL	$1,516,200	$2,543,050

Other Fees

Type of Fee	Amount
Continuing License Fee	4% of gross sales.
Sales Promotion Program Fee	5% to 6% of gross sales.
Transfer Fee	$6,000
Renewal Fee	$22,500
Audit and Recordkeeping Costs	The franchisee’s contractual percentage continuing license fees and percentage sales promotion program fees times the amount of understated gross sales, plus any other amounts owed to the franchisor.
Termination Fee	One of the following: (1) Two times the continuing license fee due for the last 12 months of active operations; (2) If the location did not operate for a full 12 months, 24 times the average monthly continuing license fee when location was open; or (3) If less than 24 months remain on the franchise agreement, the number of months remaining times the average monthly continuing license fees due for the last 12 months of active operations.
Interest Expenses	18% per annum or at maximum rate permitted by governing law.
Late Fees	$50 per delinquent report or payment.
Additional Training Fees	Will vary based on circumstances.
Gift Card Program Fees	Currently, 3% of total gift card redemptions.
Costs and Attorneys’ Fees	Will vary under circumstances.
Training Materials	$150-$500
Training Cancellation or Trainee Substitution Fee	$100-$1,000

The above information has been compiled from the FDD of Dairy Queen Chill & Grill. Year of FDD: 2025.

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