Below you will find the pre-screening form for prospective Dairy Queen franchisees. Please read the financial requirements carefully before filling out the form, and be sure to include all appopriate information before transmitting the form. This will enable us to process your evaluation more quickly and avoid complications. Please make sure to fill out your current state of residence properly — this is the state in which you currently reside, not the state where you wish to open a DQ. Once you have read the financial requirements thoroughly, you will find the pre-screening form at the bottom of this page.

PROSPECTIVE FRANCHISEE’S REQUIREMENTS FOR A NEW FACILITY DEVELOPMENT

A new franchisee must have a net worth of at least $750,000. Liquid assets of at least $400,000. Of that, a minimum of $300,000 must be available to inject as cash equity. Keep in mind, variances specific to an individual project could increase or decrease this range. Net worth and liquid assets must be substantiated in a financial statement with verification of each asset by a financial institution. The financial statement must reflect net worth over a period of time as opposed to a point in time, and be verified over that period of time by a financial institution DQ MT/ND prefers prospective franchisees with restaurant experience, more specifically, Quick Service Restaurant (QSR) experience. Business experience with a franchise system is preferable as well, as is related Business and Hospitality Degrees and experience.

EXCEPTIONS AND SPECIAL CIRCUMSTANCES:

DQ MT / ND may consider approval of a Prospective Franchisee who does not meet the minimum financial requirements under the following circumstances: The Prospective Franchisee is an existing DQ franchisee or is a family member of an existing DQ franchisee, provided that the existing franchisee is in good standing with DQ MT/ND and/or ADQ. The Prospective Franchisee has been in partnership with an existing DQ franchisee, or an individual who has been a DQ store manager for at least two years, but does not meet the minimum financial requirements, provided that the existing franchisee is in good standing with DQ MT/ND and/or ADQ. A Prospective Franchisee with other unique or exceptional experience in a related field or unique or exceptional opportunities for developing a new facility.

PROSPECTIVE FRANCHISEE’S TRANSFER REQUIREMENTS (POTENTIAL BUYER’S REQUIREMENTS)

Net worth (exclusive of residence and personal items) totaling the greater of: 50% of the total purchase price of the transaction or $75,000. Liquid assets totaling the greater of: 20% of the total purchase price of the transaction or $30,000. Operating Capital (separate from liquid assets) totaling the greater of: $25,000 or 33% of fixed and semi-variable expenses, including debt service, and manager salary not to exceed $100,000 (for most purposes, the same as “working capital”). Net worth and liquid assets must be substantiated in a financial statement with verification of each asset by a financial institution. The financial statement must reflect net worth over a period of time as opposed to a point in time, and be verified over that period of time by a financial institution DQ MT/ND prefers prospective franchisees with restaurant experience, more specifically, Quick Service Restaurant (QSR) experience. Business experience with a franchise system is preferable as well, as is related Business and Hospitality Degrees and experience.

EXCEPTIONS AND SPECIAL CIRCUMSTANCES:

DQ MT/ND may consider approval of a buyer who is a family member or who has been a store manager for at least two years but does not meet the minimum financial requirements, provided that seller is in good standing with DQ MT/ND and will guarantee the financial obligations of the buyer. A prospective franchisee with unique or exceptional experience, or opportunities, may qualify even though they do not mean these financial or experiential requirements and preferences.

Pre-Screening for Prospective Franchisees