DQ Grill & Chill
American Dairy Queen Corporation
Company Information
Unknown
American Dairy Queen Corporation (ADQ) is a Delaware corporation incorporated in 1962. ADQ’s principal business address is 7505 Metro Boulevard, Minneapolis, Minnesota 55439. ADQ does business under its corporate name and the trade names : “Dairy Queen” and “DQ”.
ADQ’s business includes administering its franchise system, establishing and conducting sales promotion programs for DQ® products, and providing various services to its franchisees (see Items 8 and 11). In addition, since ADQ’s incorporation, ADQ has operated DQ® restaurants and stores on an interim basis. ADQ does not operate any company-owned DQ Grill & Chill® restaurants as of the date of this disclosure document, although, as explained further below, ADQ’s affiliate, DQTR, owns and operates two DQ Grill & Chill® restaurants. In addition to the franchise offered under this franchise disclosure document, ADQ offers franchises for other concepts through separate franchise disclosure documents: • DQ® Treat. ADQ offers single unit franchises for the operation of DQ® Treat locations under the trade name DQ®/Dairy Queen® in Street locations and DQ®/Orange Julius® in Captive-venue locations. DQ® Treat locations sell Dairy Queen® soft-serve treat and beverage products and a limited number of approved food items. • Texas DQ® Restaurant. Due to historical factors unique to Texas, ADQ offers single and multiple unit franchises in Texasfor DQ® restaurants with a food menu different than the DQ Grill & Chill® food menu, which is called “Texas Country Food.” The DQ® restaurant multiple unit franchises permit a franchisee to establish and operate a specific number of DQ® restaurants at authorized locations in Texas within a specific geographic or trade area under separate franchise agreements for each restaurant.
9 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
4/10
Earning Transparency
7/10
Investment Accessibility
1/10
Summary of potential earnings
$354,798 / unit
Average Gross Profit During 2020Frozen Desserts
$1,232,792 / unit
Average Revenue During 2020Frozen Desserts
Franchise System Development
| Year | Units at Start of Year | Units Opened | Units Terminated | Non-Renewals | Re-Acquired by Franchisor | Ceased Operations | Units at End of Year |
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Distribution of DQ Grill & Chill Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $45,600 Maximum: $45,600
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $1,516,200 Maximum: $2,542,250
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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