Dairy Queen franchisee associations are suing the company in a fight about required remodeling. Dairy Queen has demanded that certain franchises update their stores to the tune of $275-450,000. This includes increasing the size of the buildings. Locations in Arizona, Illinois, Kentucky, Maryland, Missouri, Ohio, Pennsylvania, Virginia, and West Virginia are involved in the lawsuit.

The franchise owners argue that the new model is risky and expensive. It involves a new concept for the company called Grill & Chill, which includes limited table service. This will require more staff and cost more to operate on a daily basis. They also say that just over a hundred of these new stores have opened so far and two have already had to close.

Chuck Mooty, Dairy Queen’s Chief Executive, claims that the likelihood of required remodeling is in the franchisees’ contracts and they shouldn’t be surprised about it. The company says that the franchisees’ arguments are false, such as the suggestion that Chill & Grill locations aren’t financially viable. He also said that remodeling franchises will help the company stay “relevant”.

According to Mooty, franchise-owner associations have created this fight. They are being undercut by corporate Dairy Queen to supply the restaurants, and they’re in financial trouble. Local Dairy Queen franchises have gotten caught up in this mess.