FDDIndex 77 brands · 73 reports · last run 2026-09-05 02:30

Dairy Queen

American Dairy Queen Corporation · dessert · FDD 2026 · WI filing 640430 · effective 3/26/2026

Report being written
Investment$1,510,100to $2,550,100p.28
Fee$45,000p.21
Royalty + ad10.0%p.23
Item 19$1,485,731p.64
Units, 2025524p.83
3-yr growth-10.4%
Closures 20258.1%
Litigation9

Highlights

  • Every week, 10.0% of gross sales goes to the franchisor before rent, food or labor: royalty 4% of Gross Sales, advertising 5% - 6% of Gross Sales.p.23
  • Opening one unit is estimated at $1,510,100 to $2,550,100, including a $45,000 initial fee.p.28
  • Dairy Queen discloses unit performance in Item 19: Average Annual Gross Sales of $1,485,731.p.64
  • The system went from 585 outlets at the start of 2023 to 524 at the end of 2025, a net loss of 61.p.83
  • In 2025, closures of all kinds equalled 8.1% of the outlets open at the start of the year.
  • Item 3 discloses 9 matters.p.18

Tools, from this filing's numbers

Cash you would need to open

The filing's Item 7 range, $1,510,100 to $2,550,100, is an estimate for one unit including only its first months. Slide between the low and high cases and add the months of runway you want beyond that.

Monthly operating cash is taken as one-twelfth of your weekly-sales figure above times 52, a placeholder for rent, labor and food until you have your own budget.

$0Item 7 estimate at this point in the range
$03 months of operating cash
$0cash to have in hand

Where the units went in 2025

Every outlet that opened, and every one that left, drawn from Item 20 Table 3 to scale.p.83

46 terminated0 non-renewed0 reacquired0 ceased, other566start of 2025+4 opened524end of 2025

Total outlets, 2022 to 2025

2022585202357920245682025524

Compare Dairy Queen with another brand

Side by side, every figure cited.

Fees (Items 5 and 6)

Initial franchise fee, standard$45,000p.21
Royalty4% of Gross Salesp.23
Advertising fund5% - 6% of Gross Salesp.23
Technology feeheld for review

The filing lists every recurring and conditional fee in Item 6.

Estimated initial investment (Item 7)

ExpenditureLowHigh
Initial Franchise Fee(3)$45,000$45,000p.27
ALTA Survey(4) and/or Site Investigation Report (SIR)$0$10,000p.27
Initial Training Fees and Costs(5)$2,100$11,100p.27
Travel and Living Expenses for Training Programs(6)$0$31,500p.27
Building, Construction and Leasehold Improvements(7)$800,000$1,400,000p.27
Construction Consultation Services(8)$0$7,500p.27
Building Plans, Design Intent Plans and Architectural Seal(9)$15,000$60,000p.27
Equipment (includes signs and point-of-sale systems)(10)$550,000$700,000p.27
Training Inventory(11)$8,000$15,000p.27
Opening Inventory$25,000$40,000p.27
Utility Deposits, Business Licenses and Government Charges(12)$4,000$17,000p.28
Additional Funds - 3 Months(14)$51,000$198,000p.28
Attorneys' Fees(13)$10,000$15,000p.28
Total$1,510,100$2,550,100p.28

Revenue (Item 19)

Dairy Queen reports Average Annual Gross Sales of $1,485,731 across 286 outlets for 2025.p.66 What the figure measures, which units were excluded and what it leaves out are in the report.

Units (Item 20)

TypeYearStartEndNet
franchised2023585579-6p.83
company owned2023000p.83
total2023585579-6p.83
franchised2024579568-11p.83
company owned2024000p.83
total2024579568-11p.83
franchised2025568524-44p.83
company owned2025000p.83
total2025568524-44p.83

Openings and closures, system totals (Table 3)

YearStartOpenedTerminatedNon-renewedReacquiredCeased, otherEnd
202358339000577p.83
2024577314000566p.83
2025566446000524p.83

Litigation (Item 3)

9 pending cases described.p.18 4 cases brought by franchisees or former franchisees.p.18 Counts are of distinct matters as the filing describes them; the report carries each one in plain words.

Scorecard

Rank among the brands on this site that report the figure, on each list's own direction. No blended grade. How the lists work.

Cost to open$1,510,10059 of 67
Royalty plus ad fund10.0%39 of 54
Three-year unit growth-10.4%65 of 68
Closure rate, 20258.1%10 of 64, 1 = most
Discloses unit revenueyes
Litigation disclosed95 of 61, 1 = most

Source

Wisconsin Department of Financial Institutions franchise filing 640430, effective 3/26/2026, expires 3/26/2027. Extracted 2026-09-05 by two independent readers; only figures both agreed on, whose quoted words appear on the cited page, are shown. How this works.