At a Glance
Products & Services: Ice cream, hamburgers, chicken, sandwiches
Number of Locations: 6,216
Total Investment: $779.68K - 1.73M
Founded: 1940
Began Franchising: 1944
About American Dairy Queen
Ice cream manufacturer J.F. McCullough was experimenting with a recipe for a new frozen dairy product, stemming from his belief that ice cream tasted better when it was soft and served fresh from the freezer, not frozen solid. With his recipe perfected, McCullough and his son, Alex, convinced one of their customers to hold an introductory sale of the new soft ice cream, and more than 1,600 people showed up to try it.Based on that initial success, the McCulloughs opened the first Dairy Queen location in 1940 in Joliet, Illinois. The first stores sold only soft-serve ice cream--in sundaes, take-home pints and quarts, and cones--but over the years, a variety of ice cream treats were added to the menu, such as banana splits and Dilly Bars.
In the 1950s, some Dairy Queens began serving hot food items. Today, stores system wide have menus that include hot dogs, hamburgers and chicken strips through Dairy Queen's Grill & Chill concept. The company also offers a DQ Orange Julius concept that offers both Dairy Queen's frozen treats and the sister company's fruit drinks and smoothies.
Franchise Units
| Year | U.S. | Canadian | International | Company Owned |
| 2012 | 4,548 | 646 | 1,019 | 3 |
| 2011 | 4,498 | 590 | 857 | 3 |
| 2010 | 4,451 | 583 | 710 | 71 |
| 2009 | 4,480 | 577 | 577 | 70 |
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $35,000
Ongoing Royalty Fee: 4%
Term of Franchise Agreement: Varies, renewable
Financial Requirements
Net Worth: $750,000
Liquid Cash Available: $400,000
Operations
Number of employees needed to run franchised unit: 20 - 40. Absentee ownership of franchise is allowed..| Financing Type | In-House | Third Party |
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How This Franchise Supports Franchisees
Franchise Ranking History
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