Franchise Description: American Dairy Queen Corporation (ADQ), the franchisor, offers single unit and multiple unit franchises for the operation of DQ Grill & Chill restaurants at authorized locations. A DQ Grill & Chill restaurant is a quick service food restaurant with seating from which franchisees will sell the full line of approved soft-serve, treat, food and beverage menu items.
Territory Granted: When franchisees enter into a Franchise Agreement they are granted the right to operate a single restaurant at an authorized location that the franchisor has consented to in writing. Franchisees are not granted any minimum area or territory. The franchisor does not grant exclusive territories to any franchisee under the terms of a Franchise Agreement.
Obligations and Restrictions: Franchisees are required to operate their Dairy Queen Chill & Grill location under their active and continuous supervision. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The franchisor requires franchisees to offer and sell only those goods and services that it has approved. In addition, franchisees may offer and sell these approved goods and services only from their restaurant. Franchisees must carry the required menu items that the franchisor designates for their business.
Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Renewal is for one additional term for the shorter of 10 years or the remaining term of the lease, if requirements are met.
Financial Assistance: Although they may have done so in the past, the franchisor and its affiliates generally do not offer financing arrangements or similar assistance to franchisees. Neither the franchisor nor its affiliates finance any part of the initial franchise fee, or the MultiTRA initial franchise fee deposit. Neither the franchisor nor its affiliates will offer site acquisition, equipment or leasehold financing services to franchisees for the establishment of their franchised business. Franchisees must obtain necessary financing through third parties. The franchisor periodically arranges with third party finance companies or banks to make financing programs available to franchisees. There is no assurance that financing will be offered in any particular instance.
Estimated Initial Investment
| 4pt 0in 5.4pt">Name of Fee | 4pt 0in 5.4pt">Low | 4pt 0in 5.4pt">High |
| 4pt 0in 5.4pt">Initial Franchise Fee | 4pt 0in 5.4pt">$45,000 | 4pt 0in 5.4pt">$45,000 |
| 4pt 0in 5.4pt">ALTA Survey and/or Site Investigation Report (SIR) | 4pt 0in 5.4pt">$0 | 4pt 0in 5.4pt">$5,000 |
| 4pt 0in 5.4pt">Initial Training Fees and Costs | 4pt 0in 5.4pt">$1,200 | 4pt 0in 5.4pt">$11,800 |
| 4pt 0in 5.4pt">Travel And Living Expenses for Training Programs | 4pt 0in 5.4pt">$23,000 | 4pt 0in 5.4pt">$42,950 |
| 4pt 0in 5.4pt">Building Construction and Leasehold Improvements | 4pt 0in 5.4pt">$800,000 | 4pt 0in 5.4pt">$1,400,000 |
| 4pt 0in 5.4pt">Construction Consultation Services | 4pt 0in 5.4pt">$0 | 4pt 0in 5.4pt">$7,500 |
| 4pt 0in 5.4pt">Building Plans, Design Intent Plans and Architectural Seal | 4pt 0in 5.4pt">$15,000 | 4pt 0in 5.4pt">$60,000 |
| 4pt 0in 5.4pt">Equipment (includes signs and point-of-sale systems) | 4pt 0in 5.4pt">$550,000 | 4pt 0in 5.4pt">$700,000 |
| 4pt 0in 5.4pt">Training Inventory | 4pt 0in 5.4pt">$6,000 | 4pt 0in 5.4pt">$12,000 |
| 4pt 0in 5.4pt">Opening Inventory | 4pt 0in 5.4pt">$20,000 | 4pt 0in 5.4pt">$35,000 |
| 4pt 0in 5.4pt">Utility Deposits, Business Licenses and Government Charges | 4pt 0in 5.4pt">$4,000 | 4pt 0in 5.4pt">$17,000 |
| 4pt 0in 5.4pt">Attorneys’ Fees | 4pt 0in 5.4pt">$1,000 | 4pt 0in 5.4pt">$8,000 |
| 4pt 0in 5.4pt">Additional Funds (3 Months) | 4pt 0in 5.4pt">$51,000 | 4pt 0in 5.4pt">$198,000 |
| 4pt 0in 5.4pt">ESTIMATED TOTAL | 4pt 0in 5.4pt">$1,516,200 | 4pt 0in 5.4pt">$2,542,250 |
| 4pt 0in 5.4pt">Type of Fee | 4pt 0in 5.4pt">Amount |
| 4pt 0in 5.4pt">Continuing License Fee | 4pt 0in 5.4pt">4% of gross sales. |
| 4pt 0in 5.4pt">Sales Promotion Program Fee | 4pt 0in 5.4pt">5% to 6% of gross sales. |
| 4pt 0in 5.4pt">Operational Program Fees | 4pt 0in 5.4pt">Will vary under circumstances. |
| 4pt 0in 5.4pt">Transfer Fee | 4pt 0in 5.4pt">$5,500 |
| 4pt 0in 5.4pt">Renewal Fee | 4pt 0in 5.4pt">$22,500 |
| 4pt 0in 5.4pt">Audit and Recordkeeping Costs | 4pt 0in 5.4pt">The franchisee’s contractual percentage continuing license fees and percentage sales promotion program fees times the amount of understated gross sales, plus any other amounts owed to the franchisor. |
| 4pt 0in 5.4pt">Termination Fee | 4pt 0in 5.4pt">One of the following: (1) Two times the continuing license fee due for the last 12 months of active operations; (2) If the location did not operate for a full 12 months, 24 times the average monthly continuing license fee when location was open; or (3) If less than 24 months remain on the franchise agreement, the number of months remaining times the average monthly continuing license fees due for the last 12 months of active operations. |
| 4pt 0in 5.4pt">Interest Expenses | 4pt 0in 5.4pt">18% per annum or at maximum rate permitted by governing law. |
| 4pt 0in 5.4pt">Late Fees | 4pt 0in 5.4pt">$50 per delinquent report or payment. |
| 4pt 0in 5.4pt">Additional Training Fees | 4pt 0in 5.4pt">Will vary based on circumstances. |
| 4pt 0in 5.4pt">Gift Card Program Fees | 4pt 0in 5.4pt">Currently, 3% of total gift card redemptions. |
| 4pt 0in 5.4pt">Costs and Attorneys’ Fees | 4pt 0in 5.4pt">Will vary under circumstances. |
| 4pt 0in 5.4pt">Training Materials | 4pt 0in 5.4pt">$150-$500 |
| 4pt 0in 5.4pt">Training Cancellation or Trainee Substitution Fee | 4pt 0in 5.4pt">$100-$1,000 |
The above information has been compiled from the FDD of Dairy Queen Chill & Grill. Year of FDD: 2024.