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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.
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Franchise Costs
4% royalty + 5-6% sales promotion program (ad fund)
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
Avg. Revenue: $1,427,281
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Unlock financial performance dataDQ GRILL AND CHILL FRANCHISE Franchise Analysis
Berkshire Hathaway's stamp on a DQ Grill & Chill franchise might scream stability, but a closer look at the FDD uncovers a system quietly contracting for the first time in years. Item 19 delivers revenue disclosures that stand out in quick-service, while elevated terminations and transfers hint at operational turbulence. Can this ice cream giant still chill out solid returns, or is the grill overheating?
Item 7 lays out the financial entry: a $45,000 franchise fee within a total investment of $1,516,200 to $2,543,050, covering build-out for these seated quick-service spots slinging soft-serve and GrillBurgers. Ongoing fees hit 4% royalties plus a 5-6% ad fund, standard for the sector but stacking up on high-volume units. Item 19 shines with average gross revenues of $1,427,281 and medians at $1,355,422 across comparable outlets, translating to estimated profits from $256,862 to $684,526 after expenses—strong for fast food if you hit the upper end, though variability screams execution risk.
System health raises flags: 1,969 franchised locations dwarf 2 corporate ones, but total units slipped from 2,043 in 2023 to 2,033 in 2024 (-0.5% growth), with just 38 projected new units. Terminations totaled 46 amid disputes over supply compliance, unpaid fees, and encroachment, while 108 transfers suggest churn among owners. Litigation clusters around contract breaches, signaling tight oversight that could squeeze underperformers. High revenues tempt, but contraction and turnover mean only top operators thrive—pause if you're not ready for intense competition in treats and QSR.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How DQ GRILL AND CHILL FRANCHISE Compares
Key Insights
- Higher investment than 95% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
DQ GRILL AND CHILL FRANCHISE Current | $1.5M – $2.5M | $45K | 4.0% | 1,969 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 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
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Unlock location growth dataFranchisee Contacts
2,565 franchisee contacts on file from official FDD filings.
2,565 Contacts Available
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Unlock contactsDue 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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
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.
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