About Dairy Queen Montana / North Dakota Franchise
Dairy Queen Montana / North Dakota LLC is a regional franchise entity for Dairy Queen, one of America's most iconic quick service restaurant brands.
The company has been offering franchise opportunities in Montana and North Dakota since 1947, making it one of the longest running franchise operations in the country.
Locations serve the full Dairy Queen menu of soft serve treats, Blizzards, burgers, chicken baskets, and other fan favorites.
Dairy Queen Montana / North Dakota Franchise Cost & Fees
Minimum Investment
$1.5M
Average Investment
$2.0M
Maximum Investment
$2.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 4% to 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% to 6% of your Gross Sales | National brand fund |
| Total Investment Range | $1,513,600 – $2,514,600 | Includes build-out, inventory, working capital |
The investment range of $1.5M–$2.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% to 5% of Gross Sales) and marketing fee (3% to 6% of your Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $25,000 | $25,000 |
| Management Training Readiness Assessment fee | $600 | $600 |
| Initial training fee | $10,200 | $10,200 |
| SERVSAFE course | $600 | $1,200 |
| Travel and living expenses (DQ Grill & Chill) | $24,000 | $38,100 |
| Building construction, site work and leasehold improvements (DQ Grill & Chill) | $800,000 | $1,400,000 |
| Prepaid rent and security deposit (DQ Treat store) | $2,500 | $5,500 |
| Building plans, design intent plans and architectural seal (DQ Grill & Chill) | $15,000 | $48,000 |
| Construction consultation services (DQ Grill & Chill) | $0 | $7,500 |
| Equipment and fixtures (including signs and EPOS system) (DQ Grill & Chill) | $550,000 | $650,000 |
| Credit card processing fees | $200 | $2,000 |
| Training inventory (DQ Grill & Chill) | $6,000 | $17,000 |
| Opening inventory (DQ Grill & Chill) | $16,000 | $40,000 |
| Opening team pre-opening and opening assistance | $0 | $25,000 |
| Utility deposits, business licenses and government charges | $4,000 | $17,000 |
| Insurance | $6,000 | $20,000 |
| Professional fees | $4,000 | $10,000 |
| Supplies and uniforms | $2,000 | $3,000 |
| Additional funds (3-6 months) (DQ Grill & Chill) | $50,000 | $200,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Currently, $5,500-$7,000 |
| Renewal Fee | $4,000 |
| Technology Fee | About $1,200-$1,600 annually for EPOS Software Support Program; $10 to $80 per month for Internet Connection |
| Audit Fee | Audit costs (if understatement of Gross Sales by 3% or more) |
| Operational Program Fees | Will vary under circumstances |
| Special Transfer | $50,000 |
| Additional Restaurant Development Discount Reimbursement Fee | $13,600 to $25,000 |
| Transfer Training Fee | $6,000-$9,900 |
| Managing Multiple Locations Training Fee | $1,300 per person |
| Termination Fee | One of the following: 2 times the continuing license fee due for the last 12 months of active operations; 24 times the average monthly continuing license fee when the location was open (if less than 12 months); or the number of months remaining times the average monthly continuing license fees due for the last 12 months of active operations (if less than 24 months remain). |
| Late Fees | $50 for each late report or payment; $250 for each written notice |
| Interest | Will vary under circumstances |
| Modernization Expenses | $0 to $111,000 or more each time you modernize, plus $9,500 to $34,000 or more for signage. |
| EPOS Software Support Program | About $1,200-$1,600 annually |
| Gift Card Program | Currently, 3% of total gift card redemption |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Management Skills and Development Course | Currently $200 per trainee |
| Training Materials | $150 to $500 |
| Training Cancellation or Substitution Fee | $100 to $900 |
| Additional Training Fees | Will vary under circumstances |
| Internet Connection | $10 to $80 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 5 weeks and 4 days, plus SERVSAFE course (for DQ Grill & Chill) |
| Classroom Training | 32 hours |
| On-the-Job Training | 245 hours (for DQ Grill & Chill) |
| Training Location | Phases 1 and 2 occur in DQ locations certified and designated by ADQ (may be in Billings, MT). Phase 3 occurs in a classroom in Bloomington, MN, or other location ADQ designates. |
| Additional Training | Managing Multiple Locations (MML) training program, optional management skills and professional development courses, in-restaurant or in-store training program, and additional EPOS training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees are granted the right to operate a single store at an authorized location approved by DQ MT/ND. There is no exclusive or protected territory, meaning franchisees may face competition from other subfranchisees, DQ MT/ND, ADQ, or their affiliates, and other distribution channels. Relocation is permitted within a 500-meter radius under specific conditions. DQ MT/ND and ADQ reserve the right to develop or franchise other locations nearby and distribute products through various channels without compensation to franchisees. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years or the term of the lease, whichever is shorter |
| Renewal Term | 1 additional term of 10 years or the term of the renewed lease, whichever is shorter |
| Renewal Fee | $4,000 |
| Renewal Conditions | Lease renewed; written notice of intent to renew 3-6 months before expiration; sign then-current renewal operating agreement (may have materially different terms/fees); complied with modernization requirements; in good standing for at least 6 months with no history of substantial non-compliance; written proof of ability to maintain possession of premises; pay renewal fee. |
| Transfer Fee | Currently, $5,500-$7,000 |
| Transfer Conditions | Transferee meets DQ MT/ND's current requirements (financial, managerial, operational experience); all amounts owed are paid; required facility improvements made; training arranged; required guarantees signed; necessary financial reports and data prepared; general release signed by transferor; current transfer fee paid; and current operating agreement signed by transferee. DQ MT/ND also retains a right of first refusal. |
| Termination for Cause | DQ MT/ND can terminate for default. Curable defaults (10 or 30 days to cure) include false reports, failure to submit lease, non-submission of reports, non-payment, failure to abide by standards, bankruptcy filing (30 days). Non-curable defaults (immediate termination) include unapproved site/construction delays, training failures, abandonment, insolvency, unapproved assignments, conviction of offense related to business, intentionally understating Gross Sales, 3 defaults within 12 months, or materially impairing goodwill (24 hours to cure). |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term, no direct or indirect involvement in any quick service restaurant serving hamburgers (without alcohol) or any business generating over 10% revenue from ice cream/frozen treats, other than an authorized Dairy Queen. Post-term, for 1 year, no direct or indirect involvement in a competing business within 500 meters of the restaurant (street location) or within the same building/venue (captive-venue). (Note: North Dakota law generally considers such covenants unenforceable). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While individual owners are not required to personally operate the business, a full-time Designated Manager and two Assistant Managers (for DQ Grill & Chill) or one Assistant Manager (for DQ Treat) are mandatory. These managers must devote their full time and attention to the day-to-day operations and meet specific experience and training requirements. A 'Controlling Owner' must also be designated to oversee business affairs and attend meetings. |
| Required Suppliers | DQ MT/ND and ADQ designate sole suppliers for EPOS hardware and software (ParTech, Inc.), back office software (Restaurant Magic), payment card processing (Fiserv), payment card data encryption (Verifone), gift cards (ValueLink, LLC), DQ Mobile App system (Mobo Systems, Inc. aka Olo), and managed firewall services (Netsurion). |
| Supply Restrictions | Franchisees must purchase only approved products that meet DQ MT/ND's and ADQ's specifications. ADQ reserves the right to designate a single approved manufacturer, supplier, or distributor for soft drinks, third-party branded products, limited-time offer products, equipment (including EPOS and computer systems), products where ADQ receives no fee (other than marketing payments), and Orange Julius proprietary powders and frozen orange juice concentrate. |
| Franchisor Revenue from Suppliers | In 2021, DQ MT/ND had no revenue from subfranchisees' required purchases. IDQ (ADQ's parent) derived $39,232,321 from net sales of products, marketing kits, real estate finance and rental fees, insurance, and supplier service fees, representing about 17% of its total revenue. IDQ and its affiliates receive fees or payments from some third-party suppliers ranging from 0% to 10% of sales to franchisees or warehouses for various items. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither DQ MT/ND nor any agent or affiliate offers direct or indirect financing, nor do they guarantee any notes, leases, or obligations. ADQ may periodically arrange for third-party finance companies or banks to make financing programs available, but these are referrals, and neither DQ MT/ND nor ADQ receive payments for these referrals. Franchisees are solely responsible for securing their own financing. |
Dairy Queen Montana / North Dakota Franchise Earnings — Item 19
Average Revenue
$1.5M
Median Revenue
$1.5M
Revenue Range
$763K – $2.5M
Sample Size
38 units
Past financial performance does not guarantee future results. Individual results will vary.
Dairy Queen Montana / North Dakota Litigation & Risk Flags
6 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.
Dairy Queen Montana / North Dakota System Growth
Total Units
70
Franchised
70
Company-Owned
0
Dairy Queen Montana / North Dakota currently operates 70 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 2 | 69 |
| 2020 | 2 | 1 | 70 |
| 2021 | 0 | 0 | 70 |
Transfers: 3 | Closures: 0
State Registrations
Registered in 3 states: MT, NY, ND
Dairy Queen Montana / North Dakota Franchise — FAQ
The total investment to open a Dairy Queen Montana / North Dakota franchise ranges from $1,513,600 to $2,514,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dairy Queen Montana / North Dakota charges a royalty fee of 4% to 5% of Gross Sales of gross sales, plus a 3% to 6% of your Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dairy Queen Montana / North Dakota 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 Dairy Queen Montana / North Dakota to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Dairy Queen Montana / North Dakota franchise owners report average revenue of $1.5M and median revenue of $1.5M. This is based on a sample of 38 units. Past performance does not guarantee future results.
Dairy Queen Montana / North Dakota has been franchising since 1947. The FDD shows an investment range of $1,513,600-$2,514,600, a 4% to 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 6 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 $25,000 and the total investment ranges from $1,513,600 to $2,514,600 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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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 Dairy Queen Montana / North Dakota and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dairy Queen Montana / North Dakota or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com