Smoothie King vs Dairy Queen Franchise Comparison

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

Start-Up Costs and Fees

 
Smoothie King Franchise
Dairy Queen Franchise
Investment $269,550 - $845,985 $1,151,135 - $1,936,655
Franchise Fee $30,000 $45,000
Royalty Fee 6% 4%
Advertising Fee 3% 5-6%
Year Founded 1987 1940
Year Franchised 1988 1944
Term Of Agreement 10 years Varies
Term Of Agreement 10 years Varies
Renewal Fee - -


Business Experience Requirements

 
Smoothie King Franchise
Dairy Queen Franchise
Experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience

  • Financing Options

     
    Smoothie King Franchise
    Dairy Queen Franchise
      In-House/3rd Party In-House/3rd Party
    Franchise Fees No/No No/Yes
    Start-up Costs No/Yes No/Yes
    Equipment No/Yes No/Yes
    Inventory No/Yes No/Yes
    Receivables No/No No/Yes
    Payroll No/No No/Yes

    Training & Support

     
    Smoothie King Franchise
    Dairy Queen Franchise
    Training - On-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives 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 slicks, National media Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    Operations 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 9

    Absentee ownership of franchise is allowed. (75% 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

     
    Smoothie King Franchise
    Dairy Queen Franchise
    US Expansion Yes Yes
    Canada Expansion No No
    International Expansion Yes Yes

    Start-Up Costs and Fees Mobile

    Investment
    Smoothie King Franchise
    $269,550 - $845,985
    Dairy Queen Franchise
    $1,151,135 - $1,936,655
    Franchise Fee
    Smoothie King Franchise
    $30,000
    Dairy Queen Franchise
    $45,000
    Royalty Fee
    Smoothie King Franchise
    6%
    Dairy Queen Franchise
    4%
    Advertising Fee
    Smoothie King Franchise
    3%
    Dairy Queen Franchise
    5-6%
    Year Founded
    Smoothie King Franchise
    1987
    Dairy Queen Franchise
    1940
    Year Franchised
    Smoothie King Franchise
    1988
    Dairy Queen Franchise
    1944
    Term Of Agreement
    Smoothie King Franchise
    10 years
    Dairy Queen Franchise
    Varies
    Renewal Fee
    Smoothie King Franchise
    -
    Dairy Queen Franchise
    -


    Business Experience Requirements

    Experience
    Smoothie King Franchise

  • General business experience
  • Marketing skills
  • Dairy Queen Franchise

  • Industry experience
  • General business experience

  • Financing Options

      In-House/3rd Party
    Franchise Fees
    Smoothie King Franchise
    No/No
    Dairy Queen Franchise
    No/Yes
    Start-up Costs
    Smoothie King Franchise
    No/Yes
    Dairy Queen Franchise
    No/Yes
    Equipment
    Smoothie King Franchise
    No/Yes
    Dairy Queen Franchise
    No/Yes
    Inventory
    Smoothie King Franchise
    No/Yes
    Dairy Queen Franchise
    No/Yes
    Receivables
    Smoothie King Franchise
    No/No
    Dairy Queen Franchise
    No/Yes
    Payroll
    Smoothie King Franchise
    No/No
    Dairy Queen Franchise
    No/Yes

    Training & Support

    Training
    Smoothie King Franchise
    -
    Dairy Queen Franchise
    On-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support
    Smoothie King Franchise
    Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Dairy Queen Franchise
    Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing
    Smoothie King Franchise
    Co-op advertising, Ad slicks, National media
    Dairy Queen Franchise
    Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    Operations
    Smoothie King Franchise
    60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 9

    Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

    Dairy Queen Franchise
    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

    US Expansion
    Smoothie King Franchise
    Yes
    Dairy Queen Franchise
    Yes
    Canada Expansion
    Smoothie King Franchise
    No
    Dairy Queen Franchise
    No
    International Expansion
    Smoothie King Franchise
    Yes
    Dairy Queen Franchise
    Yes

    Company Overviews

    About Smoothie King

    When visits to various doctors did little to relieve the allergies Steve Kuhnau was suffering from, the nurse began reading up on nutrition, hoping a change in diet would help his symptoms. Once he began eating fresh foods and cutting fat out of his diet, Kuhnau started feeling better. His next task was to find a way to tackle the midday fatigue caused by hypoglycemia. Using his nursing expertise and the drink mixing experience he gained as a soda jerk in high school, Kuhnau began experimenting with high protein drinks. The resulting product combined fresh fruits, vitamins and other supplements and inspired the creation of Kuhnau's company, Smoothie King.
    Each Smoothie King store sells smoothies and a variety of vitamins, minerals, low fat snacks and nutritional supplements. Offering 40 percent off its initial franchise fee agreements for the first 40 agreements in 2013 IN St. Louis.

    The total investment necessary to begin operation of a traditional Smoothie King Business ranges from for an end-cap or in-line location, $269,550 to $545,035, and for a free-standing drive-thru location, $577,100 to $845,985. This includes $28,250 to $36,990 that must be paid to the franchisor.
    If you sign an Area Development Agreement, you also must pay the franchisor a development fee of $12,500 for each Smoothie King franchise you commit to develop after the first franchise. You must develop a minimum of 5 Smoothie King Businesses under the Area Development Agreement.
    Veteran Incentives  20% off franchise fee
    ""  "Entrepreneur

    #14 in Franchise 500 for 2020.
    #19 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.