Quick Summary

Dairy Queen Franchise Costs & Profits: Dairy Queen, founded in 1940 by J. F. Grundhofer in Joliet, Illinois, has grown into one of the world’s largest fast-food chains. Owned by Berkshire Hathaway and headquartered in Bloomington, Minnesota, Dairy Queen is renowned for its ice cream, Blizzard desserts, and other frozen treats.

With over 4,300 locations across the United States and a strong global presence, Dairy Queen’s established brand and loyal customer base make it an attractive franchise opportunity for entrepreneurs seeking a proven business model.

Key Takeaways

• Dairy Queen operates over 4,300 U.S. locations, offering a consistent menu of ice cream and fast-food items.
• Franchisees must complete a rigorous training program to ensure high operational standards.
• Initial investments vary: Grill & Chill locations range from $1.1M to $1.85M, while DQ Treats stores cost $363K to $1.21M.
• Franchise fees are $25,000 for DQ Treats and $45,000 for Grill & Chill franchises.
• Franchisees can expect average profits of $236,000 to $332,863 annually, with average gross sales of $1,427,766 for Grill & Chill locations.

Is Dairy Queen a Franchise?

Yes, Dairy Queen operates as a franchise, allowing entrepreneurs to bring its beloved ice cream and fast-food offerings to local communities.

Franchise Features

• Menu Specialization: Ice cream, Blizzard desserts, sundaes, and fast-food items like burgers and chicken strips.

• Global Reach: Locations in Canada, Mexico, and beyond, supporting its strong international brand presence.

How Many Dairy Queen Locations Are There?

Dairy Queen boasts over 4,300 U.S. locations, with significant concentrations in:

• Texas

• Ohio

• Illinois

Since its inception in 1940, Dairy Queen has become a fast-food icon synonymous with soft-serve ice cream and Blizzards. This wide presence highlights the brand’s enduring popularity and market reach.

What Training Is Required to Open a Dairy Queen?

Dairy Queen provides a comprehensive training program designed to prepare franchisees for success:

Training Program

• Classroom Instruction: 32 hours covering business management, customer service, and operational standards.

• On-the-Job Training: 245 hours of hands-on learning at an existing Dairy Queen location.

The training ensures franchise owners adhere to Dairy Queen’s high standards and effectively manage daily operations.

How Much Does It Cost to Open a Dairy Queen?

The cost of opening a Dairy Queen franchise depends on the model:

Initial Investment

• Grill & Chill Locations: $1,101,135 to $1,856,655.

• DQ Treats Stores: $363,075 to $1,215,600.

Breakdown of Costs

• Franchise Fee: $25,000 for DQ Treats; $45,000 for Grill & Chill.

• Royalty Fees: 4% for Grill & Chill; 5% for DQ Treats.

• Advertising Fees: 5-6% of gross sales.

• Additional Costs: Real estate, equipment, supplies, training, and working capital.

How Much Does a Dairy Queen Franchise Make a Year?

Owning a Dairy Queen franchise can be highly profitable:

Average Annual Profits

• Grill & Chill Locations: $236,000 to $332,863 in annual profit.

Average Gross Sales

• 2021 Figures: $1,427,766, demonstrating steady growth despite economic challenges.

With the right location and effective management, Dairy Queen franchisees can expect lucrative returns on their investment.

Why Choose Dairy Queen?

Pros

• Iconic Brand: Nearly a century of customer loyalty and brand recognition.

• Diverse Product Line: Ice cream, desserts, and fast-food items cater to a broad audience.

• Comprehensive Support: Extensive training and ongoing marketing assistance.

Cons

• High Startup Costs: Significant initial investment required.

• Market Competition: Faces challenges from other dessert and fast-food brands.

Franchise Empire’s Thoughts

Dairy Queen’s long-standing reputation and global presence make it an appealing franchise opportunity. While startup costs may deter some entrepreneurs, the potential for strong returns and the backing of a well-established brand provide a solid foundation for success.

Interested in exploring more franchise opportunities? Check out our guide to 5 Low-Cost Franchises That Make $1,000,000 and discover how to maximize your investment potential!