About DQ Treat Franchise
DQ Treat is the frozen treats focused format of Dairy Queen, specializing in the brand's iconic Blizzards, sundaes, cones, shakes, and cakes.
Operated by International Dairy Queen, Inc., a subsidiary of Berkshire Hathaway, the DQ Treat concept has been franchising since 1962 and offers a streamlined version of the Dairy Queen experience centered entirely on frozen desserts.
The franchise fee is $25,000.
DQ Treat Franchise Cost & Fees
Minimum Investment
$363K
Average Investment
$799K
Maximum Investment
$1.2M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 6% of Gross Sales of Orange Julius® branded products; 5% - 6% of Gross Sales of all other products | National brand fund |
| Total Investment Range | $363,100 – $1,235,600 | Includes build-out, inventory, working capital |
The investment range of $363K–$1.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 6% of Gross Sales of Orange Julius® branded products; 5% - 6% of Gross Sales of all other products) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Initial Training Fees and Costs | $400 | $8,000 |
| Travel and Living Expenses for Training Programs | $5,200 | $9,600 |
| Building, Construction and Leasehold Improvements | $120,000 | $620,000 |
| Prepaid Rent and Security Deposit | $2,500 | $5,500 |
| Construction Consultation Services | $0 | $7,500 |
| Building Plans, Design Intent Plans and Architectural Seal | $7,000 | $35,000 |
| Equipment (includes signs and point-of-sale systems) | $150,000 | $329,000 |
| Training Inventory | $2,000 | $6,000 |
| Opening Inventory | $5,000 | $12,000 |
| Utility Deposits, Business Licenses and Government Charges | $3,000 | $15,000 |
| Attorneys’ Fees | $1,000 | $8,000 |
| Additional Funds - 3 Months | $41,000 | $155,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,500 |
| Renewal Fee | $1,000 times number of years under renewal term (but not to exceed $10,000) |
| Technology Fee | Monthly service fees for ParBrink software ($278-$300/month), Verifone payment card data encryption services (approx. $8/terminal/month), and Netsurion managed firewall services (approx. $50/month). |
| Audit Fee | Your contractual percentage continuing license fees and percentage sales promotion program fees times the amount of understated Gross Sales, plus any other amounts owed to us. If an initial evaluation or audit reveals an understatement of Gross Sales by 3% or more, you must pay all costs for the audit, including salaries, outside accountant and attorneys’ fees, copying costs, postage, travel, meals, and lodging. |
| Operational Program Fees | Will vary under circumstances |
| Lease-Required Sales Promotion Fees | Will vary under circumstances |
| Termination Fee | 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 |
| Sublease and Lease Administration Fee | $1,800 - $3,750 annually |
| Additional Training Fees | Will vary based on circumstances |
| Gift Card Program Fees | Currently, 3% of total gift card redemptions |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Training Materials | $150 - $500 |
| Training Cancellation or Trainee Substitution Fee | $100 - $900 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2.5 weeks for Phases 1 & 2, plus 4 days for Phase 3. Totaling 32 classroom hours and 142 on-the-job hours. |
| Classroom Training | 32 |
| On-the-Job Training | 142 |
| Training Location | Phases 1 and 2 occur in 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 undergo additional training at their expense to cure operational defaults. The controlling owner must attend all meetings sponsored by ADQ in their area or region, including marketing and operational meetings. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Site-only, Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees are granted the right to operate a single store at an authorized location consented to by ADQ, but no minimum area or exclusive territory is granted. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by ADQ. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | Shorter of 15 years or the remaining term of the lease |
| Renewal Fee | $1,000 times number of years under renewal term (but not to exceed $10,000) |
| Renewal Conditions | Give written notice of intent to renew; sign then-current form of franchise agreement (which may have materially different terms, including higher or additional fees); comply with modernization provisions; be in good standing with no history of substantial noncompliance; have the right to remain in possession of the restaurant premises throughout the renewal period; pay the renewal fee; sign a general release; and have the renewal restaurant location approved by ADQ. |
| Transfer Fee | $5,500 |
| Transfer Conditions | Transferee must meet ADQ's current requirements (financial, managerial, operational experience); pay the transfer fee; all amounts owed must be paid; franchisee must be in full compliance with the franchise agreement; all owners of transferee must sign a guarantee; franchisee must sign a general release; transferee must meet training requirements; transferee must sign ADQ's then-current franchise agreement (which may have materially different terms, including higher or additional fees); facility improvements and modernization must be completed; franchisee must agree to observe post-termination obligations; and other conditions reasonably required by ADQ. |
| Termination for Cause | ADQ can terminate for various defaults. Cure periods are: 24 hours for defaults materially impairing goodwill or posing a public health/safety threat; 10 days for failure to submit reports or pay amounts due; 30 days for other defaults. Immediate termination without cure is possible for loss of premises, failure to reopen after destruction/damage/relocation, voluntary abandonment, insolvency, conviction of an offense related to the restaurant, intentionally understating sales/fees, a third default within 12 months, or being a specially designated national/blocked person. |
| 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). This restriction applies within 500 meters of a Street location or within the same building/venue for a Captive-venue location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee is required to operate the DQ® Treat franchise under active and continuous supervision. If the franchisee is a business entity, one owner must oversee the general management of day-to-day operations. For a first DQ Treat location, a designated manager and one assistant manager must complete ADQ's training and devote full-time attention to on-premises management, without participating in other businesses. |
| Required Suppliers | ParTech, Inc. (EPOS hardware and software), Fiserv (payment card processing), Verifone (payment card data encryption), ValueLink, LLC (gift cards and related services), Mobo Systems, Inc. aka Olo (DQ Mobile App System), Netsurion (managed firewall services). |
| Supply Restrictions | Franchisees must use only ADQ-approved products, services, and equipment that meet 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), products where ADQ receives no fee (other than marketing payments), and Orange Julius® proprietary powders and frozen orange juice concentrate. |
| Franchisor Revenue from Suppliers | During the 2021 fiscal year, IDQ derived $39,232,321 from the net sale of products, marketing kits, real estate finance and rental income, insurance, and supplier service fees, representing 17% of IDQ’s total revenues of $224,744,303. IDQ and its affiliates receive fees and payments from third-party suppliers ranging from 0% to 10% of each supplier’s sales to franchisees or warehouses in the U.S. for various operational items. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | ADQ and its affiliates generally do not offer financing, but in rare cases, ADQ or DQF may enter into a prime lease with a landlord and sublease the premises to the franchisee. The sublease terms include monthly payments for minimum guaranteed rent, percentage rent, and additional monthly rent for leasehold improvements. Franchisees may finance preopening leasehold improvements over the first 5 years of the sublease term. |
DQ Treat Franchise Earnings — Item 19
DQ Treat does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
DQ Treat does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
DQ Treat 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 Treat System Growth
Total Units
828
Franchised
828
Company-Owned
0
DQ Treat currently operates 828 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 | 10 | 34 | 886 |
| 2020 | 0 | 28 | 858 |
| 2021 | 4 | 34 | 828 |
Transfers: 129 | Closures: 96
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 Treat Franchise — FAQ
The total investment to open a DQ Treat franchise ranges from $363,100 to $1,235,600, 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.
DQ Treat charges a royalty fee of 5% of Gross Sales of gross sales, plus a Up to 6% of Gross Sales of Orange Julius® branded products; 5% - 6% of Gross Sales of all other products contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DQ Treat 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 Treat to ensure you have the most up-to-date version.
DQ Treat does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
DQ Treat has been franchising since 1962. The FDD shows an investment range of $363,100-$1,235,600, a 5% 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 $25,000 and the total investment ranges from $363,100 to $1,235,600 depending on location size and market. A minimum of $175,000 in liquid capital is required. 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 DQ Treat 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 Treat or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com