DAIRY QUEEN Franchise Closes After Franchisor Rejects Sale

Unhappy Franchisee – A Dairy Queen franchise that has operated for 25 years will close after Dairy Queen Corporation refused to approve a transfer to a new owner and subsequent relocation.

The Dairy Queen franchise is the only ice cream shop in Boulder, Colorado’s Gunbarrel community, according to a story in the daily camera.

The franchise owners, Carl & Mandy Patron, will lock the doors for good this Friday after struggling for years to make money.

The Patron’s bought the Dairy Queen franchise in 2001, and have struggled in recent years.  They reported that during the winter months they survive off a line of credit, which they spend the summer months paying back. 

According to franchisee Carl Patron, “There is very little overall profit with the store.”

Franchisees hopes rise with new prospective owner

After years of struggling to make a profit and unsuccessful attempts to sell their store, the Patron’s finally got a break.  A prospective buyer emerged with a plan to move the Dairy Queen to a nearby location and turn it into a co-branded store with Orange Julius.  The new franchisee was the most qualified the Patron’s has encountered.

Three weeks ago, the franchise owners secured a contract on the sale of the business and were near closing when officials Dairy Queen Corporation refused to approve the transfer of the store.  According to franchisee Patron, the denial was in part, was due to the new buyer’s plans to relocate the business even though it was only a short distance and would still be within the same shopping center.

With their plans to sell to the new owner crushed, the Patron’s have decided to take the loss, close the 25 year franchise and move on.

From Wednesday to Friday, the store is offering everything at 50% off until it’s gone.


Related reading:

DAIRY QUEEN Sues Franchisee for $13M Extortion Scheme

2 thoughts on “DAIRY QUEEN Franchise Closes After Franchisor Rejects Sale

  • July 14, 2016 at 4:28 pm

    I gave up on dairy queen after 26 year, because it is not a business founded to promote mutual benefit, but to scam the franchisee best they can, neither they have any principals to help improve business, nor any legal grounds to blackmail franchisees, Want to know more, please contact me on [ ], from 11 AM to 5 PM

  • July 19, 2016 at 9:08 pm

    I would suggest anyone wanting to own a Dairy Queen to also be a good fit for the brand. DQ is like any other business serving the customer, if you like what you’re doing, and you hire employees who also love their job, this will shine through to the customers experience at your store.

    Happy customers are repeat customers. I disagree with Mohammad A. Dar, we bought two struggling DQ stores and turned both around in two years, both have increasing sales each year. If we get the opportunity we would buy another store with no reservation.

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