Dairy Queen Franchise Costs & Profits (2024)

Quick Summary

Founded in 1940 by J. F. Grundhofer, Dairy Queen has grown from its first store in Joliet, Illinois, to become one of the world's largest fast-food chains, now owned by Berkshire Hathaway and headquartered in Bloomington, Minnesota. 

Specializing in ice cream and dairy-based desserts, Dairy Queen offers a wide array of flavors, including sundaes, Blizzard desserts, and other frozen treats. Its global expansion includes locations in Canada, Mexico, and beyond, making it a beloved brand for dairy dessert enthusiasts.

Key Takeaways

• Dairy Queen operates as a franchise, offering a core menu of ice cream and frozen desserts, with over 4,300 locations across the U.S., appealing to entrepreneurs with its established brand and customer base.

• Franchisees must complete a comprehensive training program, including 32 hours of classroom instruction and 245 hours of on-the-job training, to ensure adherence to Dairy Queen's high standards.

• Opening a Dairy Queen franchise requires a significant financial investment, with costs varying by model; Grill & Chill locations require $1.1M to $1.85M, while DQ Treats stores cost $363K to $1.21M.

• The franchise fee for Dairy Queen varies, costing $25,000 for a DQ Treats location and $45,000 for a Grill & Chill franchise, with ongoing royalty and advertising fees based on gross sales.

• Dairy Queen franchisees can achieve an average profit of $236,000 to $332,863.17 for Grill & Chill franchises, with average gross sales reaching $1,427,766 in 2021, indicating potential for a lucrative business.

Table Of Contents

Is Dairy Queen A Franchise?

Yes, Dairy Queen operates as a franchise system. Specializing in ice cream and frozen desserts, Dairy Queen locations offer a consistent core selection of treats, including the beloved Blizzard and classic ice cream cones, with some regional menu variations. 

This model allows entrepreneurs to bring Dairy Queen's sweet offerings to their local communities.

How Many Dairy Queen Locations Are There? 

Dairy Queen, a beloved fast-food icon, boasts over 4,300 locations across the United States, with most of the locations in Texas, Ohio, and Illinois. 

Since its inception in 1940, Dairy Queen has become synonymous with soft-serve ice cream, Blizzards, and a variety of fast-food items like burgers and chicken strips. 

Entrepreneurs find Dairy Queen appealing due to its established brand, loyal customer base, and comprehensive support for franchisees, making it a potentially lucrative investment.

What Training Is Required To Open A Dairy Queen?

Dairy Queen requires franchisees to complete a comprehensive training program before opening their franchise. 

This program includes 32 hours of classroom instruction and 245 hours of on-the-job training, ensuring franchise owners are well-prepared to meet Dairy Queen's standards and operate their stores in accordance with the Franchise Agreement. 

These rigorous training requirements are designed to maintain high standards across all Dairy Queen locations, from store build-out to product offerings.

How Much Does It Cost To Open A Dairy Queen? 

Opening a Dairy Queen franchise requires a significant financial commitment, with the total investment ranging based on the franchise model.

For a Grill & Chill location, the initial investment spans from $1,101,135 to $1,856,655, while a DQ Treats store usually costs between $363,075 and $1,215,600. 

These figures include franchise fees and extend to cover expenses such as real estate, equipment, supplies, licenses, working capital, and training, culminating in a total potential outlay of $1,461,200 to $2,426,990.

Also, franchisees must pay a royalty fee of 4% for Grill & Chill, 5% for DQ Treats, and an advertising fee of 5-6% of gross sales. 

Financial prerequisites for a DQ Grill and Chill franchise include a minimum net worth of $750,000 and liquid assets of $400,000 for single units. 

Entrepreneurs interested in joining the Dairy Queen franchise family should thoroughly assess these financial requirements and ongoing costs to meet the brand's expectations and sustain the business long-term.

What Is The Dairy Queen Franchise Fee?

As discussed above, Dairy Queen allows entrepreneurs to open their own restaurants in several locations. Each type of restaurant will have its own startup and operating costs associated with it. 

The same applies to the franchise fee for a Dairy Queen franchise. 

The Dairy Queen franchise fee varies, costing $25,000 for a DQ Treats location and $45,000 for a Grill & Chill franchise. 

Despite these initial costs, the investment grants franchisees access to a suite of benefits, including exclusive product lines, expert marketing support, and extensive training programs. 

With a robust presence of over 4,300 locations in the United States, Dairy Queen offers a lucrative business opportunity underpinned by a well-established brand, making it an attractive option for prospective franchise owners seeking a proven path to success.

How Much Does A Dairy Queen Make A Year?

Owning a Dairy Queen franchise can be a profitable venture, with franchise owners typically making an average manageable profit ranging from $236,000 to $332,863.17 for a Grill & Chill franchise. 

The average gross sales for Dairy Queen franchises have consistently grown year over year since 2018, even during challenging times like the COVID-19 pandemic.

In 2021, the average gross sales for these franchises reached $1,427,766. This suggests that with the right location, management, and adherence to Dairy Queen's standards, franchisees have the potential to enjoy a successful and lucrative business.

Franchise Empire’s Thoughts

It’s kind of crazy to think that Warren Buffet owns Dairy Queen. Well Berkshire Hathaway owns them.

Outside of going a few times as a kid, I’ve never really been a customer of Dairy Queen and anytime I’ve seen one they don’t look busy, so I’m not sure how they produce the numbers they do or who in the world is keeping them in business.

Apparently someone is! 

Given all of the innovation in the food space, I’m not sure this would be my top choice if I went into the food franchise category, but I get the allure of going with such an iconic brand.

But who in their right mind thinks…”I want to get a Burger from Dairy Queen”?

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Disclaimer: This article is for informational and educational purposes only, and should not be considered as professional advice. We don't guarantee the accuracy or completeness of the information. It's not a recommendation or offer to buy or sell any financial products and doesn’t apply to specific personal circumstances. You should evaluate the risks and merits yourself before making any financial decisions based on this content.