Dairy Queen Franchise Cost
If you want to start a business in the food industry but you do not know what particular niche to serve, you should consider opening a Dairy Queen Franchise.
Dairy Queen is a franchise company which sells mainly soft-serve ice creams.
If you want to start a Dairy Queen franchise, there are several things that you need to consider such as the nature of the business itself. You have to determine whether you have the right knowledge in doing a business in a certain industry. It is recommended that you familiarize your self with the things that are necessary in doing a certain business such as the terminologies used in the said industry.
It is also important that you know the history or background of the franchise company that you want to purchase a franchise from. Through this, you will be able to determine if the people who run the business are good or not. Whether you like it or not, you will need to communicate with these people when you do your business especially when you are just starting.
Dairy queen started in the year 1940 by the ice cream manufacturer JF McCullough. JF McCullough believed that ice creams, if served soft, will taste better. This is the reason why soft-served ice cream became popular. During the first day of the business, more than 1,600 customers lined up just to have their taste on the then new product.
It was in the year 1950s that Dairy Queen started to serve other types of foods; expanding its product choices. With these, customers will be able to choose among many food options and not just soft-served ice cream.
If you really want to purchase a franchise of Dairy Queen, the total investment that you need to put up is around $700,000 up to as much as $1,300,000. You also have to take note of the initial franchising fee of $20,000 to $30,000. The term of agreement varies depending on several factors. The royalty fee is at around 4 to 5% of the total profit.
In franchising, there is what we call “royalty fee”. This is the amount of money that goes to the franchise company from your total sales profit. In case that you are wondering why a certain percentage of the profit needs to go to the franchise company, this is because the franchise company has spent intensive working hours and money just to develop an effective marketing plan. The marketing plan is the reason on why you are actually earning profit. The company deserves that little percentage for its hard work.
The number of employees needed to operate a single franchise of Dairy Queen is 20 to 40.
And finally, Dairy queen will provide you the training and seminars that you need in order for you to enhance your knowledge of the business itself. This is also to ensure that you have the necessary knowledge before you start your own business.
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