Food & Beverage FDD Analyzed

Dairy Queen

American Dairy Queen Corporation

Bloomington, MN Website FDD: March 27, 2025
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Investment Range

$549,100 - $1,604,700

Franchise Fee

$25,000

Royalty

5%

Marketing Fee

11%

Total Units

727

Median Revenue

Unit Growth

Last 5 years

2022

785

-4.7%

2023

748

-2.8%

2024

727

Initial Investment Breakdown

CategoryLowHigh
Initial Franchise Fee(3)$25,000$25,000
Initial Training Fees and Costs(4)$400$8,400
Travel and Living Expenses for Training Programs(5)$5,200$17,300
Building, Construction and Leasehold Improvements(6)$235,000$870,000
Prepaid Rent and Security Deposit(7)$2,500$5,500
+ 8 more categories (apply to see all)
TOTAL INVESTMENT$549,100$1,604,700

Financial Performance Data

Access detailed revenue metrics, expense breakdowns, and profitability data from the Item 19 Financial Performance Representation.

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Franchisee Contact Directory

180

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Is Dairy Queen a Good Investment?

Based on the FDD data, here are key factors to consider when evaluating a Dairy Queen franchise opportunity:

Potential Advantages

  • Established brand with 727+ locations nationwide
  • Competitive royalty fee of 5%

Considerations

  • Declining unit count may indicate market challenges
  • Litigation history disclosed in FDD (review Item 3 carefully)
  • No Item 19 Financial Performance Representation provided
  • Higher initial investment requires significant capital

Disclaimer: This analysis is based on publicly available FDD data and should not be considered financial advice. Always consult with a franchise attorney and accountant before making any investment decision.

Frequently Asked Questions About Dairy Queen

How much does a Dairy Queen franchise cost?

The total initial investment for a Dairy Queen franchise ranges from $549,100 to $1,604,700. This includes the franchise fee, equipment, inventory, real estate, and other startup costs as disclosed in the FDD.

What is the Dairy Queen franchise fee?

The initial franchise fee for Dairy Queen ranges from $25,000 to $25,000.

What are the ongoing fees for a Dairy Queen franchise?

Dairy Queen franchisees pay a 5% royalty fee and a 11% marketing/advertising fee on an ongoing basis.

How many Dairy Queen franchise locations are there?

Dairy Queen currently operates 727 franchise locations. This includes both franchised and company-owned units.

Quick Facts

Litigation Disclosed
Bankruptcy None
Protected Territory No
Item 19 (FPR) Not Provided
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