With the exception of McDonald’s, Dairy Queen franchisees have quietly amassed the most substantial wealth out of any food franchise that operates at more than 1,000 locations in the United States.
It has been intriguing to study how much Warren Buffett chose to emulate Ray Kroc’s early years at McDonald’s in drafting the incentive systems that exist at Dairy Queen. Instead of opting to build wealth at the expense of franchisees, Buffett chose to build wealth by giving his franchisees a chance to reap significant gains for themselves. In other words, instead of trying to extract as much as he could from a fixed pie, Buffett chose to create a incentives that encourages Dairy Queen franchisees to expand the size of the pie as much as possible.
Since I know my readership is numerically inclined, let’s look at the numbers:
Entering 2018, the average franchise with 1,000 locations required liquid … Read the rest of this article!
The post Why Dairy Queen Franchises Lead To Riches first appeared on The Conservative Income Investor.