DQ Treat
DQ Treat franchises offer quick-service locations selling Dairy Queen soft-serve ice cream, treats, and beverages. Known for its popular frozen custard, this franchise fits into the quick-service food establishment sector.
DQ Treat 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® Treat franchise ranges from $549,100 to $1,604,700. This includes the initial franchise fee and other operating expenses but does not cover additional costs such as land acquisition or specific service fees for new units [p.1, p.28, p.296].
What is the initial franchise fee?
The initial franchise fee varies based on the concept: - $45,000 for DQ Grill & Chill or DQ Texas Restaurant [p.157]. - $25,000 for a DQ Treat Store and other concepts [p.157]. However, in some cases, there is no initial franchise fee required as indicated on pages [p.143], [p.145], and [p.130]. This isn't specified in the excerpts.
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the amounts or structure of ongoing royalty and advertising fees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in the excerpts. Regarding renewal, if you are a current franchisee with a contractual right to renew at the end of the initial term and meet ADQ's qualifying criteria for renewal, you will be required to sign the franchise agreement and the renewal addendum [p.132].
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. Good cause includes but is not limited to unspecified factors [p.6(g)]. Therefore, you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on the provided criteria.
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 time, which cannot exceed 30 days [p.116]. Additionally, termination may be based on other grounds not specified in these excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify financially, you need to demonstrate sufficient net worth and provide proof of assets and liabilities. Additionally, you must meet the minimum requirements for liquid assets as specified in [p.149]. This isn't covered in detail here, but typically includes having a certain amount of liquid capital available.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. ADQ does not grant exclusive territories under the terms of a franchise agreement. However, there is a possibility that a protected territory may be included in your agreement, as specified in [p.145] and [p.143], but this depends on the specific details outlined in your existing franchise agreement.
What training and ongoing support does the franchisor provide?
The franchisor does not provide any initial or ongoing training or assistance related to developing or implementing standards, policies, or procedures required under the Fast Food Act [p.69]. Training for franchisees is typically conducted in phases 1 and 2 at locations certified by ADQ, with phase 3 occurring either in ADQ's support center or another location designated by ADQ [p.46], though online or virtual training may be an option under certain circumstances.
How many franchised outlets are there, and how many have closed or been terminated?
The total number of franchised outlets is not specified in these excerpts. According to [p.56], as of December 31, 2024, the totals include DQ® Treat, Dairy Queen®/Limited Brazier®, and Dairy Queen® soft-serve only locations, but it does not provide a specific number. Additionally, [p.66] states that there are 30 former franchisees or subfranchisees listed in Exhibit J who have had their franchises terminated, canceled, not renewed, or otherwise ceased to do business during the 2024 fiscal year.
Does the franchisor share any financial performance or earnings information?
The franchisor does not disclose actual or potential sales, profits, earnings, or financial success to franchise applicants except as specified in the FDD [p.158]. The company recommends contacting existing franchise operators but does not warrant the accuracy of the information obtained this way [p.158]. Financial performance information can be provided if there is a reasonable basis and it is included in the disclosure document, or if actual records of an existing outlet are given to a potential buyer [p.56]. However, no representations about future financial performance are made, either by the franchisor or its representatives [p.56].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the items listed on the Menu as periodically designated and approved by the company [p.92]. You may have to buy or lease certain items from the franchisor or a limited group of suppliers the franchisor designates, including soft drinks, third party branded products, equipment, and proprietary powders and frozen orange juice concentrate [p.30, p.172(p.3)].