WHO IS "INTERSTATE DAIRY QUEEN CORPORATION"?
In 1977 Interstate Dairy Queen Corporation (IDQC), a privately held corporation, purchased the perpetual and exclusive rights from American Dairy Queen Corporation (ADQ) to franchise restaurants along many interstate highways throughout the United States. We currently have more than 130 franchised restaurants in 19 states throughout the United States.
With more than 30 years of experience in development of co-branded units, we understand the unique needs of the highway traveler and can assist you in developing a site to appeal to this unique customer.
We franchise free-standing units as well as locations within c-stores, travel centers, strip centers, and malls. The DQ Grill & Chill® concept features burgers, fries, chicken, fish, hot dogs, salads, plus the Dairy Queen® soft-serve menu.
The DQ Limited Menu concept features the complete Dairy Queen soft-serve line, plus limited food items such as hot dogs.
WHO DETERMINES MY LOCATION?
Most prospective owners already have a specific location in mind when they contact IDQC. We will determine if the location is available for franchising as a Dairy Queen location. Please remember, IDQC must review each location and provide final approval prior to any franchise being granted.
ARE THERE MINIMUM LOT OR BUILDING SIZE REQUIREMENTS?
A free-standing Grill & Chill restaurant requires a minimum of 26,250 square feet of land. If the restaurant is part of a fuel center or a co-branded facility, you will need between 1200 and 2000 square feet of building space, excluding restrooms for the facility.
WHAT WILL MY DAIRY QUEEN FACILITY LOOK LIKE?
There are a variety of options to choose from. Most co-branded fuel center/Dairy Queen stores are custom designed to fit an existing or proposed facility. Free-standing restaurants are designed with specific Grill & Chill elements - making it one of the most attractive facilities within the away-from-home eating segment. Other facilities conform to "architectural design criteria" established by malls or other areas in which the facilities are being located. IDQC strongly recommends a drive-thru for all concepts.
HOW DO I OBTAIN BUILDING PLANS?
You may purchase building plans from any supplier, including one of the sources we can refer to you. Final plans must be approved by IDQC and ADQ.
WHAT WILL THE FACILITY COST?
The cost will depend on several factors, including the type and location of the facility. Build-outs for a fuel center location with an existing shell are running about $175 per square foot. Site work and construction costs to build a free-standing store generally range from $600,000 to $1,000,000 or more depending on the location, size of building, labor costs in the area and other factors.
WHAT EQUIPMENT WILL I NEED AND WHERE CAN I BUY IT?
If your location is available for development and you wish to proceed, we will arrange for the preparation of a preliminary layout of the proposed Dairy Queen restaurant. This will specify the type and exact placement of all equipment.
You may purchase the specified and approved equipment from any supplier, including one of the sources we can refer to you. Equipment costs will vary by concept and size of the facility. Typically, equipment costs run between $326,000 and $459,000, depending upon concept, location and other factors.
WHAT IS THE INITIAL FRANCHISE FEE?
The service and set-up fee for a DQ Grill & Chill restaurant or Limited Menu restaurant is $25,000.
WHAT IS THE ONGOING LICENSE FEE?
The ongoing license fee for a DQ Grill & Chill restaurant is 4% of gross sales (net of taxes), generally paid monthly. The ongoing license fee for a Limited Menu restaurant is 7% of gross sales (net of taxes), generally paid monthly.
IS THERE AN ONGOING ADVERTISING OR SALES PROMOTION FEE?
Yes there is. The sales promotion fee is not less than 3% or more than 6% of gross sales (net of sales taxes), generally paid monthly. The exact rate is determined annually by IDQC based on information provided by ADQ. It may be based on advertising and marketing needs in the area and the contribution level of the majority of stores within your Designated Marketing Area (DMA).
DO I BUY PRODUCTS AND SUPPLIES FROM IDQC?
No you don’t. IDQC will provide you a list of approved products and specifications. You can purchase these products from the many ADQ approved or authorized suppliers located throughout the United States.
HOW WILL I LEARN TO RUN A DAIRY QUEEN RESTAURANT?
ADQ conducts an extensive training program over a period of up to 5 weeks that you and/or your management team must attend. Tuition and travel expenses to attend this training program are your responsibility. Classes often fill early, so once you have made up your mind, you should register. Your Project Coordinator will assist you with this.
WILL SOMEONE HELP ME OPEN MY DAIRY QUEEN RESTAURANT?
ABSOLUTELY! Starting and opening a new business involves a great deal of detail, time, effort and responsibility. It’s crucial that the new store’s opening runs smoothly. You will be required to pay for the services of an experienced store opening team. The store opening team, usually two people, will be with you for about 14 days to assist with your opening. The first week involves refreshing and training you and your management staff in a "Train the Trainer" program, and helping you and your management staff to open your new store. The second week is then devoted to helping you and your management staff during actual operation of your store.
WHAT KIND OF ONGOING ASSISTANCE WILL I RECEIVE?
Being part of the Dairy Queen system provides numerous on-going support benefits. First, you will receive an Operations Manual that covers the many facets of your restaurant’s operation. Revisions to the manual are sent electronically as they are developed. You have easy access to the DQ website which provides news and information on new products and other happenings within the Dairy Queen system. Periodically, you will receive exclusive magazines and newsletters that contain useful management information and spotlight important happenings.
There are also national and regional conventions and meetings designed to keep you current on system happenings. This gives you a chance to discuss your issues with Dairy Queen owners from all over the world.
Last, but certainly not least, Business Consultants will meet with you and offer advice on customer convenience and service, product quality, management control, profit and loss reviews, training communications, and other facets of your business.
ARE THERE MINIMUM REQUIREMENTS THAT I MUST MEET?
Minimum requirement guidelines have been set for both the DQ Grill & Chill and Limited Menu concepts. These guidelines are:
DQ Grill & Chill
- Minimum Net worth: $750,000
- Liquid ("current") Assets: $400,000
- Minimum cash available for equity into project: $300,000 (actual project may require additional cash reserves)
- Management requirements: At least three - designated manager and two assistant managers
Limited Menu
- Minimum Net worth: $200,000
- Liquid ("current") Assets: $175,000
- Minimum cash available for equity into project: $125,000( actual project may require additional cash reserves)
- Management requirements: At least two - designated manager and one assistant manager
WHAT ARE THE NEXT STEPS?
If you meet the preliminary requirements outlined above, please complete the Application Form and submit to us. On receipt, your information will be reviewed and we will contact you to discuss the next steps in our franchise approval and restaurant development process. Please be sure to include a telephone number so we can contact you. Contact us today!
NOTICE OF AVAILABLE FDD FORMATS
We may send you our Franchise Disclosure Document by e-mail. That document is in PDF format. You will need to have Adobe Reader software installed on your computer to view the document and a printer to create a paper copy of the document. We may furnish you with our Franchise Disclosure Document in paper form, which we may either personally deliver to you or mail to you at our cost. For additional information, please call 301.587.4411 or click here.