How to Franchise: Dairy Queen

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Finding sweet success in your sweet tooth?

Read below to know the franchising requirements and franchise fee of Dairy Queen and see how Dairy Queen can help you find your sweet success in business while simultaneously satisfying your sugar cravings.

About Dairy Queen

This sweet story of success of Dairy Queen began in 1938 when a father and son from Illinois, USA came up with a soft frozen dairy product, which was a unique product at that time. They asked a friend to run a 10-cent trial sale of this new product in his walk-in ice cream store. Just within two hours from its launching, the new dessert was sold out.

This American brand continues to be a leader in the food and ice cream industry and is hailed as one of the largest fast food systems in the world, with over 6,000 restaurants in the United States and in other countries.

Here in the Philippines, Dairy Queen opened its first branch in 2006. The country franchise is currently managed and owned by PPI Holdings, Inc., a company under the Araneta Group of Companies.

PPI Holdings also owns the Philippine franchises of foreign brands such as Pizza Hut and Taco Bell, which is also the reason why in most locations in the Philippines, these three stores (Taco Bell, Dairy Queen, and Pizza Hut) are typically located beside each other.

Dairy Queen Franchise Details

To interested franchisees, the Dairy Queen headquarters offers a multi-unit franchise, which means franchisees can get the rights to own multiple units in an exclusive territory or country.

In the case of the Philippines, however, the Araneta Group of Companies has already purchased the rights to own and operate the Dairy Queen business exclusively in the country. Dairy Queen in the Philippines, though, is still open to franchising, and prospective franchisees may contact PPI Holdings, via their contact information below, to inquire.

For those interested to franchise Dairy Queen in other foreign locations, the capital requirements and associated territory franchise fees are as follows.

Take note: this may be different from the Peso amounts of the franchise fee if you’re getting a franchise in the Philippines from PPI Holdings.

Dairy Queen Franchise Fee in other Countries

Dairy Queen’s franchise fee is between $25,000 to $35,000. This sounds affordable, but take note that there are monthly fees which you also have to pay, such as:

  • Ongoing Royalty Fee: 4-5% of gross monthly revenues
  • Ad Royalty Fee: 3-6% of gross monthly revenues

It is estimated that the total initial investment required to franchise Dairy Queen could range anywhere from US$356,450 to US$1,835,825.

In addition, franchisees are required to have a minimum Net Worth of US$ 750,000 and liquid cash requirement of US$400,000.

Advantages of obtaining the Dairy Queen Franchise

  1. Obtains exclusive rights to own and operate multiple units in different locations within a certain territory or country
  2. Gets financing options and support package from Dairy Queen
  3. Learn from the best practices of Dairy Queen, a pioneer in the franchising industry

Disadvantages of obtaining the Dairy Queen Franchise

  1. Huge capital investment and other fees prolong payback period
  2. Management experience in retail and food service is a must when planning to own and operate an international brand

Additional Contact Information

Interested to franchise Dairy Queen in the Philippines? You may contact the company through the details below.

PPI Holdings, Inc.

  • Address: 16/F Aurora Tower, Araneta Center Quezon City, Metro Manila
  • Website: www.dairyqueen.com.ph
  • Facebook page: https://www.facebook.com/dairyqueenphilippines

Looking to franchise food carts or restaurants in the Philippines? See this Complete list of Philippine companies available for Franchising

Franchises in the Philippines

Information and Image Sources: Official Dairy Queen Website (dairyqueen.com.ph)

About the Author

James Ryan Jonas teaches business strategy, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.1 Billion ($56 Million) worth of retirement funds on behalf of thousands of UP employees.
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2 thoughts on “How to Franchise: Dairy Queen”

  1. I’m Dennis Carlo C. Buendia, residing at Blk 41 Lot 27 50th st., Metro Gate, San Agustin1, Dasmarinas, Cavite. Im interested to franchise Dairy Queen Product in line area. The place that I preferred most is SM City Dasmarinas, Cavite. I believe that the place is a potential market for said franchise. Currently; it has a Baskin Robbins operating there. I hope you could give me feedback and or details on my intent.

    Reply

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