Dairy Queen vs Carvel Franchise Comparison

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

Start-Up Costs and Fees
 
Dairy Queen Franchise
Carvel Franchise
Investment $1,151,135 - $1,936,655$250,600 - $415,500
Franchise Fee $45,000$30,000
Royalty Fee 4%$2.44/gal.
Advertising Fee 5-6%$2.13/gallon
Year Founded 19401934
Year Franchised 19441947
Term Of Agreement Varies20 years
Term Of Agreement Varies20 years
Renewal Fee -Then current fee


Business Experience Requirements
 
Dairy Queen Franchise
Carvel Franchise
Experience
  • Industry experience
  • General business experience

  • General business experience
    		•

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

    Training & Support
     
    Dairy Queen Franchise
    Carvel Franchise
    Training 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 Franchisee Intranet PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/appCo-op advertising, Ad slicks, Regional advertising
    Operations 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.

    		 International franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    Expansion Plans
     
    Dairy Queen Franchise
    Carvel Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    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.






    About Carvel

    In 1934 Tom Carvel opened his first ice cream shop in Hartsdale, New York. Over the years, he developed formulas and equipment for creating and serving his ice cream. The company started franchising in 1947, and by 1951 had opened 100 stores. Today the company distributes its line of ice cream, cakes, pies and other treats in its own locations and in stadiums, club stores and supermarkets.

    The total investment necessary to begin operation of a Shoppe selling a full range of Carvel® products (a “Full Shoppe”) ranges from $250,600 to $415,500. This includes $30,000 to $32,000 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a Shoppe selling selected Carvel® products (an “Express Shoppe”) ranges from $39,600 to $148,400.
    The total investment necessary to begin operation of an Express Shoppe within the space of another restaurant, food service facility, or business approved by the franchisor (a “Hosted Express Shoppe”) ranges from $33,100 to $66,500. These total investment estimates for Express Shoppes and Hosted Express Shoppes include $10,000 to $12,000 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a Shoppe in an ice cream truck (an “Ice Cream Truck”) is $95,050 to $195,000. This includes $5,000 to $7,000 that must be paid to the franchisor or their affiliates.

    "Entrepreneur
    #361 in Franchise 500 for 2020.
    #273 in Franchise 500 for 2021.