A & W Restaurants vs Dairy Queen Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of A & W Restaurants vs Dairy Queen including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
A & W Restaurants Franchise
Dairy Queen Franchise
Investment $269,000 - $1,213,000$1,151,135 - $1,936,655
Franchise Fee $15,000 - $30,000$45,000
Royalty Fee 5%4%
Advertising Fee 5%5-6%
Year Founded 19191940
Year Franchised 19251944
Term Of Agreement 20 yearsVaries
Term Of Agreement 20 yearsVaries
Renewal Fee --


Business Experience Requirements
 
A & W Restaurants Franchise
Dairy Queen Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    A & W Restaurants Franchise
    Dairy Queen Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment No/NoNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    A & W Restaurants Franchise
    Dairy Queen Franchise
    Training Before your restaurant opens, we provide six weeks of intensive in-store training for you and, in some instances, your key management people. The training takes place at an established A&W restaurant, usually in the same province where the restaurant will be located. From being shown the secrets of battering and breading A&W's handmade onion rings, to learning detailed information about how to create an efficient operation and positive work environment, you'll gain the knowledge and the confidence to achieve success in your own restaurant.On-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support The moment you become an A&W franchisee, you can expect complete and unrivaled support for your business and the A&W brand, all with the sole purpose of helping you to succeed. Operational support As your A&W restaurant settles into its regular routine, A&W business managers provide ongoing guidance with operational aspects of your business such as staffing, cost management and local marketing. Our business managers are an extraordinarily experienced team of senior managers whose job is to help you succeed. You'll also be invited to attend regular regional meetings and national conventions, where you'll gain new knowledge and share ideas with senior management and other A&W franchisees. In no time, you'll become a part of our energetic, results-oriented A&W team. Internal communication With over 50 years of experience as a franchise company in Canada, we have learned that communication is a crucial element of any successful franchise organization. The A&W Xchange, a private intranet site developed exclusively for the use of A&W operators and Head Office personnel, provides an outstanding vehicle for daily, real-time communication within the A&W family. You will also have access to a toll-free line for use in contacting Head Office. Internal standards boards and councils Decisions about ongoing operating standards and menu content are conducted through our Standards Board, an executive body comprised of franchisees elected in their region and a number of senior corporate managers. In a similar way, decisions about advertising expenditures and national promotional programs are made by a group of elected franchisees and corporate personnel who serve on our National Advertising Advisory Council. These two bodies give strong evidence of how, by working together, we develop marketing and operational programs that will help grow your business.Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing

    Local store marketing is not just a catchphrase around the A&W family, but a way of life. Each restaurant is unique, and will have a marketing plan tailored to fit it. We understand that there is no one-size-fits-all approach. The A&W Marketing Team and each restaurant's Franchise Growth Leader work one-on-one with Franchise Partners to help develop a marketing strategy, budget, and implementation tactics.

    		Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    Operations Franchisees required to buy multiple units/master licenses

    Absentee ownership of franchise is NOT allowed.

    		 International franchisees required to buy multiple units/master licenses

    Number of employees needed to run franchised unit: 20 - 100

    Absentee ownership of franchise is allowed.

    Expansion Plans
     
    A & W Restaurants Franchise
    Dairy Queen Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About A & W Restaurants

    In 1919, our founder Roy Allen set up a roadside drink stand in Lodi, California to introduce a new beverage called "root beer" at a parade honoring returning World War I veterans. With his creation an instant success, Allen and partner Frank Wright named the beverage we know today as A&W Root Beer. Allen and Wright started franchising roadside stands, making A&W Restaurants the oldest franchise restaurant chain in the country. We are proud to stick to our roots and honor the past, while still growing with the changing times. We are committed to making it right, every time. Laughter, simple pleasures, and celebrations are all vital to A&W. Ask around, everyone has an A&W memory: first dates, baby mugs of Root Beer, high school sweethearts, and that perfect burger. We're more than just a place for a frosty mug of Root Beer and a great meal. We're A&W Restaurants, and we're inviting you to be part of something bigger than just owning a business. We're inviting you to be part of the A&W family. Create your very own A&W memories for yourself and your community. Consider this a unique opportunity to join a 96-year-old iconic American brand being run with the entrepreneurial spirit of a startup company. Since December 2011, when A&W was purchased by a partnership of domestic and international franchisees, A&W set its sight on becoming a world class franchise organization. Over the last 3 years, we've invested our resources in defining a competitive brand strategy that impacts all consumer touch points and has us well-positioned to capitalize on our heritage while remaining relevant to today's consumer. From new menu launches like our delicious Hand-Breaded Chicken Tenders and right-sized Mini Polar Swirls to our flexible localized marketing strategies, we are committed to innovation that will bring us another successful 101 years.

    The total investment necessary to begin operation, not including rent or land costs, is $886,000 to $1,397,000 for a Freestanding Restaurant;  416,000 to $977,000 for a Inline Restaurant; and $276,000 to $680,500 for a Captive Restaurant. This includes $15,000 to $30,000 plus an additional $35,000 if you agree to develop 3 restaurants or $50,000 if you agree to develop 5 restaurants that must be paid to the franchisor or its affiliates.

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    #7 in Canada's Top franchises.
    In Franchise Business Reviews Top 200.
    #290 in Franchise 500 for 2020.






    About Dairy Queen

    Frozen yogurt producer J.F. McCullough was trying different things with a formula for another solidified dairy item, originating from his conviction that dessert tasted better when it was delicate and served straight from the cooler, not solidified strong. With his formula culminated, McCullough and his child, Alex, persuaded one regarding their clients to hold a starting offer of the new delicate frozen yogurt, and more than 1,600 individuals appeared to attempt it. In light of that underlying achievement, the McCulloughs opened the primary Dairy Queen area in 1940 in Joliet, Illinois. The main stores sold just delicate serve frozen yogurt - in sundaes, bring home pints and quarts, and cones- - however throughout the years, an assortment of dessert treats were added to the menu, for example, banana parts and Dilly Bars. In the 1950s, some Dairy Queens started serving hot sustenance things. Today, stores framework wide have menus that incorporate franks, cheeseburgers and chicken tenders through Dairy Queen's Grill and Chill idea. The organization likewise offers a DQ Treat idea that offers both Dairy Queen's solidified treats and the sister organization's natural product beverages and smoothies.

    International Dairy Queen, Inc., (IDQ) has been creating “smiles and stories” for more than 70 years. Tracing its roots back to 1940, the company, is a leading quick service restaurant franchisor of delicious frozen treats and mouth-watering hot food items. The company is corporately based in Minneapolis, MN, is the parent company of American Dairy Queen Corporation, Orange Julius of America and Karmelkorn Shoppes Inc., which develops, licenses and services a system of more than 6,400 Dairy Queen® Orange Julius® and Karmelkorn® stores in the United States, Canada and over 25 other countries. All are part of the Berkshire Hathaway family, a company owned by Warren Buffett, the legendary investor and CEO of Berkshire Hathaway.

    The total investment necessary to begin operation of a single DQ Grill & Chill® franchise is $1,151,135-$1,936,655.
    This includes the $45,555 that must be paid to the franchisor or affiliate. In addition, if you enter into a multiple trade area reservation agreement, you will pay an initial franchise fee deposit determined by multiplying the number of restaurants you are granted the right to develop by $10,000.

    ""   "Entrepreneur

    #16 in Franchise 500 for 2020.
    #42 in Franchise 500 for 2021.