DQ Grill And Chill
DQ Grill & Chill offers quick-service restaurants serving soft-serve ice cream and more. Known for its dairy-based treats and casual dining atmosphere, it operates in the fast-food sector alongside chains like McDonald's and Burger King.
DQ Grill And Chill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single DQ Grill & Chill® franchise ranges from $1,516,200 to $2,543,050. This range includes the initial franchise fee and other required payments as specified in Items 6 and 7 of the Company's Franchise Disclosure Document [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of franchise. For DQ Grill & Chill or DQ Texas Restaurant, it is $45,000, while for a DQ Treat Store and other concepts, it is $25,000 [p.194]. This fee is generally not refundable except as specified in the FDD [p.194] and must be included when submitting your application to ADQ [p.20].
What are the ongoing royalty and advertising fees?
The FDD does not provide specific details on the amounts of ongoing royalty and advertising fees. These fees are typically outlined in the franchise agreement [p.158] and include the sales promotion, marketing, or advertising fee required under the existing franchise agreement. This fee is used to support advertising and promotional activities as established by the company [p.39].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the duration of the initial franchise agreement or its renewal terms beyond mentioning that a current franchisee with a contractual right to renew may need to sign a renewal addendum [p.10].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. Good cause includes but is not limited to unspecified factors. Therefore, you would need to consult with ADQ regarding any potential transfer of your franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable period, which cannot exceed 30 days [p.5]. Additionally, termination provisions may be subject to state laws like RCW 19.100.180 or court decisions that could supersede the terms of the franchise agreement [p.182].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify financially, you need to demonstrate sufficient net worth and liquid capital as evidenced by either completing a provided form or submitting a balance sheet showing your net worth along with proof of assets and liabilities [p.192]. Additionally, the minimum requirements for liquid assets and equity investment are specified on page 186, but the exact amounts are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. However, you will be granted trade areas if you enter into a MultiTRA, and the franchisor agrees not to operate or issue licenses for competing businesses using the trademarks within those described areas as long as the agreement remains in effect [p.102, p.101]. This isn't specified in the excerpts regarding options or rights of first refusal to acquire additional franchises [p.48].
What training and ongoing support does the franchisor provide?
The franchisor does not provide any initial or ongoing training or assistance related to standards, policies, or procedures required under the Fast Food Act [p.85]. For DQ Grill & Chill franchises, there are three phases of training: Phases 1 and 2 occur in certified locations owned by either franchisees or ADQ's affiliates, while Phase 3 takes place at ADQ’s support center; however, ADQ may conduct Phase 3 online if necessary [p.46]. The franchisor supports applicants with the Timeline Incentive Program to help maintain an efficient timeline from application approval to opening [p.194].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not share specific financial performance or earnings information with franchise applicants other than as specified in the FDD. ADQ may provide actual records of an existing outlet if you are purchasing one, but generally, no promises or representations regarding potential sales, income, profits, or expenses are made [p.68, p.195].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the items listed on the Menu as designated and approved by the company [p.107]. You may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].