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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Dairy Queen franchise

Not every Dairy Queen location is the same kind of business — some operate as treat-focused, often seasonal soft-serve shops, while others run the full food-service "Grill & Chill" format — and which one you're buying changes what the diligence, staffing, and even closing-date timing should look like. We act as independent counsel for buyers and sellers of individual Dairy Queen locations in Ontario; this page is not affiliated with or endorsed by Dairy Queen Canada Inc.

№ 01.1The Resale, End to End

From offer to ownership

Dairy Queen resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Offer & conditions

Conditions should reflect the format you're buying — a seasonal treat shop's financials need to be read differently than a year-round Grill & Chill restaurant's.

1–2 weeks
02

Franchise application to Dairy Queen

Review of the buyer's background and financial capacity, calibrated to the format and scale of the specific location.

3–6 weeks
03

Site & format review

Confirming the location meets current standards for its specific format, whether that's a treat shop or a full Grill & Chill restaurant.

2–4 weeks, in parallel

Getting to closing

04

Disclosure considerations

A franchisor-facilitated resale can look exempt from Arthur Wishart Act disclosure requirements — Ontario courts have read that resale exemption narrowly, so we assess whether disclosure may still be required.

assessed early, runs in parallel
05

Lease / premises assignment

Landlord consent to assign the lease — seasonal or shorter-term leases at treat-only locations sometimes carry their own quirks worth reviewing closely.

2–5 weeks
06

Training & transfer approval, then closing

Training scoped to the format being transferred runs alongside final transfer approval before closing.

3–6 weeks, then closing
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Dairy Queen system

CFA Look For A Franchise listing confirms Dairy Queen Canada Inc. as a CFA member since 2000 with hundreds of Canadian franchise units

Part of Dairy Queen's large Canadian network with widespread Ontario coverage

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Dairy Queen resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
Franchise agreementNew agreement issued to the incoming operator, on Dairy Queen's then-current terms.Existing agreement can stay in place, with Dairy Queen still reviewing and consenting to the ownership change.
Lease / premisesLandlord consent to assign; seasonal or shorter-term leases at treat-only locations need their own review.Lease usually continues unless it carries its own change-of-control clause.
EquipmentSoft-serve machines and, at Grill & Chill locations, kitchen equipment transfer as itemized assets, confirmed against any leases or liens.Equipment stays with the corporation; existing service and lease arrangements carry over.
Staff (ESA)Employment Standards Act continuity rules typically govern how crew carry over — a real consideration where staffing is seasonal.Employment generally continues without interruption — the employer doesn't change.
Tax angleBuyer gets a stepped-up cost base on the assets purchased; an HST election may apply.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical useThe default for both treat-shop and Grill & Chill transfers.Less common — sometimes used by multi-location operator groups selling the holding company.
Franchise agreement
Asset sale

New agreement issued to the incoming operator, on Dairy Queen's then-current terms.

Lease / premises
Asset sale

Landlord consent to assign; seasonal or shorter-term leases at treat-only locations need their own review.

Equipment
Asset sale

Soft-serve machines and, at Grill & Chill locations, kitchen equipment transfer as itemized assets, confirmed against any leases or liens.

Staff (ESA)
Asset sale

Employment Standards Act continuity rules typically govern how crew carry over — a real consideration where staffing is seasonal.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased; an HST election may apply.

Typical use
Asset sale

The default for both treat-shop and Grill & Chill transfers.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Dairy Queen treat shop or Grill & Chill restaurant changing hands between an outgoing and incoming operator, on a standard lease.

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A bit more involved

A larger or more complex deal

A multi-location Dairy Queen operator selling several restaurants together, or a transfer that includes a proposed format conversion.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.6Before You Ask

Common questions

What's the difference between buying a "treat shop" and a "Grill & Chill" Dairy Queen?

A treat-focused location centres on soft-serve, blizzards and similar treat items and often operates seasonally, while a Grill & Chill restaurant runs a full food-service menu typically year-round — the two have different staffing, equipment, and cash-flow patterns worth understanding before you make an offer. We tailor your diligence checklist to which format you're actually buying.

If the location is seasonal, how do I evaluate its financials properly?

Seasonal financials need to be read across a full operating cycle rather than compared month-to-month against a year-round restaurant, and off-season closures affect things like staff continuity and lease terms differently too. We factor seasonality into how we help you review the numbers and structure your conditions.

Does the franchise transfer process differ between the two formats?

The core steps — franchisor consent, disclosure considerations, lease assignment, training — apply to both, but the specific review of equipment, staffing needs, and site standards is calibrated to whichever format you're buying. We don't treat a treat-shop transfer and a full-restaurant transfer as identical just because they're the same brand.

What happens to the soft-serve machines and other specialty equipment?

Specialty equipment like soft-serve machines is typically itemized in an asset sale, subject to confirming what's owned outright versus leased or financed — a real consideration for treat-focused locations where that equipment is central to the business. We run the searches to confirm what's actually included before price is finalized.

Can I convert a treat-shop location into a full Grill & Chill format after buying it?

That would be a franchisor-approved conversion decision, not something built into an ordinary resale — if that's part of your plan, we'd want to understand Dairy Queen's own requirements for a format change before you commit to the purchase. Treat a format conversion as a separate project from the resale itself.

Related

Where we close franchise resale deals

Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Dairy Queen or its franchisor.

Ready to begin?

Tell us about your Dairy Queen resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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