What Are the Terms of Agreement for Dairy Queen

When it comes to participating in any business, it is crucial to understand the terms of agreement. The same is true for franchises like Dairy Queen. If you are considering investing in or already own a Dairy Queen franchise, it is important to have a clear understanding of the terms of agreement.

Dairy Queen is one of the most beloved ice cream and fast food chains in the world. Founded in 1940, this chain is known for its delicious soft serve ice cream, signature Blizzard treats, and various food items like burgers, hot dogs, and more.

To become a Dairy Queen franchisee, you must first meet certain requirements. These requirements include a net worth of at least $750,000 and liquid assets of at least $400,000. Additionally, Dairy Queen expects its franchisees to have excellent management, communication, and customer service skills.

Once you meet these requirements, you can begin the process of applying for a Dairy Queen franchise. This process includes submitting a franchise application, attending a Discovery Day meeting, and ultimately signing a franchise agreement.

The terms of agreement for a Dairy Queen franchise are extensive and cover many aspects of the business. Here are some of the most important terms to keep in mind:

– Term: The initial term of the agreement is typically 20 years, with an option to renew for an additional 10 years.

– Royalties: Dairy Queen franchisees must pay a 4% royalty fee on gross sales to the company. This fee covers a variety of expenses, including ongoing support, training, and marketing.

– Marketing Fund: In addition to the royalty fee, franchisees are required to contribute to a marketing fund. This fund covers national and regional advertising campaigns.

– Operating Standards: To ensure consistency and quality across all Dairy Queen locations, franchisees must adhere to strict operating standards. These standards cover everything from food preparation to employee uniforms.

– Territory: Each franchisee is granted a specific territory in which to operate their business. This territory is typically defined by zip code or geographical area.

– Renewal: To renew the franchise agreement, franchisees must meet certain requirements, including a satisfactory review of their business operations and compliance with operating standards.

These are just a few of the key terms of agreement for Dairy Queen franchises. It is important to thoroughly review the franchise agreement and ensure that you understand all of the terms before signing.

In conclusion, investing in a Dairy Queen franchise can be a rewarding and profitable business opportunity. However, it is essential to understand the terms of agreement to ensure a successful partnership with the company. By familiarizing yourself with the terms and requirements, you can make an informed decision about whether a Dairy Queen franchise is right for you.

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