Dairy Queen Franchise FDD, Profits & Costs (2025)
Dairy Queen, founded in 1940 in Joliet, Illinois, has been a key player in the quick-service restaurant industry for over eight decades. Known for its Blizzard® Treats, Dilly® Bars, and a wide variety of ice cream and fast food items, Dairy Queen quickly became a beloved brand.
The franchise system started the same year as the first store, and today, Dairy Queen is headquartered in Minneapolis, Minnesota.
It operates under International Dairy Queen Inc., a subsidiary of Berkshire Hathaway, led by Warren Buffett, providing financial stability and a commitment to quality and innovation.
Dairy Queen Franchise Initial Investment
How much does it cost to start a Dairy Queen franchise? It costs on average between $1,516,000 – $2,543,000 to start a Dairy Queen franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $45,000 |
| ALTA Survey and/or Site Investigation Report | $0 – $5,000 |
| Initial Training Fees and Costs | $1,200 – $12,600 |
| Travel and Living Expenses for Training Programs | $23,000 – $42,950 |
| Building, Construction and Leasehold Improvements | $800,000 – $1,400,000 |
| Construction Consultation Services | $0 – $7,500 |
| Building Plans, Design Intent Plans, and Architectural Seal | $15,000 – $60,000 |
| Equipment (includes signs and point-of-sale systems) | $550,000 – $700,000 |
| Training Inventory | $6,000 – $12,000 |
| Opening Inventory | $20,000 – $35,000 |
| Utility Deposits, Business Licenses, and Government Charges | $4,000 – $17,000 |
| Attorneys’ Fees | $1,000 – $8,000 |
| Additional Funds – 3 Months | $51,000 – $198,000 |
| Total | $1,516,200 – $2,543,050 |
Dairy Queen Franchise Average Revenue (AUV)
How much revenue can you make with a Dairy Queen franchise? A Dairy Queen franchised restaurant makes on average $1,355,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $469,000 yearly revenue for similar restaurant Ice cream franchises. Below are a few Dairy Queen competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Dairy Queen locations are there?
As of the latest data, there are 1,971 Dairy Queen locations in the United States. The state with the most locations is Texas, which has 579 stores, making up about 14% of all U.S. Dairy Queen locations.
What is the total investment required to open a Dairy Queen franchise?
The total investment required to open a Dairy Queen franchise ranges from $1,516,000 to $2,543,000.
What are the ongoing fees for a Dairy Queen franchise?
Dairy Queen franchisees are required to pay a 4% royalty fee on gross sales and a 5-6% advertising fee, which supports both national and local marketing efforts. These fees help maintain consistent operational support and promote the brand through various advertising channels.
What are the financial requirements to become a Dairy Queen franchisee?
To become a Dairy Queen franchisee, the financial requirements include a minimum net worth of $750,000 and liquid assets of at least $400,000. These financial thresholds ensure that prospective franchisees have the necessary resources to cover initial costs and support the business
How much can a Dairy Queen franchise owner expect to earn?
The average gross sales for a Dairy Queen franchise are approximately $1.36 million per location. Assuming a 15% operating profit margin, $1.36 million yearly revenue can result in $204,000 EBITDA annually.
Who owns Dairy Queen?
Dairy Queen is owned by Berkshire Hathaway, the multinational conglomerate led by Warren Buffett. Berkshire Hathaway acquired Dairy Queen in 1997 through its subsidiary, International Dairy Queen, Inc. The acquisition made Dairy Queen part of Berkshire Hathaway’s diverse portfolio of companies.
Disclaimer
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