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Report Generated: March 31, 2026 Data Source: Official FDD Filing (2025)
See full cost breakdown →

Dairy Queen Franchise: Cost, Earnings & Real FDD Data

QSR

Dairy Queen is a global quick-service restaurant franchise known for soft-serve ice cream, frozen treats, burgers, and sandwiches. The brand operates one of the world's largest networks of ice cream and fast-food restaurants.

Founded 1940 · dairyqueen.com →

57.0
Average
4400
Total Units
N/A
Median Revenue
$1.15M – $2.44M
Total Investment
4.0%
Royalty Rate
N/A
Est. Profit
N/A
Closure Rate

The Dairy Queen franchise requires a total investment of $1.15M – $2.44M with a 4.0% royalty fee and operates 4,400 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Dairy Queen.

Key Takeaways

Fee Burden
Royalty + ad fund = 9.0% of gross sales, vs 7.9% category average
Financial Disclosure
No financial performance data disclosed (no Item 19)

Deal Breakers 1 flag detected

Critical issues identified from FDD analysis that warrant serious consideration before investing.

No Financial Performance Data Disclosed
This franchisor chose not to include Item 19 (Financial Performance Representations) in their FDD. While legal, this makes it difficult to evaluate whether franchisees are profitable. This is especially concerning given the significant investment required.
Question to ask the franchisor:
Why doesn't the FDD include financial performance data? Can you share any earnings information informally, or connect me with existing franchisees?

Franchise Breakdown Score 57.0/100 · Average

Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.

Unit Growth
8/20
Stability
12/20
Investment Efficiency
10/20
Fee Reasonableness
8/15
Transparency
4/10
System Size
15/15

1 How Much Does a Dairy Queen Franchise Cost? FDD Item 7

Estimated initial investment range as disclosed in the most recent FDD.

Total Estimated Investment
$1.15M -- $2.44M
Midpoint
$1.79M
View detailed breakdown table
Line Item Low Estimate High Estimate
Total $1,150,000 $2,440,000

2 Fee Structure FDD Items 5 & 6

Ongoing fees as disclosed in the FDD.

Royalty
0% Avg 5.3% 15%
4.0%
Ad Fund
0% Avg 2.6% 8%
5.0%

Core Recurring Fees

Royalty Fee (Gross Sales)
4.0% Monthly
Advertising Fee (Gross Sales)
5.0% Monthly
View complete fee table (2 items)
Fee Type Rate Type Basis Frequency
Royalty Fee 4.0% PCT Gross Sales Monthly
Advertising Fee 5.0% PCT Gross Sales Monthly

3 Dairy Queen Franchise Revenue & Earnings (Item 19) Item 19 Not Disclosed FDD Item 19

Financial Performance Representations not disclosed by this franchisor

Approximately 40% of franchisors choose not to include Item 19 financial performance data in their FDD. This does not necessarily indicate poor performance -- it simply means the franchisor has elected not to disclose this information.

Investment Calculator Interactive

Model your personal financial scenario by adjusting the assumptions below.

Annual Revenue
Operating Margin
Initial Investment
Loan Percentage
Gross Revenue
Royalty + Ad Fund
Operating Profit
Annual Loan Payment
Net Annual Cash Flow
Payback Period
5-Year Total Return
Break-Even Monthly Rev
This calculator is for illustrative purposes only. Actual results will vary based on location, management, market conditions, and other factors. Always consult with a financial advisor and franchise attorney before making investment decisions.

4 Risk Assessment

Automated risk indicators based on FDD data analysis.

%
Reasonable Fee Burden
Combined royalty + ad fund of 9.0% is within normal range.
?
Limited Financial Transparency
This franchisor does not disclose Item 19 financial performance data. About 40% of franchisors choose not to disclose.

6 Category Comparison QSR Brands

How Dairy Queen compares to peer brands in the QSR category.

Investment Midpoint

Median Revenue (Item 19)

Investment-to-Revenue Ratio

Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.

Brand Total Units Investment Range Median Revenue Royalty Inv/Rev Ratio
Subway 19502 $263K – $630K No Item 19 8.0% --
McDonald's 12772 $1.47M – $2.64M $3.00M 5.0% 0.7x
Dunkin' 8499 $527K – $1.83M No Item 19 5.9% --
Domino's Pizza 7043 $120K – $462K $20K 5.5% 14.9x
Wendy's 5552 $1.41M – $2.90M $2.33M 4.0% 0.9x
Burger King 5524 $1.80M – $3.30M $1.67M 4.5% 1.5x
Dairy Queen 4400 $1.15M – $2.44M No Item 19 4.0% --
Little Caesars 3705 $446K – $1.82M No Item 19 6.0% --
KFC 3558 $135K – $540K $1.35M 5.0% 0.2x
Arby's 3400 $313K – $3.45M $1.39M 4.0% 1.4x

SBA Loan Data 1992–2013

SBA 7(a) loan approvals for Dairy Queen franchisees from the SBA FOIA public dataset. Lenders report franchise codes at origination — this is real lending activity, not estimates.

$360M
Total SBA Approved
1,190
SBA Loans
$302K
Avg Loan Size
10.7%
Default Rate
Active Lending States 47
Distinct Lenders 298
Jobs Supported 12,119
Top Lending States
MN 89 OH 88 TX 70 CA 67 IN 65
Annual SBA Loan Volume

Source: SBA FOIA 7(a) public data. Franchise codes matched by brand name. Not all SBA loans are captured; some franchisees finance without SBA programs.

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