Nathan's Famous vs Dairy Queen Franchise Comparison

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

Start-Up Costs and Fees

 
Nathan's Famous Franchise
Dairy Queen Franchise
Investment $43,000 - $1,071,360$1,151,135 - $1,936,655
Franchise Fee $30,000$45,000
Royalty Fee 5.5%4%
Advertising Fee 2%5-6%
Year Founded 19161940
Year Franchised 19881944
Term Of Agreement 20 yearsVaries
Term Of Agreement 20 yearsVaries
Renewal Fee 50% of franchise fee-


Business Experience Requirements

 
Nathan's Famous Franchise
Dairy Queen Franchise
Experience
  • Industry experience
  • General business experience

  • Industry experience
  • General business experience

  • Financing Options

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

    Training & Support

     
    Nathan's Famous 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, 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 Co-op advertisingAd 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: 14

    Absentee ownership of franchise is allowed. (65% 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

     
    Nathan's Famous Franchise
    Dairy Queen Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Nathan's Famous

    Franchising is a business concept that allows qualified investors to become part of an established, existing “system.” A good way to look at franchising is, you’re in business for yourself, but not by yourself. Strategically, this provides many benefits under a brand name that has consumer awareness and equity.
    Nathan’s has taken this basic premise and redefined it to exceed the most stringent business criteria of today’s investor.

    Nathan’s offers a wide range of restaurant designs and customized equipment, thereby offering business opportunities to qualified candidates regardless of space constraints or investment limitations.

    The estimated initial investment for a BMP Operation ranges from $43,000 to $86,300, including an initial license fee of $7,500. If you want to add an “Arthur Treacher’s” BMP Operation to your new or existing food service establishment, the additional estimated initial investment will be from $34,404 to $81,486, including an initial license fee of $7,500.

    "Top
    #78 in Gator's Top franchises
    #286 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.