Miami Standard (Houston, TX) – Twelve Dairy Queen restaurants have officially closed, with six of them located in East Texas. A representative from Dairy Queen confirmed that these closures are connected to the 25 franchise shutdowns that occurred in February.

The affected locations in East Texas include restaurants in Hemphill, Jasper, Kountze, Huntington, Longview Eastman, and Lufkin. While all of these locations were owned by the same franchisee, Dairy Queen emphasized that these closures are isolated incidents.

“The closures are an isolated event, and we refrain from publicly sharing contract terms,” a Dairy Queen representative stated.

The recent shutdowns are part of an ongoing dispute between American Dairy Queen Corporation and Project Lone Star, which previously owned 38 Dairy Queen franchises in Texas. According to court documents obtained by KETK, Dairy Queen Corporation had warned Project Lone Star that their franchise rights would be revoked if they failed to remodel their restaurant locations.

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On January 30, Dairy Queen notified Project Lone Star that 25 of their franchises were terminated and instructed a key supplier to halt shipments to the remaining locations. Project Lone Star argued that without further supplies, their remaining restaurants would be forced to close within days.

The latest wave of closures signals continued trouble for the franchise owner, though Dairy Queen has not disclosed whether more locations will be affected in the future.

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