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Dairy Queen

A franchisee is a powerful and effective process that includes the marketing, sale and distribution of products as well as services. The franchisor licenses the trademarks and techniques of doing business and performs the distribution of products or services through his associated dealers.

Ice cream manufacturer McCullough was experimenting with a recipe for a new frozen dairy product, stemming from his belief that ice cream tasted better when it was soft and served fresh from the freezer, not frozen solid. With his recipe perfected, McCullough and his son Alex approached one of their customers about holding an introductory sale of the new soft ice cream. At the first sale, more than 1,600 people lined up to try the new ice cream. Based on that initial success, the McCulloughs opened the first Dairy Queen location in 1940 in Joliet, Illinois. The first stores sold only soft-serve ice cream, taking home pints and quarts and cones, but over the years, a variety of ice cream treats were added to the menu, such as banana splits and Dilly Bars. It started franchising in 1944.

In the 1950s, some Dairy Queens began serving hot food items. Today, stores system wide has menus that include hot dogs, hamburgers and chicken strips through Dairy Queen’s Brazier concept. Franchisees can operate a Dairy Queen with or without a Brazier. The Company also offers its Treat Center concept, a store that sells items from the three franchise companies it owns.

The Franchisor is a privately-held company with 320 employees and 33 employees in the franchise department. They provide good service include quick-service restaurant serving ice cream, hot dogs, hamburgers and chicken service. Their costs and fees include total investment of 655000 to 13 million dollars. Their franchise fee is 20000 to 35000 dollars and their ongoing royalty fee is 4 to 5 percent. Their term of agreement varies but is renewable. They have achieved good position because of their excellent service. They have ranked first in the category in 2005. In the America's top global franchises, they have ranked 25th in 2006, 28th in 2005 and 22nd in 2004.

The Dairy Queen Company has recognized that every potential restaurant franchisee has unique investment needs. To that end, they have created several methods through which the client can become part of their experienced family of franchisees, whether the client is interested in single or multi-unit development.

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