About Dairy Queen of Virginia Franchise
Dairy Queen of Virginia operates subfranchise opportunities for DQ Treat stores and DQ Grill & Chill restaurants, offering the iconic Dairy Queen menu of soft serve treats, Blizzards, beverages, and a full range of food items.
The franchise fee is $35,000, and the brand has been franchising in Virginia since 1959.
The concept serves a broad customer base looking for everything from a quick dessert stop to a casual family meal.
Dairy Queen of Virginia Franchise Cost & Fees
Minimum Investment
$570K
Average Investment
$1.6M
Maximum Investment
$2.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4% to 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% to 6% of Gross Sales | National brand fund |
| Total Investment Range | $570,100 – $2,550,800 | Includes build-out, inventory, working capital |
The investment range of $570K–$2.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% to 6% of Gross Sales) and marketing fee (3% to 6% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $35,000 | $35,000 |
| Initial training program (for 2 to 4 trainees) | $3,600 | $10,800 |
| Management Training Readiness Assessment training (for 2 to 4 trainees) | $200 | $600 |
| SERVSAFE course (for 2 to 4 trainees) | $400 | $1,600 |
| Travel and living expenses (for 2-3 DQ Treat store trainees) | $5,200 | $14,100 |
| Travel and living expenses (for 2 to 4 DQ Grill & Chill trainees) | $16,000 | $50,800 |
| Building construction and leasehold improvements (DQ Treat store in captive-venue location) | $235,000 | $470,000 |
| Building construction and leasehold improvements (DQ Treat store with street location, excluding cost of land) | $390,000 | $870,000 |
| Building construction and leasehold improvements (DQ Grill & Chill restaurant, excluding cost of land) | $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 Treat store) | $7,000 | $38,000 |
| Building plans, design intent plans and architectural seal (DQ Grill & Chill restaurant) | $15,000 | $48,000 |
| Equipment and fixtures (including signs and EPOS system) (DQ Treat store in captive-venue location) | $220,000 | $360,000 |
| Equipment and fixtures (including signs and EPOS system) (DQ Treat store with street location) | $360,000 | $420,000 |
| Equipment and fixtures (including signs and EPOS system) (DQ Grill & Chill restaurant) | $575,000 | $700,000 |
| Credit card processing fees | $200 | $2,000 |
| Training inventory (DQ Treat store) | $2,000 | $6,000 |
| Training inventory (DQ Grill & Chill restaurant) | $6,000 | $17,000 |
| Opening inventory (DQ Treat store) | $5,000 | $12,000 |
| Opening inventory (DQ Grill & Chill restaurant) | $16,000 | $40,000 |
| Utility deposits, business licenses and government charges | $4,000 | $17,000 |
| Insurance | $6,000 | $20,000 |
| Attorneys’ fees | $4,000 | $8,000 |
| Additional funds (3 to 9 months) (DQ Treat store) | $40,000 | $155,000 |
| Additional funds (3 to 9 months) (DQ Grill & Chill restaurant) | $50,000 | $200,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,500 (plus $12,000 to $24,000 for ARD Program discount reimbursement charge if transferred within 4 years) |
| Renewal Fee | $2,500 |
| Technology Fee | About $1,200 to $1,600 annually (EPOS Software Support); $416 to $439 per month (ParBrink/Data Central software); $8 per terminal per month (Verifone encryption); $80 per device per 3-year warranty (Verifone warranty); $50 per month (Acumera firewall) |
| Audit Fee | Costs of audit if Gross Sales understated by 3% or more (including professional fees, travel, room, board, expenses) |
| Operational Program Fees | Will vary under circumstances |
| Termination Fee | 2 times the continuing license fee for the last 12 months of active operations (or calculated based on average monthly fees if less than 12 months or less than 24 months remain on term) |
| Interest and Late Fees | Lesser of 18% per annum or highest legal rate (plus up to $50 late fee per late report/payment) |
| Modernization Expenses | $0 to $101,100 or more (plus $9,500 to $34,000 or more for signage) |
| Gift Card Program | Currently 3% of total gift card redemption (about $200 per year per location) |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Management Skills and Professional Development Course | $200 per trainee |
| Training Materials | $150 to $500 |
| Training Cancellation or Substitution Fee | $150 or $1,000 |
| Additional Training Fees | Will vary under circumstances |
| Internet Connection | $10 to $80 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2.5 to 5.5 weeks |
| Classroom Training | 32 hours |
| On-the-Job Training | 142 to 245 hours |
| Training Location | Certified DQ locations and Minneapolis, MN (or other designated ADQ location) |
| Additional Training | Optional management skills and professional development courses are offered. Franchisees must replace managers/assistant managers with trained personnel if they leave. Additional training may be required at the franchisee's expense to cure operational defaults. The Controlling Owner must attend all meetings and sponsored events in their area or region. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees are granted the right to operate a single store or restaurant at a specific, authorized location. No minimum area or exclusive territory is granted. Franchisees may face competition from other subfranchisees, the franchisor, ADQ, their respective affiliates, or other distribution channels or brands controlled by them. There is no protected territory to exclude or control the development of future stores. Sales are restricted to the authorized location and approved channels, with no compensation for sales made by other DQ units or through other channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years or the term of the lease of the store or restaurant premises, whichever is shorter |
| Renewal Term | 1 additional term of 10 years or the term of the renewed lease, whichever is shorter |
| Renewal Fee | $2,500 |
| Renewal Conditions | Lease must be renewed; written notice of intent to renew 3-6 months before term end; sign current renewal operating agreement (terms may differ, including higher fees); comply with modernization requirements; be in good standing; provide proof of ability to maintain possession of premises; pay renewal fee; and franchisor must approve the location. |
| Transfer Fee | $5,500 |
| Transfer Conditions | Transferee must meet current requirements (financial, experience); transfer fee paid; all amounts owed by prior subfranchisee paid; required facility improvements made; training arranged; required guarantees signed; necessary financial reports/data prepared; general release signed by transferor; current operating agreement signed by new subfranchisee; and franchisor approval. |
| Termination for Cause | The franchisor can terminate the subfranchise if the franchisee defaults on the agreement. Curable defaults (e.g., false reports, failure to submit reports, non-payment, failure to abide by standards, bankruptcy filing) have 10 or 30 days to cure. Non-curable defaults (e.g., loss of premises, failure to repair/reopen after damage, voluntary abandonment, insolvency, intentional understatement of sales, three defaults in 12 months, or being a specially designated national) result in immediate termination. |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term of the agreement, the franchisee, designated manager, principal owner, or officer/director with 20%+ interest cannot directly or indirectly operate or hold interest in a 'Competitive Business' (quick service restaurant serving hamburgers without alcohol, or business generating >10% revenue from ice cream/frozen treats). After termination or expiration, a 1-year non-compete applies within 500 meters of a Street Location or within the same building/venue of a Captive-Venue Location for any Competitive Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | While individual franchisees are not required to personally participate in on-premises operations, it is strongly encouraged. A designated manager and 1-2 assistant managers (depending on store type) are required to devote their full time and attention to the day-to-day on-premises general management. A Controlling Owner is also required to actively direct business affairs and oversee general management. Neither the designated manager nor assistant managers may participate in the active operation or management of any other business. |
| Required Suppliers | ADQ has designated ParTech, Inc. (EPOS hardware/software), Restaurant Magic (back office software), Fiserv (payment card processing), Verifone (payment card data encryption services), ValueLink, LLC (gift cards/related services), Mobo Systems, Inc. aka Olo (DQ Mobile App system), and Acumera (managed firewall services). ADQ also designates single approved manufacturers/suppliers for soft drinks, 3rd party branded products, limited time offers/special promotions, certain equipment (including EPOS), products where ADQ receives no fee (other than marketing payments), and Orange Julius proprietary powders/frozen orange juice concentrate. |
| Supply Restrictions | Franchisees must use only products approved by the franchisor and ADQ that meet their specifications. ADQ has the right to designate a single approved manufacturer, supplier, or distributor for certain products, and for any products under a unified purchasing program. Product specifications are not made available to franchisees, but summary specifications can be provided to manufacturers for approval requests. |
| Franchisor Revenue from Suppliers | IDQ and its affiliates receive fees or payments from some 3rd party suppliers ranging from 0% to 10% of suppliers’ sales to franchisees or warehouses for items like products, ingredients, supplies, equipment, uniforms, signage, fixtures, furnishings, advertising, and sales promotion materials. USCI authorized warehouses pay a fee to USCI up to 0.5% of their gross sales of products. In 2022, IDQ derived $46,411,606 (about 20% of its total revenue) from net sales of products, marketing kits, real estate finance/rental fees, insurance, and supplier service fees. ADQ and its affiliates also received about $3,340,048 in 2022 from 3rd party suppliers for national/DMA advertising funds. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Dairy Queen of Virginia, Inc. does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations. American Dairy Queen Corporation (ADQ) also does not offer direct or indirect financing or guarantees. ADQ may arrange for third-party finance companies or banks to make financing programs available, typically involving referrals. There is no assurance that financing will be offered, and if it is, the financial institution independently sets the terms. Neither ADQ nor its affiliates receive payments for these referrals. |
Dairy Queen of Virginia Franchise Earnings — Item 19
Average Revenue
$1.5M
Median Revenue
$1.5M
Revenue Range
$713K – $2.8M
Sample Size
39 units
Past financial performance does not guarantee future results. Individual results will vary.
Dairy Queen of Virginia Litigation & Risk Flags
Clean Litigation RecordDairy Queen of Virginia has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
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 of Virginia System Growth
Total Units
89
Franchised
89
Company-Owned
0
Dairy Queen of Virginia currently operates 89 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 |
|---|---|---|---|
| 2021 | 1 | 1 | 93 |
| 2022 | 1 | 3 | 91 |
| 2023 | 0 | 2 | 89 |
Transfers: 4 | Closures: 2
State Registrations
Registered in 14 states: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, WISCONSIN
Franchisor Financials (Item 21)
Revenue
$1.6M
Net Income
$1.1M
Total Assets
$10.5M
Audited by PBMares, LLP for year ending February 28.
Dairy Queen of Virginia Franchise — FAQ
The total investment to open a Dairy Queen of Virginia franchise ranges from $570,100 to $2,550,800, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dairy Queen of Virginia charges a royalty fee of 4% to 6% of Gross Sales of gross sales, plus a 3% to 6% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dairy Queen of Virginia 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 of Virginia to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Dairy Queen of Virginia franchise owners report average revenue of $1.5M and median revenue of $1.5M. This is based on a sample of 39 units. Past performance does not guarantee future results.
Dairy Queen of Virginia has been franchising since 1959. The FDD shows an investment range of $570,100-$2,550,800, a 4% to 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $570,100 to $2,550,800 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 of Virginia 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 of Virginia or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com