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DQ Treat Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
To open a DQ Treat franchise, you should expect an initial investment ranging from $549,100 to $1,604,700. This includes a franchise fee of $25,000. It's crucial to have liquid cash available, typically between $175,000 and $125,000, to support your startup costs. Understanding these financial requirements will help you assess your readiness for franchise ownership.
Franchisees of DQ Treat are required to pay a royalty fee of 5% on gross sales, along with a marketing fee that ranges from 5% to 6%. These fees are essential for maintaining the brand's marketing efforts and operational support. Being aware of these ongoing costs will help you plan your financial strategy effectively.
The average annual revenue per unit for a DQ Treat franchise is approximately $332,928, with a median revenue of $600,000. However, revenues can vary significantly, with the lowest reported at $174,000 and the highest reaching $1,604,700. Understanding these revenue dynamics can assist potential franchisees in evaluating the profitability of their investment.
Franchisees can expect to reach breakeven within 12 months of operation, with an investment payback period also estimated at 12 months. This timeline indicates a relatively quick return on investment, making DQ Treat an appealing option for aspiring entrepreneurs looking to enter the franchise market.
DQ Treat Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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DQ Treat Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 828 | 785 | 748 |
Net Change YoY | -43 | -37 | |
Franchised Units | 828 | 785 | 748 |
Net Change YoY | -43 | -37 | |
Corporate Units | 0 | 0 | 0 |
Net Change YoY | 0 | 0 |
The DQ Treat franchise offers a range of initial investment options, with costs ranging from $549,100 to $1,604,700. This includes a franchise fee of $25,000, ensuring that potential franchisees are prepared for the financial commitment required to start their own DQ Treat location.
Franchisees can expect an average annual revenue of approximately $332,928, with a median annual revenue reaching up to $600,000. The revenue range varies significantly, with the lowest annual revenue recorded at $174,000 and the highest at $1,604,700, highlighting the potential for profitability in diverse markets.
Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee that ranges from 5% to 6%. These fees contribute to the overall brand strength and marketing efforts that help drive customer traffic to each DQ Treat location.
The average profit and loss statement indicates a gross profit margin of 55%, with operating expenses accounting for 48.5% of revenue. This leaves franchisees with an EBITDA of approximately 6.4%, providing a clear picture of financial performance and potential profitability.
Franchisees can anticipate a breakeven period of about 12 months, which is also the expected time frame for investment payback. This quick return on investment makes DQ Treat an appealing option for aspiring entrepreneurs looking to enter the franchise market.
As of 2023, DQ Treat has seen a steady decline in franchised units, dropping from 828 in 2021 to 748 in 2023. Understanding this trend is crucial for potential franchisees, as it may influence market saturation and competition in their chosen locations.
Frequently Asked Questions
The initial investment for a DQ Treat franchise ranges from $549,100 to $1,604,700, which includes the franchise fee and other startup costs.