DQ TreatFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A DQ Treat franchise requires a total initial investment of $363K – $1.2M, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 29 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $363K – $1.2M
- 68th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 828
- 92nd pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 29 SBA loans charged off, well below the 16% franchise average.
Franchising since 1962. Systems this mature have refined operations and brand recognition.
14 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $363K – $1.2M including a $25K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 39/100. SBA loan charge-off rate of 0.0% across 29 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 14 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- American Dairy Queen Corporation
- Parent company
- International Dairy Queen, Inc.
- Incorporated in
- DE
- HQ
- 8000 Tower, Suite 700, 8331 Norman Center Drive, Bloomington, Minnesota 55437
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $190.4M
- vs $224.7M prior year
Overview
About
DQ Treat franchisees operate soft-serve ice cream and frozen treat retail locations, managing daily customer service, product inventory, equipment maintenance, staffing, and local marketing. Franchisees pay 5% royalties on gross sales and operate within a 15-year agreement while competing in unprotected territories.
- CEO
- Troy A. Bader
- Headquarters
- MN
- Founded
- 1962
- FDD year
- 2022
- States available
- 43
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $41K | $155K |
| Equipment, build-out, other | $297K | $1.1M |
| Total initial investment | $363K | $1.2M |
Source: DQ Treat 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $363K – $1.2M
- Below avg, review vs category
- Liquid capital req'd
- $41K – $155K
- Below avg, review vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Training fee | $200 |
| Transfer fee | $6K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How DQ Treat Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 828
- Opened
- 4
- Last reporting year
- Closed
- 34
- Terminated
- 26
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -3.5%
- Net unit change last year
- 3-yr CAGR
- -6.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 50
- Transfer rate
- 6.0%
- Owners selling to other franchisees
- Continuity rate
- 96.1%
- Units that stayed open
- Termination rate
- 4.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 29
- Loan volume
- $18.1M
- Median loan
- $400K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into DQ Treat's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 29 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DQ Treat represents HIGH RISK due to shrinking franchise network, withheld financial performance data, active litigation suggesting operational dysfunction, unprotected territory, and unclear franchisor financial health.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 rating
- 01MINORDeclining unit count (-3.5% YoY) indicates system contraction and reduced franchisee success
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and hides performance reality
- 03HIGHMultiple litigation cases involving subcontractor disputes, encroachment conflicts, and contract termination suggest franchisor operational/payment issues
- 04MINORUnprotected territory creates direct competition risk between franchisees and potential encroachment by franchisor
- 05MEDHigh investment range ($363K-$1.2M) combined with undisclosed profitability creates severe ROI uncertainty
- 06HIGHGoing Concern = False is ambiguous; if this means financial distress, it signals franchisor viability risk
- 07MINORSubcontractor payment disputes (Denney Mechanical, Beristain Roofing) suggest franchisor cash flow or vendor management problems
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Litigation count | 14 |
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 142 hrs
- Training location
- On-site and corporate
- POS system
- ParTech / ParBrink
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ParTech / ParBrink
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DQ Treat · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DQ Treat franchise?
The total investment to open a DQ Treat franchise ranges from $363K – $1.2M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DQ Treat franchise owners earn?
DQ Treat does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is DQ Treat's franchise failure rate?
Based on SBA 7(a) loan data, DQ Treat has a charge-off rate of 0.0% across 29 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many DQ Treat franchise locations are there?
As of their most recent FDD filing, DQ Treat has 828 total units in the United States, including 828 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is DQ Treat a good franchise to buy?
FranchiseVerdict rates DQ Treat as a A-grade franchise with a risk score of 39 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.