ScorecardWorth It?HistoryDatabaseCompareDistress Signals
QSRRevenue OnlyItem 19: ✗ Not DisclosedMedium Confidence · 75/100FDD data: 2024 · Aging

Dairy Queen Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Dairy Queen.

Based on 2024 FDD · 5 filings in corpus

FranchiseIQ Score
53
C
Moderate Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
59/100
5/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Dairy Queen franchise cost and make?

Based on FDDIQ's FDD corpus, a Dairy Queen franchise shows an estimated initial investment of $578K – $2.6M. Reported owner economics show $202K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$578K – $2.6M
Total initial investment
Profit / Revenue
$202K
FDD Item 19 signal
Payback Signal
7.8 years
Modeled return metric
SBA Default Rate
0.0%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse QSR franchises →Compare similar franchises →

Quick fee read: $25K franchise fee. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

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The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Dairy Queen Franchise Analysis

Dairy Queen requires a total initial investment of $578K to $2.6M (midpoint approximately $1.6M), with an initial franchise fee of $25K.

According to Item 19 of the 2024 FDD, the median revenue for Dairy Queen locations is $1.6M. The implied franchisee EBITDA is approximately $202K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 12.8% with a payback period of approximately 7.8 years. Note: Dairy Queen does not include a full Item 19 Financial Performance Representation in their FDD, limiting the ability to verify revenue claims independently.

Dairy Queen operates approximately 2 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.

Analysis based on 2024 FDD filing. FDDIQ Editorial Team · Methodology

Total Investment Range$578K – $2.6M
MinMid: $1.6MMax

Key Metrics

Franchise Fee
$25K
Royalty Rate
-
Ad Fund Rate
-
Total Burden
-
Royalty + ad fund
Units (2023)
2
Net Unit Growth
→ -
Year over year
2026 development incentive

Dairy Queen is paying operators to build Grill & Chill units

Dairy Queen added a 2026 cash development incentive for freestanding DQ Grill & Chill restaurants: $150,000 for a qualifying first opening and $200,000 for each additional freestanding restaurant developed within 18 months. The offer applies to qualifying U.S. and Canada franchise agreements valid through the end of 2026 and is aimed at food-focused Grill & Chill growth rather than treat-only stores.

First opening
$150,000
Lump-sum incentive for qualifying on-time opening
Follow-on stores
$200,000 each
Freestanding units opened within 18 months
Buyer implication
Model the build clock
Cash helps only if site, permits, staffing, and debt service work

Diligence note: the incentive offsets part of a capital-heavy Grill & Chill build, but it does not fix weak real estate, slow permitting, construction overruns, or a market that cannot support full QSR traffic. Compare the program against other current franchise incentives before signing a development schedule.

Cash-on-Cash Return
12.8%
Annual estimated return
Payback Period
7.8 yrs
Break-even timeline
SBA Default Rate
0.0%
vs ~7.2% industry avg
Median Revenue
$1.6M
Item 19 disclosed
Red Flags Assessment
HIGH: Missing Item 19 disclosure
HIGH ×1
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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Dairy Queen vs. QSR Average

MetricDairy QueenQSR Avg
SBA Default Rate0.0%▲9.4%
Cash-on-Cash Return12.8%▼14.2%
Total Investment$1.6M$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2022-2024). 2 loans across 1 states.

Default Rate
0.0%
Low Risk
Total SBA Loans
2
1 states
Total Loan Volume
$1.2M
SBA 7(a) approved
Avg Loan Size
$583K
Per franchisee
Loan Status Breakdown
0
Paid in Full (0%)
2
Currently Active
0
Charged Off
$0
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Dairy Queen vs Chick-fil-A, Inc.Dairy Queen vs McDonald'sDairy Queen vs Get Fried

Multi-Brand Operators · Who Runs This Brand

Fourteen Foods
View Hub
Indianapolis, IN· 240+ locations
240 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
Westar Capital
View Hub
Phoenix, AZ· 90+ locations
20 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
Explore all multi-brand franchise operators →

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K–$2.3M
McDonald's
Revenue Only
$1.5M–$2.7M
Get Fried
Revenue Only
$102K–$505K
Chick-fil-A, Inc.
$427K – $2.3M
McDonald's
$1.5M – $2.7M
Get Fried
$102K – $505K
MAGNOLIA BAKERY
$422K – $1.2M

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Questions to Ask Before You Sign

5 data-driven questions every Dairy Queen franchise buyer should ask.

  1. 1.What is Dairy Queen's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Dairy Queen disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Dairy Queen →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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