Dairy Queen Franchise Review

The Dairy Queen System has developed over 5900 locations in the United States and Canada, including locations in 22 countries. Texas is the proud supporter of the most Dairy Queen restaurants with over 600 locations.

According to his Davenport obituary, John F. McCullough was Dairy Queen’s original founder Born in Douds, Iowa, McCullough was married in 1893, attended college in Oswego, N.Y. and moved to Davenport in 1911. McCullough is credited with originating the Dairy Queen concept in 1940 and retiring in 1950 with “4000 stands in operation.” According to the DQ website, the Mega-brand’s story begins with a 10 cent sale of a “then unnamed product” in 1938, in Kankakee, Illinois. A friend of McCullough’s by the name of Sherb Noble agreed to sell the new frozen dairy product in his ice-cream shop. Apparently, he sold over 1600 servings in two hours. Not the kind of man to pass up a good opportunity, Mr. Noble managed to gain operation of the first Dairy Queen Restaurant, which opened for business on June 22, 1940. As of 1998, International Dairy Queen, Inc. became a wholly-owned subsidiary of Berkshire Hathaway, Inc. and includes over 5,900 Dairy Queen stores, 280 Orange Julius stores, and 26 Karmelkorn Shoppes.

If you want to purchase a DQ franchise, you will have to first identify the concept in which you are interested. The choices are DQ Grill & Chill, or the DQ Orange Julius Treat Center. Choose your location area and then submit a request. Dairy Queen requires a franchisee to have $400,000 in liquid assets with $300,000 as cash equity, and a minimum net worth of $750,000. It will cost $895,000 to 1,195,000 for 2048 sq. ft. building that seats 48, and $1,080,000 to $1,370,000 for 2709 sq. ft. building that seats 78. Check out the website to see available states.

With all the focus on fun and delicious frozen treats, it seems fitting that Dairy Queen supports the Children's Miracle Network and has done so since 1984. To date, DQ has raised more than $44 million for the cause. Dairy Queen also provides financial support to various “Minnesota-based 501(C)3 organizations” that exist to help challenged families suffering from sickness, disabilities, and divorce. DQ also offers no sugar-added treats for diet conscious patrons who do not want to be left out of the fun. These include the DQ Fudge Bar, the DQ Vanilla Orange Bar, and the Chocolate Dilly Bar.

• Choices - DQ is all about choices offering two franchise options with varying building sizes and types.

Cons

• Investment - Mega Brand franchises are getting harder to get. DQ may be one of the best choices in franchising but it is also one of the most expensive.

Dairy Queen Franchise Information

Business Established: 1940
Franchising Since: 1944
Franchise Fee: $35,000-Grill & Chill/ $25,000-Orange Julius
Total Investment: $895,000 to 1,370,000-Grill & Chill/$290,000 to $635,000-Orange Julius