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FranchiseVerdict

How Much Does a DQ Grill & Chill Franchise Cost?

Data from the 2022 Franchise Disclosure Document

Investment Summary

Total Investment

$1.5M – $2.4M

Franchise Fee

$45K

Royalty

4.0%

Ad Fund

5.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for DQ Grill & Chill is $45K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a DQ Grill & Chill franchise requires a total investment of $1.5M – $2.4M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $51K to $198K.

Ongoing Costs

Beyond the initial investment, DQ Grill & Chill franchisees pay ongoing fees. The royalty fee is 4.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 5.0% of gross sales.

Net Worth & Liquid Capital Requirements

DQ Grill & Chill requires working capital of $51K – $198K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to DQ Grill & Chill's Item 19 financial performance representation:

$1.4MAvg. Gross Sales

Median gross sales: $1.4M

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View DQ Grill & Chill?

SBA Loans Issued

1,750

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. DQ Grill & Chill has 1,750 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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