Dairy Queen Franchise

By: Cody Brautigan

History

• The soft serve formula was developed by John McCullough and his son Bradley.

• His friend Sheb Noble offered it in his store after being convinced by John.

• The first day of sales, Noble served 1600 servings.• They all decided to open up the first Dairy Queen

in 1940.• The building still stands as a landmark in

Kankakee, Illinois.

Products

• Dairy Queen offers the famous Blizzard.• It has been on the menu since 1985.• That year DQ sold 100 million Blizzards.• The flavors are Oreo, Mint Oreo, Chocolate Chip

Cookie Dough, M&M, Reese’s, Heath and Butter Finger and many more.

• In 1990, DQ released a healthier alternative known as Frozen Yogurt.

•

Company Status

• Ranked number 31.• DQ is a great franchise.• The past year, their stock has climbed $19,000

or 16.67%.• They have 5700 global locations.

Future Plans

• Future plans include: – Offer the Orange Julius nationwide.– Open 15 locations in Guatemala.

Donations/Charities

• DQ donates to The Children’s Miracle Network Hospital.

• DQ hosts Miracle treat day once a year.• Each Blizzard sold on that day DQ donates $1

to CMNH.• They raised $5 million this year.

How to purchase a DQ franchise

• You must get a license from a franchisor.• Then you buy a lot, the building and employ

workers.• DQ does not offer financing, you must get a

loan from a bank or third party investor.

Start-up Fees• $35,000 – Purchase franchise rights.• $1,075- 10,360 – Training and costs.• $15,000 – Travel and living expenses.• $300,000 – 900,000 – Building construction.• $0 - $7,500 – Consultant services.• $15,000 – 45,000 – Building plans.• $340,000 – 458,000 – Equipment.• $8,000 – 10,000 – Training inventory.• $10,000 – 14,500 – Opening inventory.• $4,000 – 17,000 – Utilities and government fees.• $1,000 – 7,500 – Attorney fees.• $50,000 – 197,300 – Additional funds. (3 months)• Total: $779,675 – 1,729,160.

Three Phases of Training

1. Product and equipment training.2. Systems and management training.3. People and profit training.

Ongoing fees

• The only fee is 4-5% royalty fees.

Sources

• Wikipedia • Entrepreneur.com