Does ADQ assume responsibility for construction cost overruns for a Dq Treat franchise?

According to Dq Treat's 2025 Franchise Disclosure Document, ADQ (American Dairy Queen Corporation) does not assume responsibility for construction cost overruns. The document explicitly states that ADQ is not responsible for cost overruns, delays in construction, or any expenses related to the construction or installation of equipment in the restaurant. This means that as a Dq Treat franchisee, you are solely responsible for managing and covering all construction-related costs, including any unexpected overruns.

This allocation of responsibility has significant implications for prospective franchisees. It highlights the importance of careful planning, budgeting, and contractor selection. Franchisees should conduct thorough due diligence, obtain detailed and comprehensive bids, and ensure they have sufficient capital to cover potential cost increases. Additionally, the FDD emphasizes that changes made after signing the construction contract may result in additional costs to the franchisee, and no changes should be made without notifying the construction consultant and obtaining written approval from ADQ.

Furthermore, the FDD notes that bids can be influenced by local regulations, developer criteria, and site conditions, which may lead to additional costs via approved change orders. Dq Treat franchisees are also responsible for costs associated with opening delays, such as late fees and rental commencement charges. Therefore, franchisees should factor in potential delays and associated expenses when projecting their initial investment and operating costs.

In summary, while ADQ provides construction consultation services, the financial responsibility for the construction project, including any cost overruns, rests entirely with the Dq Treat franchisee. This underscores the need for franchisees to be proactive in managing the construction process and mitigating potential risks.