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Dairy Queen Franchise Cost by Format: Grill & Chill, DQ Treat and Conversions

Empty commercial lot with survey stakes and a restaurant shell under construction at sunset

The Dairy Queen franchise cost is $1,516,200 to $2,543,050 for a new DQ Grill & Chill, land excluded, including a $45,000 fee (2025 FDD, Item 7). A DQ Treat store runs $549,100 to $1,604,700.

Key takeaways

  • A new DQ Grill & Chill carries an Item 7 estimate of $1,516,200 to $2,543,050, and land is not in that total, per the DQ Grill & Chill Franchise Disclosure Document issued March 27, 2025, as amended April 23, 2025.
  • The DQ Treat estimate splits by site: $549,100 to $1,057,700 in a Captive-venue location and $848,450 to $1,604,700 on a Street location, per the DQ Treat FDD, Item 7.
  • Grill & Chill pays a 4% continuing license fee and a 5% to 6% sales promotion fee; DQ Treat pays 5% and 5% to 6% (Item 6 of each FDD).
  • Existing Dairy Queen operators who convert to Grill & Chill pay no initial franchise fee and no royalty on food sales for the first 36 full months (Item 5 and Item 6 note 2).
  • Item 20 counts 108, 101 and 113 transfers of direct-licensed Grill & Chill restaurants in 2022, 2023 and 2024, and Item 17 gives American Dairy Queen Corporation a right of first refusal on any sale.

Which Dairy Queen format are you pricing: Grill & Chill, Treat or a conversion?

American Dairy Queen Corporation (ADQ) files separate disclosure documents for the full-menu DQ Grill & Chill and the soft-serve-led DQ Treat, and it prices a conversion of an older Dairy Queen store through addenda inside the Grill & Chill filing. As of November 2026, the latest Clean FDDs in the Minnesota CARDS database for both formats carry the March 27, 2025 issuance date, amended April 23, 2025.

FormatWhat you sellInitial franchise feeItem 7 total (land excluded)TermSource
DQ Grill & Chill, new buildFull DQ soft-serve, treat, food and beverage menu with seating$45,000$1,516,200 to $2,543,05020 yearsGC FDD Items 5, 7, 17
DQ Treat, Street locationSoft-serve, treats, beverages, a limited number of approved food items$25,000$848,450 to $1,604,70015 yearsDT FDD Items 5, 7, 17
DQ Treat, Captive-venue (mall, airport, campus)Same menu; Captive-venue sites can also trade as DQ/Orange Julius$25,000$549,100 to $1,057,70015 yearsDT FDD Items 1, 5, 7
Conversion of a Limited Brazier, soft-serve-only or non-system food store to Grill & ChillFull Grill & Chill menu$0No separate total; Item 7 note 16 says you “may not incur all of the expenses”20 yearsGC FDD Items 1, 5, 7

A fourth program, the Texas DQ Restaurant, sells a different food menu called “Texas Country Food” and counted 568 franchises at December 31, 2024 (GC FDD, Item 1). It is offered only in Texas and is not priced in either document used here.

Line by line: where does the $1,516,200 to $2,543,050 Grill & Chill estimate go?

Building work and equipment account for $1,350,000 of the $1,516,200 low estimate and $2,100,000 of the $2,543,050 high estimate, so roughly 83% to 89% of the Grill & Chill budget is construction and kitchen gear. The $45,000 fee is under 3% of either end. The figures below are copied from the Item 7 table on page 18 of the 2025 filing.

DQ Grill and Chill FDD Item 7 table with building, equipment and total lines boxed in coral
Building ($800,000 to $1,400,000), equipment ($550,000 to $700,000) and the $1,516,200.00 to $2,543,050.00 total, DQ Grill & Chill FDD 2025, Item 7, page 18. Minnesota CARDS, accessed November 8, 2026.
Item 7 lineGrill & ChillTreat, StreetTreat, Captive-venue
Initial franchise fee$45,000$25,000$25,000
ALTA survey and/or site investigation report$0 to $5,000not a linenot a line
Initial training fees and costs$1,200 to $12,600$750 to $8,400$400 to $8,400
Travel and living for training$23,000 to $42,950$5,200 to $17,300$5,200 to $17,300
Building, construction and leasehold improvements$800,000 to $1,400,000$390,000 to $870,000$235,000 to $470,000
Prepaid rent and security depositnot a line$2,500 to $5,500$2,500 to $5,500
Construction consultation services$0 to $7,500$0 to $7,500$0 to $5,000
Building plans, design intent plans, architectural seal$15,000 to $60,000$10,000 to $50,000$7,000 to $20,000
Equipment, including signs and point-of-sale systems$550,000 to $700,000$360,000 to $420,000$220,000 to $360,000
Training inventory$6,000 to $12,000$4,000 to $8,000$3,000 to $6,000
Opening inventory$20,000 to $35,000$6,000 to $15,000$6,000 to $10,000
Utility deposits, licenses, government charges$4,000 to $17,000$3,000 to $15,000$3,000 to $7,500
Attorneys’ fees$1,000 to $8,000$1,000 to $8,000$1,000 to $8,000
Additional funds, 3 months$51,000 to $198,000$41,000 to $155,000$41,000 to $115,000
Total$1,516,200 to $2,543,050$848,450 to $1,604,700$549,100 to $1,057,700

Sources: DQ Grill & Chill FDD 2025, Item 7; DQ Treat FDD 2025, Item 7. We re-added every column and each matches the printed total. The same lines are in a CSV file published with this article (dq_item7_lines.csv).

Figure 2Dairy Queen Item 7 estimate by format and cost groupLow and high ends, land excluded, 2025 FDDs
Initial franchise feeBuilding, plans, consultation, surveyEquipment, signs, POSTraining, travel, inventory, rent deposit, deposits, attorneysAdditional funds, 3 months$0$750,000$1,500,000$2,250,000$3,000,000$815,000$550,000Grill & Chill low$1,472,500$700,000Grill & Chill high$400,000$360,000Treat Street low$927,500$420,000Treat Street high$242,000$220,000Treat Captive low$495,000$360,000Treat Captive high
Source: American Dairy Queen Corporation, DQ Grill & Chill and DQ Treat FDDs issued March 27, 2025, as amended April 23, 2025, Item 7.

Building and equipment dominate every format; Grill & Chill high end $2,543,050, Treat Captive-venue low end $549,100. Source: 2025 DQ Grill & Chill and DQ Treat FDDs, Item 7, accessed November 8, 2026.

Which Next Gen building moves the Grill & Chill number?

Item 7 note 7 names two freestanding prototypes. The Next Gen Core 34 is 1,938 square feet with about 34 seats on a lot of at least 25,830 square feet, and its site work and construction “generally ranges from $800,000 to $1,100,000 or more.” The Next Gen Core 46 is 2,208 square feet with about 46 seats on at least 32,026 square feet, at $800,000 to $1,200,000 or more.

Ownership also shifts the building line: leasing puts it at $350,000 to $500,000 or more, owning at $600,000 to $980,000 or more (note 7). For an owned site, note 10 puts equipment at $575,000 to $625,000 for a Core 34 and $625,000 to $650,000 for a Core 46.

What does a DQ Treat store cost in a mall versus on a street corner?

A Captive-venue DQ Treat store sits in roughly 600 to 1,400 square feet of leased space, while a Street store uses about 1,000 to 1,800 square feet and “will ordinarily be owned” (DQ Treat FDD, Item 7 note 6). That ownership difference is why the Street building line tops out at $870,000 against $470,000 in a mall.

  • Street land, if you buy it, “will generally vary from $250,000 to $620,000 or more” and is outside the total (note 6).
  • Captive-venue rent: ADQ estimates base rent for 750 square feet at $3,500 to $7,000 or more per month, plus about 8% to 12% of gross sales above a breakpoint (note 7).
  • DQ Treat requires 1 training attendee against 3 for Grill & Chill (Item 5); its travel estimate assumes 2 people and tops out at $17,300, against $42,950 for 3 (Item 7 note 5 of each FDD).
  • Orange Julius products in a Treat store carry a sales promotion fee of up to 6%, currently 5% on Street and 1.25% in Captive-venue sites (Item 6).

The two DQ Treat totals also differ in the reserve: $41,000 to $115,000 of additional funds for a Captive-venue store versus $41,000 to $155,000 on a Street site. Neither reserve includes hourly labor or food beyond opening inventory (note 14).

How does a conversion skip the $45,000 fee, and what does it pay instead?

Item 5 of the Grill & Chill FDD says “you do not pay an initial franchise fee if you are a conversion franchisee,” meaning an operator moving an existing Dairy Queen/Limited Brazier, soft-serve-only or non-system food (NSF) store onto the Grill & Chill menu. The trade-off is that the fees the $45,000 would have covered come back as separate charges.

  1. Construction consultation: ADQ waives this fee only for a full franchise fee payer, so conversions pay it (Item 7 note 8; line range $0 to $7,500).
  2. Design intent plans: a $3,000 fee applies when you pay a reduced or no franchise fee (note 9).
  3. Training: the free tuition for three people is tied to the full fee, so a converting operator pays $3,600 per person for the three-phase program (note 5).
  4. Equipment: note 10 tells conversion franchisees to “assume that your equipment costs will be similar to those required for a new build,” a $550,000 to $700,000 line.
Timeline of DQ conversion sales promotion fee steps from 1% to 3.5% and the 36-month food royalty waiver NSF conversion to DQ Grill & Chill: fee schedule by month 2025 DQ Grill & Chill FDD, Item 6 notes 2 and 3 (greater of existing rate or the step shown) Months 1 to 36: 0% royalty on food Month 37 on: 4% of Food Sales minus Base Food Sales Months 1 to 24 1% min $5,000 per year Months 25 to 48 1.5% min $6,500 per year Months 49 to 72 2% min $8,000 per year Months 73 to 96 2.5% min $9,500 per year Months 97 to 120 3% min $11,000 per year Month 121 on 3.5% or then current NMF rate Sales promotion program fee (share of Gross Sales, annual minimum) New-build comparison: 4% continuing license fee and 5% to 6% sales promotion fee from month 1. Initial franchise fee for a conversion: $0 (Item 5). Construction consultation and $3,000 plans fee apply (Item 7). Source: American Dairy Queen Corporation, DQ Grill & Chill FDD issued March 27, 2025, as amended April 23, 2025.
An NSF conversion pays a sales promotion fee of 1% rising to 3.5% by month 121 and no food royalty for 36 full months. Source: DQ Grill & Chill FDD 2025, Item 6 notes 2 and 3, accessed November 8, 2026.
NSF conversion periodSales promotion fee (greater of existing rate or)Annual minimumRoyalty on food sales
Months 1 to 241% of Gross Sales$5,000None (months 1 to 36)
Months 25 to 481.5%$6,500None to month 36, then 4% of Food Sales minus Base Food Sales
Months 49 to 722%$8,0004% of Food Sales minus Base Food Sales
Months 73 to 962.5%$9,500Same
Months 97 to 1203%$11,000Same
Month 121 onward3.5% or the then current NMF ratenone statedSame

Source: DQ Grill & Chill FDD 2025, Item 6 notes 2 and 3. Soft-serve products keep the royalty rate from the old agreement. A soft-serve-only or Limited Brazier conversion instead keeps its old soft-serve rate and pays 4% on everything else from the start.

What leaves each month: royalty, sales promotion and smaller Item 6 charges?

Both percentage fees are due by the 10th of each month on the prior month’s Gross Sales, which excludes sales tax and gift card sales. On a new Grill & Chill the two together come to 9% to 10% of Gross Sales; on a new DQ Treat they come to 10% to 11%. ADQ sets the sales promotion rate inside the 5% to 6% band with at least 90 days’ notice (Item 6).

Item 6 feeDQ Grill & ChillDQ TreatSource
Continuing license fee4% of Gross Sales5% of Gross SalesItem 6
Sales promotion program fee5% to 6%5% to 6% (Orange Julius items up to 6%)Item 6
Transfer fee$6,000, rising $500 on January 1, 2030 and every 5 years$6,000, same stepItem 6
Renewal fee$22,500$1,000 per renewal year, capped at $10,000Item 6
Gift card program3% of redemptions, about $200 a year by ADQ’s estimateCurrently 3% of redemptionsItem 6
Late payment18% a year interest; $50 per late report or paymentSame: 18% and $50Item 6
Audit costsIf Gross Sales were understated by 3% or moreSame 3% triggerItem 6

The Grill & Chill termination fee for a default equals two times the continuing license fee for the last 12 months of operation, with shorter formulas for young or nearly expired agreements (Item 6). A pre-April 2007 DQ Treat agreement renewed with a 6% royalty stays at 6% until the store is modernized, then drops to 5% (DQ Treat Item 6 note 2). For context across brands, our franchise royalty rate study codes the same Item 6 fields from hundreds of filings.

What sits outside Item 7: land, impact fees and lender equity?

Land is the largest omission. The Grill & Chill FDD estimates a land purchase at $250,000 to $800,000 (Item 7 note 7), and some jurisdictions charge “fees in excess of $100,000” for electrical, sewer, water and other connections (note 12). Item 7 note 15 adds that lenders “ordinarily require a 20% equity position on all leasehold improvements and possibly 25% on all equipment.”

Worked arithmetic (FDD inputs only)Grill & Chill lowGrill & Chill highTreat Street lowTreat Street high
Item 7 total$1,516,200$2,543,050$848,450$1,604,700
Plus land purchase (note 7 or note 6)$250,000$800,000$250,000$620,000
Total with purchased land$1,766,200$3,343,050$1,098,450$2,224,700
20% of building line$160,000$280,000$78,000$174,000
25% of equipment line$137,500$175,000$90,000$105,000
Lender equity on those two lines$297,500$455,000$168,000$279,000
ADQ minimum equity in project (Exhibit E)$300,000$300,000$125,000$125,000
ADQ minimum liquid assets (Exhibit E)$400,000$400,000$175,000$175,000

The equity rows apply the FDD’s own 20% and 25% lender percentages to the Item 7 building and equipment lines; they are not a loan quote. The Exhibit E franchise application lists the $400,000 liquid asset and $300,000 equity minimums for Grill & Chill and $175,000 and $125,000 for DQ Treat, and says actual equity “may be greater depending upon lender requirements.”

ADQ does not finance the fee, the site, equipment or leasehold work (Item 10), so the rest comes from third parties. In SBA’s 7(a) loan data, the DQ Grill & Chill Operating Agreement (franchise code S0480) shows 80 franchise loans from fiscal 2020 through June 30, 2026, 29 of them for a change of ownership (SBA 7(a) and 504 FOIA data). Our guide to franchise financing options covers how those loans are structured.

Who is the franchisor: Berkshire Hathaway, IDQ, ADQ or a territory operator?

Item 1 of the Grill & Chill FDD states the chain of ownership: ADQ, a Delaware corporation incorporated in 1962, “is a wholly-owned subsidiary of its parent corporation, International Dairy Queen, Inc.,” and IDQ “is a wholly-owned subsidiary of its parent corporation, Berkshire Hathaway, Inc.” of Omaha, Nebraska. ADQ signs your operating agreement; Berkshire Hathaway does not.

Diagram from Berkshire Hathaway to IDQ to ADQ, then direct franchises, territory operators and Dairy Queen Canada Who sells you a Dairy Queen franchise? (Item 1, units at 12/31/24) Berkshire Hathaway, Inc. International Dairy Queen, Inc. (IDQ) American Dairy Queen Corporation (ADQ), franchisor Direct ADQ franchises DQ Grill & Chill: 1,971 DQ Treat: 727 Texas DQ Restaurant: 568 Territory operators Standard Territory: 10 Urban Territory: 1 plus older-form operators Dairy Queen Canada Inc. area rights licensed by ADQ DQ Grill & Chill: 510 DQ Treat: 184 Orange Julius: 12 Example: Dairy Queen Montana / North Dakota LLC sells subfranchises under its own FDD Sources: DQ Grill & Chill FDD 2025, Item 1; Dairy Queen Montana / North Dakota FDD 2026, Item 1.
ADQ is the franchisor; Berkshire Hathaway owns it through IDQ; territory operators such as Dairy Queen Montana / North Dakota LLC subfranchise in their areas. Sources: DQ Grill & Chill FDD 2025 and DQ MT/ND FDD 2026, Item 1, accessed November 8, 2026.

In some states the seller is not ADQ at all. ADQ “issued standard and urban territory franchises” that let a territory operator subfranchise Dairy Queen stores inside a defined area; 10 Standard Territory and 1 Urban Territory franchises were operating at December 31, 2024 (Item 1). One example is Dairy Queen Montana / North Dakota LLC, whose FDD issued May 19, 2026 says it is “the only entity authorized” to subfranchise DQ businesses in Montana and North Dakota.

That filing also warns, in capitals, that “ADQ does not guarantee the performance of DQ MT/ND’s obligations to you.” Its cover page prices a new Grill & Chill at $1,664,700 to $2,793,700, which is a separate estimate from ADQ’s own Item 7, so a buyer in a territory-operator state should price from that operator’s FDD.

Entity (Item 1)RoleUnits at 12/31/24
Berkshire Hathaway, Inc.Parent of IDQnot a franchisor
International Dairy Queen, Inc.Parent of ADQ; limited product salesnot a franchisor
American Dairy Queen CorporationFranchisor: Grill & Chill, DQ Treat, Texas DQ1,971 Grill & Chill; 727 DQ Treat; 568 Texas DQ
Territory operatorsSubfranchise within an areaStandard Territory 10; Urban Territory 1
Dairy Queen Canada Inc.Area rights in Canada licensed from ADQ510 Grill & Chill; 184 DQ Treat; 12 Orange Julius
DQ Training Restaurants, LLCAffiliate that owns 2 Minnesota Grill & Chill restaurants2

Is there a Dairy Queen franchise for sale, and what does Item 17 let ADQ do?

Existing restaurants do change hands: Item 20 of the Grill & Chill FDD counts 108 transfers of direct-licensed restaurants in 2022, 101 in 2023 and 113 in 2024, against roughly 1,970 outlets. Every sale needs ADQ’s consent, a $6,000 transfer fee and a new operating agreement, and ADQ “can match an offer to purchase” under its right of first refusal (Item 17 n).

  1. Submit the transfer application with the $6,000 fee; ADQ returns it, less processing costs, if it refuses consent or buys the restaurant itself (Item 6).
  2. Wait for ADQ’s right of first refusal decision; in an insolvency or bankruptcy sale an appraiser sets the price (Item 17 n).
  3. Meet the buyer conditions in Item 17 m: training completed, all owners sign a guarantee, seller signs a release, and “facility improvements and modernization completed.”
  4. Sign ADQ’s then-current agreement, which “may have materially different terms, including higher or additional fees”; its term is the lesser of 20 years or the seller’s remaining term (Item 17 a).

The DQ Treat filing reports 43, 39 and 47 transfers in 2022 to 2024 across its direct-licensed DQ Treat, Limited Brazier and soft-serve-only stores, under the same $6,000 fee and right of first refusal. Our comparison of franchise transfer fees sets the $6,000 figure against other systems, and the general guide to buying a franchise for sale covers diligence on the seller’s records.

How many Dairy Queen locations opened, closed or changed hands from 2022 to 2024?

Direct-licensed Grill & Chill restaurants grew from 1,954 to 1,971 over three years, a net gain of 17, while 30 to 41 opened each year and 25 to 39 franchises were terminated each year (GC FDD, Item 20). The DQ Treat side shrank from 828 to 727 direct-licensed stores, and Texas DQ fell from 586 to 568.

Figure 5DQ Grill & Chill direct-licensed: openings, terminations, transfersItem 20, 2022 to 2024
012.52537.550382022412023302024
Source: American Dairy Queen Corporation, DQ Grill & Chill FDD issued March 27, 2025, as amended April 23, 2025, Item 20.

Transfers (108, 101, 113) outnumber openings and terminations each year for direct-licensed Grill & Chill restaurants. Source: DQ Grill & Chill FDD 2025, Item 20, accessed November 8, 2026.

Item 20 line (direct-licensed)202220232024Source
Grill & Chill openings384130GC FDD Item 20
Grill & Chill terminations253928GC FDD Item 20
Grill & Chill transfers108101113GC FDD Item 20
Grill & Chill outlets at year end (incl. 2 affiliate-owned)1,9671,9691,971GC FDD Item 20
DQ Treat group outlets at year end789751727DT FDD Item 20
DQ Treat group terminations312815DT FDD Item 20
Texas DQ outlets at year end585579568GC FDD Item 20

Item 20 stops at December 31, 2024, so it cannot show the 2026 Texas closures reported in the press; our restaurant franchise closures tracker covers that reporting. Item 12 matters here too: both FDDs say “you are not granted any minimum area or territory,” so a new DQ can open near yours. ADQ projected 38 new franchised Grill & Chill openings for 2025, with 26 signed agreements not yet open.

Matching your capital and site to a Dairy Queen format: decision table

Each row uses a threshold printed in the 2025 FDDs. The equity and liquidity minimums come from Exhibit E of the Grill & Chill filing, the site sizes from Item 7 notes, and the fee waivers from Item 5.

If your situation isThen the format to price firstThreshold that decides it
Liquid assets of $175,000 to under $400,000DQ TreatExhibit E: $175,000 liquid and $125,000 equity for Treat; $400,000 and $300,000 for Grill & Chill
A signed or likely lease in a mall, airport or campusDQ Treat, Captive-venue600 to 1,400 sq ft leased; Item 7 total $549,100 to $1,057,700
A freestanding lot of at least 25,830 sq ftGrill & Chill, Next Gen Core 341,938 sq ft building; construction $800,000 to $1,100,000 or more
A lot of at least 32,026 sq ft and plans for about 46 seatsGrill & Chill, Next Gen Core 462,208 sq ft; construction $800,000 to $1,200,000 or more
You already run a Limited Brazier, soft-serve-only or NSF Dairy QueenGrill & Chill conversion$0 franchise fee; food royalty waived for 36 full months
You plan two or more Grill & Chill restaurants as an entityMultiTRA$22,500 per opening up front, credited against each $45,000 fee; not open to individuals
Your market is Montana, North Dakota or another territory-operator areaThat operator’s subfranchisePrice from the operator’s own FDD (MT/ND Grill & Chill: $1,664,700 to $2,793,700)
You want to buy an operating restaurantTransfer$6,000 fee; ADQ right of first refusal; modernization before closing

Why do Dairy Queen cost figures online disagree?

Most published numbers trace to one of two documents and then drift. ADQ’s own franchise investment page, opened on November 8, 2026, lists an investment range of $1,510,100 to $2,550,100 and a $750,000 net worth requirement, while the 2025 Clean FDD prints $1,516,200 to $2,543,050 and asks for $300,000 of equity in Exhibit E.

Claim in circulationWhat the primary document saysSource
Total investment $1,510,100 to $2,550,100 (franchisor website, no FDD date)$1,516,200 to $2,543,050 in the 2025 Clean FDD; the website figure may reflect a later filing not posted in CARDS as a Clean FDD by November 8, 2026GC FDD Item 7
Core 34 is 1,946 sq ft; Core 46 is 2,207 sq ft (franchisor website)1,938 sq ft and 2,208 sq ftGC FDD Item 7 note 7
Fee “$25,000 to $35,000” for a Dairy Queen (directory profile)$45,000 for Grill & Chill; $25,000 for DQ TreatItem 5 of each FDD
Royalty “4-5%” (directory profile)4% for Grill & Chill, 5% for DQ TreatItem 6 of each FDD
Net worth $750,000 (franchisor website)Exhibit E sets liquid assets of $400,000 and equity in project of $300,000; no net worth figureGC FDD Exhibit E

Rules for what Item 7 must show sit in 16 CFR 436.5(g), which requires the “YOUR ESTIMATED INITIAL INVESTMENT” table and lets a franchisor add tables for different site types, the approach the DQ Treat filing takes. Our explainer on the franchise disclosure document walks through the other 22 Items.

How we compiled this

We read three Franchise Disclosure Documents downloaded from Minnesota CARDS on November 8, 2026: ADQ’s DQ Grill & Chill and DQ Treat FDDs issued March 27, 2025, as amended April 23, 2025, and the Dairy Queen Montana / North Dakota LLC FDD issued May 19, 2026. We also opened 16 CFR 436.5, ADQ’s franchise investment page and SBA loan data. Item 19 of the Grill & Chill FDD contains sales and expense schedules for newly built restaurants; we left those figures out under this site’s no-earnings rule, and the DQ Treat FDD has no Item 19 data. This page is not legal, financial or investment advice.

Unlike our category page on ice cream franchise costs, which compares several scoop-shop brands, this page stays inside the Dairy Queen filings.

Frequently asked questions

How much does a Dairy Queen franchise cost?

A new DQ Grill & Chill is estimated at $1,516,200 to $2,543,050, land excluded, in Item 7 of the 2025 FDD. A DQ Treat store is $848,450 to $1,604,700 on a Street site and $549,100 to $1,057,700 in a mall, airport or other Captive-venue location. Buying land adds $250,000 to $800,000 for Grill & Chill.

What is the Dairy Queen franchise fee?

Item 5 sets the initial franchise fee at $45,000 for a DQ Grill & Chill and $25,000 for a DQ Treat store. The first $10,000 is a non-refundable deposit paid with the application. Operators converting an existing Dairy Queen store, or relocating under ADQ’s relocation policy, pay no initial franchise fee.

Is Dairy Queen a franchise, and who owns it?

Yes. American Dairy Queen Corporation franchises DQ Grill & Chill, DQ Treat and Texas DQ restaurants and runs no company-owned Grill & Chill units itself; an affiliate owns 2 in Minnesota. Item 1 of the 2025 FDD says ADQ is wholly owned by International Dairy Queen, Inc., which is wholly owned by Berkshire Hathaway, Inc.

Can I buy a Dairy Queen that is for sale?

Yes, with ADQ’s consent. Item 20 counts 113 transfers of direct-licensed Grill & Chill restaurants in 2024. The buyer pays a $6,000 transfer fee, signs the then-current agreement and completes modernization, and ADQ may match the offer under its right of first refusal in Item 17. In territory-operator states the operator handles the sale.

Why are Dairy Queen franchise locations closing?

The FDD does not give reasons. Item 20 of the 2025 Grill & Chill FDD records 25, 39 and 28 terminations of direct-licensed restaurants in 2022 to 2024, while the DQ Treat group fell from 828 to 727 stores. Closures reported in 2026 fall after these tables, which end on December 31, 2024.

How much do Dairy Queen franchise owners make?

This site does not publish earnings figures. The Grill & Chill FDD has an Item 19 with Gross Sales and expense schedules for newly built restaurants; read it in the current FDD. Owner income depends on the 4% royalty and 5% to 6% marketing fee in Item 6, the Item 7 build cost, and debt service on that build.

How much cash do you need to open a Dairy Queen?

Exhibit E of the 2025 Grill & Chill FDD sets minimum liquid assets of $400,000 and equity in the project of $300,000 for a Grill & Chill, and $175,000 and $125,000 for a DQ Treat store. Item 7 note 15 adds that lenders often want 20% equity on leasehold improvements and possibly 25% on equipment.

Sources

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