Rita's vs Dairy Queen Franchise Comparison

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

Start-Up Costs and Fees
 
Rita's Franchise
Dairy Queen Franchise
Investment $15,100 - $435,000$1,151,135 - $1,936,655
Franchise Fee $10,000 - $30,000$45,000
Royalty Fee 6.5%4%
Advertising Fee 3%5-6%
Year Founded 19841940
Year Franchised 19891944
Term Of Agreement 10 yearsVaries
Term Of Agreement 10 yearsVaries
Renewal Fee 50% of current franchise fee-


Business Experience Requirements
 
Rita's Franchise
Dairy Queen Franchise
Experience -
  • Industry experience
  • General business experience
    		•

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

    Training & Support
     
    Rita's Franchise
    Dairy Queen Franchise
    Training 5 days at Cool University and 4 days on siteOn-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support Cool Support Center, newsletter, meetings, toll-free phone line, grand opening, security/safety procedures, field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing Ad slicks, National media, Regional advertisingAd Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    Operations 50% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: average 2 full-time, 15 part-time

    		 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
     
    Rita's Franchise
    Dairy Queen Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Rita's

    From a small porch front in 1984 in Northeast Philadelphia and a seasonal phenomenon, Rita's continues to see unprecedented growth as it continues to grow across the nation becoming a year round spectacular with its cult-like following. Rita's - made fresh daily - Italian ice obsession is hitting everyone's taste buds and creating a passion not just for the brand but the opportunity to become a Rita's Italian ice franchise owner. It's no wonder we are wired for success and fueled up for our expansion not only across the nation, but internationally we are making our presence known. Rita's franchisees come from all walks of life with one thing in common - the desire to choose their own destiny with a proven system providing on-going support; not to mention all having a passion for Rita's cool treats and foregoing happiness. There's no better time than today to begin evaluating the Rita's business model. Why not get a taste of success and view our fresh and desirable products!


    The total investment necessary to begin operation of a standard Rita’s shop is between $175,500 and $435,000. These figures include between $50,000 to $55,000 that must be paid to the franchisor or its affiliate.
    The total investment necessary to begin operation of an express Rita’s shop is between $121,100 and $309,900. These figures include between $33,000 to $33,500 that must be paid to the franchisor or its affiliate.
    If you enter into an agreement for a standard Rita’s shop or express Rita’s shop, we may offer you the opportunity to enter into an addendum to operate a Rita’s satellite shop and/or a Rita’s mobile unit.
    The total investment necessary to begin operation of a Rita’s satellite shop is between $131,550 and $296,400. These figures include between $19,200 to $25,500 that must be paid to the franchisor or its affiliate.
    The total investment necessary to begin operation of a Rita’s mobile unit is between $15,100 and $144,600. These figures include between $10,000 to $13,000 that must be paid to the franchisor or its affiliate.

    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

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