Dairy Queen

Founded: 1940 Franchising since: 1944
Ice cream manufacturer J.F. McCullough was experimenting with a recipe for a new frozen dairy product, stemming from his belief that ice cream tasted better when it was soft and served fresh from the freezer, not frozen solid. With his recipe perfected, McCullough and his son, Alex, convinced one of their customers to hold an introductory sale of the new soft ice cream, and more than 1,600 people showed up to try it.

Based on that initial success, the McCulloughs opened the first Dairy Queen location in 1940 in Joliet, Illinois. The first stores sold only soft-serve ice cream--in sundaes, take-home pints and quarts, and cones--but over the years, a variety of ice cream treats were added to the menu, such as banana splits and Dilly Bars.

In the 1950s, some Dairy Queens began serving hot food items. Today, stores system wide have menus that include hot dogs, hamburgers and chicken strips through Dairy Queen's Grill & Chill concept. The company also offers a DQ Orange Julius concept that offers both Dairy Queen's frozen treats and the sister company's fruit drinks and smoothies.

P.O. Box 390286 Minneapolis, Minnesota 55439-0286

Phone: (952)830-0200

Franchisor is a privately-held company with 320 employee(s); 33 employee(s) in franchise department.

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2009	4480	577	577	70
2008	4,551	577	491	70
2007	4,694	577	417	71
2006	4,743	575	352	69
2005	4,765	576	335	65

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Outside the U.S.: Asia, Canada, Central america, Middle east, Mexico, South america

Exclusive territories available.

Special Programs
Dairy Queen has been a sponsor of the Children's Miracle Network since 1985, raising more than $36 million for hospitalized children in the United States and Canada through various fund-raisers like golf tournaments and sundae sales.

Total investment: $700K-1.3M Franchise fee: $25K/35K

Ongoing royalty fee: 4-5% Term of agreement: Varies, renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	Yes
Startup Costs	No	Yes
Equipment	No	Yes
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Net worth requirement: $750K
Cash liquidity requirement: $400K
Business Experience:

• Industry experience
• General business experience

Operations

• Number of employees needed to run franchised unit: 20 - 40
• Absentee ownership of franchise is allowed.

Training

• Available at headquarters: 3 weeks
• At franchisee's location: Pre- & post-opening
• At existing DQ store : 2 weeks

Ongoing Support

• Newsletter
• Meetings
• Toll-free phone line
• Grand opening
• Field operations/evaluations
• Purchasing cooperatives

Marketing Support

• Co-op advertising
• Ad slicks
• National media
• Regional advertising

Other marketing support

• Local promotions program

Franchise 500® rank:
#16 (2009); #25 (2008); #30 (2006); #30 (2005);

Ranked #1 in category in:
2005;

America's Top Global Franchises:
#15 (2009); #23 (2008); #25 (2006); #28 (2005);