DQ Grill & Chill Franchise Prices, Charges, Revenues, Income (2023 Overview)

On this unique Franchise Chatter FDD Speak put up, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a DQ Grill & Chill franchise, based mostly on Merchandise 7 of the corporate’s 2023 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising and marketing payment for a DQ Grill & Chill franchise, based mostly on Gadgets 5 and 6 of the corporate’s 2023 FDD

Part III – Variety of franchised and company-owned DQ Grill & Chill retailers firstly of the yr and the top of the yr for 2020, 2021, and 2022, based mostly on Merchandise 20 of the corporate’s 2023 FDD

Part IV – Information updates on the DQ Grill & Chill franchise alternative

Part V – Presentation and evaluation of DQ Grill & Chill’s monetary efficiency representations (common revenues and/or earnings), based mostly on Merchandise 19 of the corporate’s 2023 FDD, together with data on the:

• 2019, 2020, 2021, and 2022 common, median, excessive, and low product sales for the DQ Grill & Chill eating places that had been newly constructed freestanding eating places developed beneath American Dairy Queen’s (ADQ’s) new or extra restaurant growth packages; had been developed and first opened for enterprise between January 1, 2012 and December 31, 2021; had been operated and reported gross sales information to ADQ for all 12 months of the famous yr; and are franchisee owned and operated

• 2019, 2020, 2021, and 2022 common product sales, value of products, labor, restaurant controllables, and manageable revenue for the DQ Grill & Chill eating places that had been newly constructed freestanding eating places developed beneath ADQ’s new or extra restaurant growth packages; had been developed and first opened for enterprise between January 1, 2012 and December 31, 2021; had been operated and reported gross sales information to ADQ for all 12 months of the famous yr; are franchisee owned and operated; and submitted usable revenue and loss statements to ADQ

Part VI – Key ratios, comparables, computations, and analyses for the DQ Grill & Chill franchise alternative (unique content material for Platinum subscribers)

Part I – DQ Grill & Chill Franchise Prices

• Preliminary Franchise Payment:  $45,000
• ALTA Survey and/or Web site Investigation Report (SIR):  $0 to $5,000
• Preliminary Coaching Charges and Prices:  $1,200 to $11,800
• Journey and Residing Bills for Coaching Applications:  $23,000 to $42,950
• Constructing, Development, and Leasehold Enhancements:  $800,000 to $1,400,000
• Development Session Companies:  $0 to $7,500
• Constructing Plans, Design Intent Plans, and Architectural Seal:  $15,000 to $45,000
• Tools (contains indicators and point-of-sale programs):  $550,000 to $700,000
• Coaching Stock:  $6,000 to $16,000
• Opening Stock:  $15,000 to $35,000
• Utility Deposits, Enterprise Licenses, and Authorities Costs:  $4,000 to $17,000
• Attorneys’ Charges:  $1,000 to $8,000
• Further Funds for 3 Months:  $51,000 to $198,000
• Whole Estimated DQ Grill & Chill Franchise Prices:  $1,511,200 to $2,531,250

Part II – DQ Grill & Chill’s Preliminary Franchise Payment, Royalty Payment, and Advertising Payment

• Preliminary Franchise Payment:  $45,000
• Persevering with License Payment:  4% of Gross Gross sales
• Gross sales Promotion Program Payment:  5% to six% of Gross Gross sales

Part III – Variety of Franchised and Firm-Owned DQ Grill & Chill Retailers

Franchised

2020

• Retailers on the Begin of the 12 months:  1,913
• Retailers on the Finish of the 12 months:  1,926
• Web Change:  +13

2021

• Retailers on the Begin of the 12 months:  1,926
• Retailers on the Finish of the 12 months:  1,952
• Web Change:  +26

2022

• Retailers on the Begin of the 12 months:  1,952
• Retailers on the Finish of the 12 months:  1,965
• Web Change:  +13

Firm-Owned

2020

• Retailers on the Begin of the 12 months:  2
• Retailers on the Finish of the 12 months:  2
• Web Change:  0

2021

• Retailers on the Begin of the 12 months:  2
• Retailers on the Finish of the 12 months:  2
• Web Change:  0

2022

• Retailers on the Begin of the 12 months:  2
• Retailers on the Finish of the 12 months:  2
• Web Change:  0

Part IV – Information Updates on the DQ Grill & Chill Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the DQ Grill & Chill Franchise (Merchandise 19, 2023 FDD)

• Schedules A and B disclose details about DQ Grill & Chill eating places that:

• had been newly constructed freestanding eating places developed beneath American Dairy Queen’s (ADQ’s) new or extra restaurant growth packages;
• had been developed and first opened for enterprise between January 1, 2012 and December 31, 2021;
• had been operated and reported gross sales information to ADQ for all 12 months of the famous yr; and
• are franchisee owned and operated.

• This monetary efficiency illustration doesn’t embody details about:

• (1) new DQ eating places developed in Texas (which have the “Texas County Meals” cooked meals menu and are provided beneath a separate disclosure doc);
• (2) present DQ eating places which have transformed to the DQ Grill & Chill restaurant’s facility design, menu, and trademark by reworking an present DQ restaurant or changing an present DQ restaurant with a brand new DQ Grill & Chill restaurant design facility both on the identical website or at a brand new location;
• (3) new DQ Grill & Chill eating places that had been opened in a gasoline middle or different non-traditional location inside a bunch constructing comparable to a ferry terminal or mall; or
• (4) new DQ Grill & Chill eating places that had been opened beneath a developmental rights contract or a franchise settlement granted by a territory operator.

• Schedule A presents Gross Gross sales for all areas that meet the factors above for inclusion on this monetary efficiency illustration.

• Schedule B contains data on sure classes of bills and manageable revenue for a subset of the areas listed in Schedule A, based mostly on the usable revenue and loss statements (“P&Ls”) these areas submitted to ADQ for the years 2019 by means of 2022.

• The information in schedule A relies on gross sales experiences submitted to ADQ by franchisees of the eating places included within the schedule and the information in schedule B relies on data submitted on P&Ls from franchisees of the eating places included within the schedule.

• ADQ has not audited or independently verified the leads to the P&Ls or gross sales experiences.

Schedule A – Gross Gross sales for All Places That Meet the Standards for Inclusion within the Monetary Efficiency Illustration

2019

• Common Annual Gross Gross sales:  $1,163,274
• Variety of Eating places Assembly or Exceeding the Common:  108
• % of Eating places Assembly or Exceeding the Common:  45%
• Excessive Annual Gross Gross sales:  $2,753,016
• Median Annual Gross Gross sales:  $1,133,549
• Low Annual Gross Gross sales:  $383,060
• Variety of Eating places That Certified for Inclusion:  239
• Variety of Eating places That Had been Excluded As a result of They Had been Not Open or Did Not Report Gross sales for All 12 Months of the 12 months:  31

2020

• Common Annual Gross Gross sales:  $1,268,919
• Variety of Eating places Assembly or Exceeding the Common:  113
• % of Eating places Assembly or Exceeding the Common:  43%
• Excessive Annual Gross Gross sales:  $2,682,054
• Median Annual Gross Gross sales:  $1,236,684
• Low Annual Gross Gross sales:  $512,290
• Variety of Eating places That Certified for Inclusion:  265
• Variety of Eating places That Had been Excluded As a result of They Had been Not Open or Did Not Report Gross sales for All 12 Months of the 12 months:  29

2021

• Common Annual Gross Gross sales:  $1,401,471
• Variety of Eating places Assembly or Exceeding the Common:  124
• % of Eating places Assembly or Exceeding the Common:  42%
• Excessive Annual Gross Gross sales:  $3,002,244
• Median Annual Gross Gross sales:  $1,362,544
• Low Annual Gross Gross sales:  $518,468
• Variety of Eating places That Certified for Inclusion:  293
• Variety of Eating places That Had been Excluded As a result of They Had been Not Open or Did Not Report Gross sales for All 12 Months of the 12 months:  31

2022

• Common Annual Gross Gross sales:  $1,372,115
• Variety of Eating places Assembly or Exceeding the Common:  140
• % of Eating places Assembly or Exceeding the Common:  44%
• Excessive Annual Gross Gross sales:  $3,135,208
• Median Annual Gross Gross sales:  $1,325,089
• Low Annual Gross Gross sales:  $484,663
• Variety of Eating places That Certified for Inclusion:  317
• Variety of Eating places That Had been Excluded As a result of They Had been Not Open or Did Not Report Gross sales for All 12 Months of the 12 months:  7

Schedule B – Info on Sure Classes of Bills and Manageable Revenue for a Subset of the Places Listed in Schedule A

2019

• Retailer Depend:  177
• Common Gross Gross sales:  $1,196,269
• Common Price of Items:  31.12%
• Common Labor:  29.99%
• Common Restaurant Controllables:  10.58%
• Common Manageable Revenue:  28.31%

2020

• Retailer Depend:  177
• Common Gross Gross sales:  $1,273,969
• Common Price of Items:  29.84%
• Common Labor:  28.26%
• Common Restaurant Controllables:  10.60%
• Common Manageable Revenue:  31.31%

2021

• Retailer Depend:  164
• Common Gross Gross sales:  $1,476,845
• Common Price of Items:  29.90%
• Common Labor:  28.87%
• Common Restaurant Controllables:  10.02%
• Common Manageable Revenue:  31.20%

2022

• Retailer Depend:  106
• Common Gross Gross sales:  $1,498,227
• Common Price of Items:  31.98%
• Common Labor:  29.41%
• Common Restaurant Controllables:  10.47%
• Common Manageable Revenue:  28.14%

• Schedule B relies upon P&L data for eating places that submitted usable P&Ls for a number of of the years 2019 by means of 2022.

• There have been eating places included in Schedule A that had been excluded from Schedule B for a number of of the next causes: (a) ADQ didn’t obtain any P&Ls with 12 full months of information in the course of the relevant time interval, (b) the P&Ls confirmed a variance of three% or extra from the gross sales experiences submitted to ADQ, or (c) the P&Ls submitted to ADQ had an apparent error within the information.

• The variety of eating places included in Schedule A however excluded from Schedule B was as follows: 93 eating places in 2019; 117 eating places in 2020; 160 eating places in 2020; and 218 eating places in 2022.

• Gross Gross sales. Product sales, as utilized in Merchandise 19 and within the Working Settlement, means the full revenues and receipts from the sale of all merchandise bought by the Restaurant, whether or not paid for by money, credit score (not adjusted for bank card charges) or present card, barter, or in any other case, together with gross sales of all merchandise beneath any of the Logos in addition to gross sales of different merchandise, companies, and merchandise, whether or not or not recognized by different model names, and excluding gross sales taxes and revenues and receipts arising straight from Licensee’s sale of present playing cards.

• Price of Items. The price of the meals merchandise which might be bought to customers and the related paper purchases (based mostly on starting stock, plus purchases, much less ending stock). The meals merchandise embody components, drinks, and condiments. The related paper purchases embody baggage, product wraps and containers, different paper merchandise, cups and lids, straws, and consuming utensils.

• Labor. The sum of crew labor wages, supervisor’s wage and different compensation, and associated taxes and advantages. Labor doesn’t embody funds which may be made to a franchisee or its homeowners within the type of a supervisor’s wage or wages. Labor doesn’t embody funds which may be made to a franchisee or its homeowners within the type of an proprietor’s draw, a dividend, or comparable distributions.

• Restaurant Controllables. The sum of utilities, phone, native promoting, repairs and upkeep, service contractors, laundry and uniforms, working provides (apart from stock), trash and recycling, supply service supplier charges and commissions, and financial institution costs (apart from debt service).

• Miscellaneous Bills. All miscellaneous bills are rolled up into the full Restaurant Controllables proportion.

• Manageable Revenue. Revenue remaining after deduction of gross sales taxes, reductions, Price of Items, Labor Price, and Restaurant Controllables, however earlier than the deduction of occupancy prices, insurance coverage (non-employment), persevering with license charges, gross sales promotion program charges, authorized charges, accounting charges, and different administrative prices.

Part VI – DQ Grill & Chill Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️