Dairy Queen Franchise Information

A Dairy Queen franchise lets you serve ice cream treats and make a profit.

Owning and operating a Dairy Queen Grill and Chill restaurant is an expensive and time-consuming ordeal. The profitability of your Dairy Queen Franchise will be dependent on a variety of factors. Some of these will include your ability to control costs and build sales as well as manage the business. These factors and others will all affect the revenues and profits that your restaurant can generate. Before you make the decision to pursue a franchise agreement you should visit with existing franchisees to discuss sales, operating costs, and profitability according to International Dairy Queen Incorporated.

Dairy Queen Grill and Chill

The DQ Grill & Chill restaurant is the Dairy Queen Flagship concept. The restaurant offers the full line of DQ treats and a fresh food menu that includes hamburgers, hot dogs, chicken strip baskets, fries and other items.

The typical DQ Grill & Chill restaurant is a freestanding facility between 2,050 and 2,800 square feet. Raw land requirements are between 22,000 and 34,000 square feet. You can purchase or lease the land. Other locations such as strip center end-caps and travel centers are also acceptable for Grill & Chill restaurants.

General Requirements

You need to meet some basic requirements before Dairy Queen will allow you to purchase a franchise.

You must have prior ownership or significant retail or food service experience. You must submit a detailed management plan and you must possess the significant financial resources.

Financial Requirements

Owning a Dairy Queen franchise comes with large financial obligations. As of April 2010 the minimum net worth requirement for a potential franchisee is $750,000. Of that amount, $400,000 must be in the form of liquid assets with $300,000 for use as cash equity.

The initial and ongoing franchise fees include an initial franchise fee of $35,000, perpetual royalties in the amount of 4 percent of gross sales and 6 percent of gross sales for ongoing sales promotions.

Development Costs

Here are some of the estimated development costs associated with getting your Dairy Queen Grill and Chill franchise up and running as of April 2010. Keep in mind that these are only estimates and that your specific situation could vary.

If you choose a freestanding building, you have two choices. The first is the Dairy Queen Grill and Chill 2000. It is 2,168 square feet and seats 48 customers. Making the land site suitable for building could cost $175,000 to $270,000, actual construction of the building could cost $400,000 to $480,000 and the equipment required to run the restaurant could cost $300,000 to $350,000. The second building choice is the Dairy Queen Grill and Chill 2530. It is 2,715 square feet and seats 78 customers. Making the land site suitable for building could cost $260,000 to $400,000, actual construction of the building could cost $500,000 to $600,000 and the equipment required to run the restaurant could cost $350,000 to $410,000.

Site Selection

The site criteria for a freestanding Dairy Queen franchise are as follows:
For the Dairy Queen Grill and Chill 2000 your selected site must be at least 26,250 square feet, provide a minimum of 30 parking spaces, have an average of 20,000 cars pass by it on a daily basis, be located in an area with a median annual household income of $35,000 and be able for drive-through operations.

For the Dairy Queen Grill and Chill 2350 your selected site must be at least 36,900 square feet, provide a minimum of 46 parking spaces, have an average of 20,000 cars pass by it on a daily basis, be located in an area with a median annual household income of $35,000 and be able for drive-through operations.

This information is current as of April 2010.

References

• Dairy Queen: Own a DQ