About DQ Grill & Chill Franchise
DQ Grill & Chill is the full menu restaurant format of Dairy Queen, combining the brand's legendary frozen treats with a complete food menu of burgers, chicken, sandwiches, and sides.
Owned by International Dairy Queen, Inc., a subsidiary of Berkshire Hathaway, the concept has been franchising since 1962 and is one of the most recognized quick service restaurant brands in the world.
The franchise fee is $45,000.
DQ Grill & Chill Franchise Cost & Fees
Minimum Investment
$1.5M
Average Investment
$1.9M
Maximum Investment
$2.4M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% - 6% of Gross Sales | National brand fund |
| Total Investment Range | $1,461,200 – $2,426,990 | Includes build-out, inventory, working capital |
The investment range of $1.5M–$2.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (5% - 6% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| ALTA Survey and/or Site Investigation Report (SIR) | $0 | $5,000 |
| Initial Training Fees and Costs | $1,200 | $11,990 |
| Travel and Living Expenses for Training Programs | $23,000 | $38,500 |
| Building, Construction and Leasehold Improvements | $800,000 | $1,400,000 |
| Construction Consultation Services | $0 | $7,500 |
| Building Plans, Design Intent Plans and Architectural Seal | $15,000 | $45,000 |
| Equipment (includes signs and point-of-sale systems) | $500,000 | $600,000 |
| Training Inventory | $6,000 | $16,000 |
| Opening Inventory | $15,000 | $35,000 |
| Utility Deposits, Business Licenses and Government Charges | $4,000 | $17,000 |
| Attorneys’ Fees | $1,000 | $8,000 |
| Additional Funds - 3 Months | $51,000 | $198,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,500 |
| Renewal Fee | $22,500 |
| Audit Fee | Costs for the audit (including salaries, outside accountant and attorneys’ fees, copying costs, postage, travel, meals, and lodging) if understatement of Gross Sales by 3% or more, plus audit costs for any additional audits within 2 years. |
| Operational Program Fees | Will vary under circumstances |
| Termination Fee (for franchise agreement) | One of the following: (1) Two times the continuing license fee due for the last 12 months of active operations; (2) If the location did not operate for a full 12 months, 24 times the average monthly continuing license fee when location was open; or (3) If less than 24 months remain on the franchise agreement, the number of months remaining, times the average monthly continuing license fees due for the last 12 months of active operations. |
| Interest Expenses | 18% per annum or the maximum contract rate permitted by governing law |
| Late Fees | $50 per delinquent report or payment |
| Additional Training Fees | Will vary based on circumstances |
| Gift Card Program Fees | Currently, 3% of total gift card redemptions (estimated $200 per year per location) |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Training Materials | $150 - $500 |
| Training Cancellation or Trainee Substitution Fee | $100 - $900 |
| EPOS System Hardware Warranty Services | $40 to $130 a month |
| ParBrink and Restaurant Magic Software Monthly Service Fees | $408 to $430 a month |
| Credit Card Processing Services | Approximately 2% - 5% of total amount of each sale |
| TransArmor Solution (Credit Card Encryption) | $19.95 per month |
| Verifone Payment Card Data Encryption Services | Approximately $8 per terminal per month |
| Netsurion Managed Firewall Service | Approximately $50 per month |
| PCI Data Security Standards Compliance (Third Party Contractor) | Up to $100 per month (ongoing), $200 - $2,000 (initial) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 5 weeks and 4 days (2.5 weeks for Phase 1, 2.5 weeks for Phase 2, 4 days for Phase 3) |
| Classroom Training | 32 |
| On-the-Job Training | 245 |
| Training Location | Phases 1 and 2 occur in ADQ-certified DQ® locations (franchisee or affiliate-owned). Phase 3 occurs at ADQ’s franchisee support center or another designated location. |
| Additional Training | Franchisees may be required to attend additional training at their expense if operational standards are not met. Controlling owners must attend all meetings sponsored by ADQ in their area/region. Multi-unit franchisees' Designated Supervisory Executive and Supervisors have additional training requirements. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive with defined trade areas for multi-unit franchisees |
| Exclusive Territory | No |
| Description | Single unit franchisees are granted the right to operate at a single authorized location with no minimum area or territory. Multi-unit franchisees under a MultiTRA are granted a non-exclusive right to develop a specific number of restaurants within designated geographic trade areas. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 10 years or the remaining term of the lease, whichever is shorter |
| Renewal Fee | $22,500 |
| Renewal Conditions | Written notice of intent to renew, sign then-current franchise agreement (potentially with different terms/fees), comply with modernization, be in good standing, have right to possess premises, pay renewal fee, sign a general release, and ADQ approval of location. |
| Transfer Fee | $5,500 |
| Transfer Conditions | Transferee must meet ADQ's requirements (financial, managerial, operational), pay transfer fee, all amounts owed must be paid, compliance with franchise agreement, all owners of transferee sign guarantee, franchisee signs a general release, training requirements met, transferee signs then-current franchise agreement, facility improvements/modernization completed, franchisee agrees to post-termination obligations, and other reasonable conditions. |
| Termination for Cause | Defaults include false reports, failure to submit lease, late reports/payments, intentional understatement of sales, felony conviction, failing evaluations, confidentiality breaches, bankruptcy, loss of premises, abandonment, failure to reopen after damage/relocation, or a third default within 12 months. Cure periods are 24 hours (goodwill/safety threats), 10 days (reports/payments), or 30 days (other defaults). Some defaults lead to immediate termination without cure. |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term and for one year after termination/expiration, the franchisee and principal owners cannot directly or indirectly operate or hold interest in a 'Competitive Business' (quick service restaurant serving hamburgers but no alcohol, or a business generating >10% revenue from ice cream, yogurt, frozen custard, fruit-based beverages, soft-serve, or other frozen treats) within 500 meters of a Street Location or within the same building/venue of a Captive-venue Location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must operate the business under active and continuous supervision. If a business entity, one owner must oversee day-to-day operations. One designated manager and two assistant managers, who have completed ADQ's training, must devote full-time attention to on-premises management and cannot manage other businesses. Multi-unit franchisees must also designate a full-time senior executive and supervisors. |
| Required Suppliers | ParTech, Inc. (EPOS hardware and software); Restaurant Magic (back office software); Fiserv (payment card processing); Verifone (payment card data encryption); ValueLink, LLC (gift cards); Mobo Systems, Inc. aka Olo (DQ Mobile App system); Netsurion (managed firewall services). ADQ also designates single approved suppliers for soft drinks, third-party branded products, limited-time offer products, and certain equipment. |
| Supply Restrictions | Franchisees must use only ADQ-approved products, services, and equipment that meet ADQ's specifications and are supplied by ADQ-approved manufacturers, suppliers, or distributors. ADQ reserves the right to change approved products and update specifications periodically. |
| Franchisor Revenue from Suppliers | In 2021, IDQ derived $39,232,321 (17% of total revenues) from net sales of products, marketing kits, real estate finance/rental income, insurance, and supplier service fees. IDQ and its affiliates receive fees/payments from third-party suppliers ranging from 0% to 10% of sales to franchisees for various operational items. USCI authorized warehouses pay a fee of up to 0.5% of their gross sales of product moving through the DQ® system. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | ADQ and its affiliates generally do not offer financing. They may arrange to put franchisees in contact with third-party finance companies or banks, but these institutions independently establish terms, interest rates, and duration. ADQ and its affiliates receive no payments for these referrals. |
DQ Grill & Chill Franchise Earnings — Item 19
Average Revenue
$1.4M
Median Revenue
$1.4M
Revenue Range
$592K – $2.9M
Sample Size
129 units
Past financial performance does not guarantee future results. Individual results will vary.
DQ Grill & Chill Litigation & Risk Flags
4 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DQ Grill & Chill System Growth
Total Units
7152
Franchised
7150
Company-Owned
2
DQ Grill & Chill currently operates 7150 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 36 | 16 | 1913 |
| 2020 | 32 | 17 | 1928 |
| 2021 | 47 | 23 | 1952 |
Transfers: 280 | Closures: 56
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$224.7M
DQ Grill & Chill Franchise — FAQ
The total investment to open a DQ Grill & Chill franchise ranges from $1,461,200 to $2,426,990, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DQ Grill & Chill charges a royalty fee of 4% of Gross Sales of gross sales, plus a 5% - 6% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DQ Grill & Chill Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DQ Grill & Chill to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, DQ Grill & Chill franchise owners report average revenue of $1.4M and median revenue of $1.4M. This is based on a sample of 129 units. Past performance does not guarantee future results.
DQ Grill & Chill has been franchising since 1962. The FDD shows an investment range of $1,461,200-$2,426,990, a 4% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 4 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 and the total investment ranges from $1,461,200 to $2,426,990 depending on location size and market. A minimum of $400,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in DQ Grill & Chill?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DQ Grill & Chill and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DQ Grill & Chill or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com