Dairy Queen Franchise Cost and Profits in 2026

By FDDIQ Research Team | April 2026

Based on 2025 FDD Filing

Quick Summary

$25,000

Franchise Fee

$1.7M

Midpoint Investment

7.0%

Total Fees

$1.5M

Median Revenue

-1

Net Closed

Cost Breakdown

Fee	Amount
Franchise Fee	$25,000
Total Investment Range	$623,000 - $2.8M
Midpoint Investment	$1.7M
Royalty Rate	4.0%
Advertising Fund	3.0%
Total Ongoing Fees	7.0%

Revenue and Profit Analysis

The median Dairy Queen franchise generates $1.5M in annual revenue. With estimated margins of 13%, that is approximately $199,481 in annual EBITDA.

Revenue per dollar invested: 0.90x.

Unit Count

Dairy Queen has 2 franchised units. Lost 1 net units (-100.0% decline).

SBA Loan Performance

SBA default rate: 0.0% across 2 loans. This is below the franchise industry average (~7-8%).

Key Risk Factors

Declining unit count (1 net closures)

Frequently Asked Questions

How much does a Dairy Queen franchise cost?

A Dairy Queen franchise requires a $25,000 franchise fee with total investment ranging from $623,000 to $2.8M. The midpoint investment is approximately $1.7M.

How much do Dairy Queen franchise owners make?

Based on the most recent FDD, the median Dairy Queen location generates $1.5M in annual revenue. With estimated industry margins of 13%, that translates to approximately $199,481 in EBITDA before debt service.

What is the Dairy Queen royalty rate?

Dairy Queen charges a 4% royalty on gross sales plus a 3.0% advertising fund, for a total ongoing fee burden of 7.0%.

Is a Dairy Queen franchise worth it?

Whether Dairy Queen is worth it depends on your market, experience, and financial goals. Key concerns include declining unit count (1 net closures). The brand has been contracting with 1 net closures. The SBA loan default rate is 0.0%. Review the latest FDD thoroughly and validate with existing franchisees before investing.

What is the Dairy Queen franchise SBA loan default rate?

Based on SBA loan data, Dairy Queen has a 0.0% default rate across 2 loans. This is below the overall franchise industry average.

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