What activities are included in the construction consultation services provided to Dq Treat franchisees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ay in the future require of similarly situated Licensees, (b) the amount the lessor of the Restaurant premises may require or (c) the amount required under Licensee's operating agreement for the location. The insurance coverage must start no later than the date Licensee begins construction. Licensee must deliver to ADQ a certificate of insurance and additional insured and other endorsements showing compliance with this section. The insurance coverage must:
- A. Insure Licensee, ADQ, ADQ's affiliates and any other person or entity designated by ADQ by name from liability for any and all such damage and injury;
- B. Be written with a company rated no less than "A" by AM Best Insurance Rating;
- C. Name ADQ and its affiliates as an additional insured; and
- D. Provide that ADQ will be given 30 days' prior written notice of material change in or termination or cancellation of the policy.
ADQ does not represent or warrant that any insurance that Licensee is required to purchase will provide adequate coverage for Licensee. The requirements of insurance specified in this Agreement are for ADQ's protection. Licensee should consult with its own insurance agents, brokers, attorneys and other insurance advisors to determine the level of insurance protection it needs and desires, in addition to the coverage and limits required by ADQ.
| Licensee: | Dated: |
|---|---|
| Construction Consultation Services Agreement (Including Exhibit "A") Total of Four Pages | |
| Company: AMERICAN DAIRY QUEEN CORPORATION | |
| By: | Dated: |
EXHIBIT A
CONSTRUCTION CONSULTATION SERVICES AGREEMENT
THE SERVICES PROVIDED ARE AS FOLLOWS:
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- Consult with the Licensee in the plan review process and with state and local regulatory agencies relevant to compliance with building, health and fire codes. It is the Licensee's sole responsibility to ensure that the plans conform to all state and local codes. (Construction plans and specifications provided by ADQ are design intent drawings based on Minnesota state codes.) (Site-specific changes will need to be made to the plans by the local architect hired by the Licensee).
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- Review availability of utilities (i.e. gas, electricity, sewer and water) to the site/space with the Licensee. Freestanding locations may require, at ADQ's discretion, an on-site visit relative to building location, ingress, egress, sign locations, parking and landscape requirements.
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- Review construction bids with the Licensee and consult with the Licensee in selecting a general contractor for the project, considering price, reputation, and ability to perform. The actual selection of the qualified contractor is the Licensee's sole responsibility.
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- Assist the Licensee and bidding general contractors in reviewing plans and information gathered in the above-mentioned functions to facilitate the submission of more accurate and competitive bids to the Licensee. ADQ recommends that all contract documents be completed on AIA forms.
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- Consult with the Licensee to obtain the required permits from the state and local authorities. It is the Licensee's and/or contractors sole responsibility to obtain permits. It is also the responsibility of the Licensee or contractor to submit the application with proper fee and time allowance to obtain necessary permits on a timely basis. Failure to do so may delay construction.
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- A. Scope of Services for freestanding locations:
- Review conditions and work progress with the Licensee and contractor to avoid non-compliance with plans, delays or additional costs. Means of review will be by actual on-site inspections conducted by ADQ personnel or a third party retained by ADQ that consist of a pre-construction inspection or an underground inspection at ADQ's discretion based on the project's needs, rough-in inspection and punch list inspection.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the construction consultation services include several activities to assist franchisees in the construction or remodeling of their locations. These services encompass consulting with the franchisee during the plan review process, including interactions with state and local regulatory agencies to ensure compliance with building, health, and fire codes. However, it's the franchisee's responsibility to ensure the plans adhere to all state and local codes, and any site-specific changes to the provided plans must be made by a local architect hired by the franchisee. Dq Treat will also review the availability of utilities such as gas, electricity, sewer, and water to the site. For freestanding locations, Dq Treat may conduct an on-site visit to assess building location, access, signage, parking, and landscaping needs.
Additionally, Dq Treat will review construction bids with the franchisee and offer consultation in selecting a general contractor, considering factors like price, reputation, and ability to perform. The final selection of the contractor remains the franchisee's responsibility. Dq Treat will also assist in reviewing plans and information to help contractors submit accurate bids and recommends using AIA contract documents. Furthermore, Dq Treat consults with franchisees on obtaining necessary permits from state and local authorities, though obtaining these permits remains the franchisee's and/or contractor's responsibility.
For freestanding locations, the scope of services includes reviewing conditions and work progress to ensure compliance with plans and to avoid delays or additional costs. This review involves on-site inspections by Dq Treat personnel or a third party, including pre-construction, underground (at Dq Treat's discretion), rough-in, and punch list inspections. The review process also includes digital photos, phone conversations, and email communication with the general contractor, job superintendent, franchisee, and field personnel. For tenant improvements in multi-tenant structures, the FDD does not specify the scope of services provided. Dq Treat also provides a project final punch list of shortcomings and deficiencies in relation to approved construction plans, addenda, change orders, construction contract and workmanship. Consultant will review all punch list items with the Licensee, Operations field force and general contractor prior to leaving the job site. It is the Licensee's responsibility to ensure that the general contractor completes all punch list items prior to final payment.
Finally, Dq Treat consults with the franchisee to obtain final approvals from necessary agencies for building occupancy and regarding construction warranty work the contractor may be required to provide. For equipment warranty, the franchisee must work with its equipment vendor. Dq Treat also consults with the franchisee, upon request, to verify that proper documentation is received from the general contractor, such as lien releases and inspection reports, before project closeout. However, Dq Treat is not responsible for the actual construction, equipment installation, delays, errors, cost overruns, or ensuring compliance with building standards and legal requirements.