McDonald's vs Dairy Queen Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Dairy Queen Franchise
Investment $1,314,500 - $2,306,500$1,151,135 - $1,936,655
Franchise Fee $45,000$45,000
Royalty Fee 4%4%
Advertising Fee 4%+5-6%
Year Founded 19551940
Year Franchised 19551944
Term Of Agreement 20 yearsVaries
Term Of Agreement 20 yearsVaries
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Dairy Queen Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    McDonald's Franchise
    Dairy Queen Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    McDonald's Franchise
    Dairy Queen Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		 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
     
    McDonald's Franchise
    Dairy Queen Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021










    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.