DQ GRILL AND CHILL FRANCHISE
American Dairy Queen Corporation offers single-unit and multi-unit franchises for DQ Grill & Chill restaurants, which are quick-service food establishments with seating that sell a full line of approved soft-serve treats, food, and beverage menu items under DQ trademarks. Franchisees receive operational and management support, training, national promotions, and access to supply chain services. The target market is the general public, competing in the highly competitive quick-service, fast casual, and specialty treat sectors.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4% royalty + 5-6% sales promotion program (ad fund)
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 321 franchisee-owned and operated DQ Grill & Chill® restaurants that qualified for inclusion in Schedule A for 2024, reporting sales data for all 12 months of the year. Profit metrics are based on a subset of 55 of these restaurants that submitted usable P&Ls for Schedule B in 2024.
* Average gross revenue and median gross revenue are from Schedule A, 2024 data, based on 321 franchisee-owned and operated restaurants. Average gross profit, average net profit (Manageable Profit), and best guess profit low/high are derived from Schedule B, 2024 data, based on a subset of 55 franchisee-owned and operated restaurants that submitted usable P&Ls. Average gross profit was calculated as Schedule B Average Gross Sales ($1,648,666) * (1 - Average Cost of Goods percentage (0.3069)) = $1,142,690.40. Average net profit (Manageable Profit) was calculated as Schedule B Average Gross Sales ($1,648,666) * Average Manageable Profit percentage (0.2892) = $476,794.21. Best guess profit low was calculated as Schedule B Average Gross Sales ($1,648,666) * Minimum Manageable Profit percentage (0.1558) = $256,862.16. Best guess profit high was calculated as Schedule B Average Gross Sales ($1,648,666) * Maximum Manageable Profit percentage (0.4152) = $684,526.12. Manageable Profit is defined in Item 6 (page 7) as profit before occupancy costs, insurance, licensing fees, sales promotion fees, legal fees, accounting fees, and other administrative costs.
Extracted Item 19 Section
How DQ GRILL AND CHILL FRANCHISE Compares to Other Fast Food Franchises
Key Insights
- Higher investment than 93% of Fast Food franchises
- Top 10 largest franchise system in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
DQ GRILL AND CHILL FRANCHISE Current | $1.5M - $2.5M | $45K | 4.0% | 1,969 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+33 more states
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily termination disputes, supply and mix compliance violations, unpaid fees and reporting failures, encroachment claims, franchise transfer disputes, and breach of contract over promotional programs.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a DQ GRILL AND CHILL FRANCHISE franchise?
The total initial investment to open a DQ GRILL AND CHILL FRANCHISE franchise ranges from $1,516,200 to $2,543,050. This includes a franchise fee of $45,000. Ongoing royalty fees are 4.0% of gross sales.
How much revenue does a DQ GRILL AND CHILL FRANCHISE franchise make?
According to the 2025 FDD, the average gross revenue for a DQ GRILL AND CHILL FRANCHISE franchise is $1,427,281. The median revenue is $1,355,422.
How much profit can you make with a DQ GRILL AND CHILL FRANCHISE franchise?
Based on the financial performance data in the FDD, estimated profit for a DQ GRILL AND CHILL FRANCHISE franchise ranges from $256,862.16 to $684,526.12 per year. Actual results vary based on location, management, and market conditions.
How many DQ GRILL AND CHILL FRANCHISE franchise locations are there?
As of the 2025 FDD, DQ GRILL AND CHILL FRANCHISE has 1,969 franchise locations. The company has been franchising since 1962.
Is DQ GRILL AND CHILL FRANCHISE a good franchise to buy?
DQ GRILL AND CHILL FRANCHISE shows several positive indicators: established brand with 1,969+ locations, transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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