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Failure: The Blog  

August 2018

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July 2018

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June 2018

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May 2018

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April 2018

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March 2018

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[More archives...]

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How One Dairy Queen Wins By Breaking All the Rules

September 29th, 2015 - by Robby Slaughter

If there’s one rule of operating a franchise, it’s this: you follow all the policies of the company as a franchisee. No exceptions, no questions. Because if you don’t, you could lose everything. So why is one DQ brazenly breaking the mold?

Dairy Queen

The story comes from Moorehead, Minnesota. As explained in an piece from Serious Eats:

“Corporate would love for us to disappear, no question about that,” says Moorhead Dairy Queen owner Troy DeLeon. With its seasonal hours and walk-up service windows—plus a penchant for producing menu items you won’t see elsewhere—the shop has more in common with the first Dairy Queen, which opened in 1940 in Joliet, Illinois, than the sleek stone-walled Grill and Chills you’re likely to see today.

How is it possible that this one location is doing everything different? It’s all in the legalese—and the success.

When the DeLeons took over, the original 1949 contract transferred, meaning the Moorhead DQ doesn’t have to adhere to many strict company rules. Had they signed a newer contract, they would have had no choice but to discontinue their barbecue sandwiches and Polish dogs and launch a full Orange Julius menu like many newer DQ franchises. Thanks to their old-school contract, the Moorhead DQ still pays the original 1949 royalties rate on Dairy Queen treats that they order from the corporate warehouse. Perhaps most importantly, DeLeon is able to source ingredients from outside providers and still make many desserts in-house.

Failure is the secret to success. Sometimes you gotta go against what the rules say and do your own thing. And while it won’t always work out, sometimes mistakes can be sweet!

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