DAIRY QUEEN Sues Franchisee for $13M Extortion Scheme

Dairy Queen claims it’s the victim of a $13 million extortion scheme perpetrated by one of its own franchisees.

International Dairy Queen Inc. is soft-serving up a lawsuit against multi-unit franchise owner Guy Blume of Ankeny, Iowa. 

IDQ, Inc. claims Blume is threatening to go public with information he says would cause $100 million in damage to the company. 

Dairy Queen wants a federal judge to sever its ties with Blume, who operates four Iowa stores, and to issue a court order to keep the franchisee from defaming the company.

Blume hasn’t filed a response to the suit yet, but his attorney denied the allegations.

Source:  Minneapolis St. Paul Business Journal