DQ Treat Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
DQ Treat is the treat-only Dairy Queen format, serving soft-serve, Blizzards, sundaes, and frozen cakes without the full food menu. Franchisees run compact locations managing service, equipment, and staffing.
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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $363K – $1.2M
- 61st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 828
- 92nd pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $363K – $1.2M including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSFinancials are consolidated statements of International Dairy Queen, Inc. (parent of franchisor ADQ), a wholly owned subsidiary of Berkshire Hathaway Inc. Total revenues for FY2021 of $224,744K include service fees $167,579K, other fees and franchise sales $43,653K, sales of advertising kits $10,104K, sales of company-owned restaurants $3,265K, real estate finance and rental income $33K, and other $110K.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better). SBA loan charge-off rate of 0.0% across 29 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL14 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
Corporate structure & franchisor financials
- Legal entity
- American Dairy Queen Corporation
- Parent company
- International Dairy Queen, Inc.
- Ultimate parent
- Berkshire Hathaway, Inc.
- CEO title
- Director, Chief Executive Officer and President
- Troy A. Bader
- Incorporated in
- Delaware
- HQ
- 8000 Tower, Suite 700, 8331 Norman Center Drive, Bloomington, MN 55437
- Auditor
- Independent auditor (unnamed in Item 21; audited consolidated financial statements of IDQ)
- Audited financials
- Franchisor revenue
- $224.7M
- vs $190.4M prior year
Overview
About
- CEO
- Troy A. Bader
- Headquarters
- MN
- Founded
- 1962
- FDD year
- 2022
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 21% above the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $41K – $155K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · 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 | $3K |
| Transfer fee | $6K |
| Renewal fee | $10K |
| Inventory (initial) | $5K – $12K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
DQ Treat did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one DQ Treat unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
10%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Financials are consolidated statements of International Dairy Queen, Inc. (parent of franchisor ADQ), a wholly owned subsidiary of Berkshire Hathaway Inc. Total revenues for FY2021 of $224,744K include service fees $167,579K, other fees and franchise sales $43,653K, sales of advertising kits $10,104K, sales of company-owned restaurants $3,265K, real estate finance and rental income $33K, and other $110K.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -6.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How DQ Treat Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 828
- Opened
- 4
- Last reporting year
- Closed
- 0
- 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 (3-yr)
- -6.4%
- Net unit change over 3 years
- 3-yr CAGR
- -6.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 0
- Terminated (3yr)
- 26
- Non-renewed (3yr)
- 8
- Transfers (3yr)
- 50
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 12 · 43 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
43
states with franchisees (per FDD Item 12)
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
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 381
- 2.6 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 40% went to startups / new businesses, 60% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing DQ Treat franchisees
Showing 3 of 16 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Pending cases include subcontractor suits (Denney Mechanical, Beristain Roofing) alleging misrepresentation; ADQ v. Wineinger (declaratory judgment re transfer conditions); Oakland Family Restaurants v. ADQ (territory division/assignment). Concluded cases include settled class actions over flexed sales promotion fees, encroachment arbitration, wrongful termination disputes. Franchise-relationship actions: 3 ADQ enforcement actions (McMath x2, Yogikrupa).
Largest disclosed settlement: $425,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Independent auditor (unnamed in Item 21; audited consolidated financial statements of IDQ)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 70 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 |
| Governing law | State where authorized location is located |
| Litigation count | 14 |
View Item 3 litigation summary
Pending cases include subcontractor suits (Denney Mechanical, Beristain Roofing) alleging misrepresentation; ADQ v. Wineinger (declaratory judgment re transfer conditions); Oakland Family Restaurants v. ADQ (territory division/assignment). Concluded cases include settled class actions over flexed sales promotion fees, encroachment arbitration, wrongful termination disputes. Franchise-relationship actions: 3 ADQ enforcement actions (McMath x2, Yogikrupa).
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 142 hrs
- Training location
- DQ® locations certified/designated by ADQ (Phases 1-2); ADQ franchisee support center Minneapolis MN or other location (Phase 3)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee with ADQ approval
- Franchisor financing
- Offered
- Item 10
- POS system
- ParTech ParBrink (EPOS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ParTech ParBrink (EPOS)
Item 20 · call current owners
Franchisee Contacts
1,303 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 Item 19 in the DQ Treat FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the DQ Treat FDD and qualifies whose outlets they describe.
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 verdict score of 70 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.