Does ADQ guarantee that financing will be offered to Dq Treat franchisees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Although they may have done so in the past, ADQ and its affiliates generally do not offer financing arrangements or similar assistance to franchisees, except as explained below. Neither ADQ nor its affiliates finance any part of the initial franchise fee.
Neither ADQ nor its affiliates will offer site acquisition, equipment or leasehold financing services to you for the establishment of your franchised business. You must obtain necessary financing through third parties. ADQ periodically arranges with third party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be offered in any particular instance. If financing is offered, the financial institution independently establishes the amount, terms, interest rate and duration. Neither ADQ nor any of its affiliates receive any payments in exchange for such referrals or the
placement of any financing. It is solely your responsibility to locate and obtain, on whatever terms you can arrange, any required financing for the establishment of your franchised business.
Source: Item 10 — Financing (FDD pages 36–37)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, ADQ generally does not offer direct financing to franchisees. While ADQ may arrange for introductions to third-party financing sources, they do not guarantee that financing will be offered in any specific case.
ADQ does not provide financial assistance for the initial franchise fee, site acquisition, equipment, or leasehold improvements. Franchisees are responsible for securing their own financing through third-party lenders. The terms of any financing obtained, including the amount, interest rate, and duration, are determined independently by the financial institution.
ADQ does not receive any compensation for referring franchisees to financing sources. This arrangement is typical in the franchise industry, where franchisors often connect franchisees with potential lenders but do not directly provide financing or guarantee its availability.
Prospective Dq Treat franchisees should be prepared to explore various financing options and understand that obtaining financing is their sole responsibility. They should also inquire with ADQ about any relationships with preferred lenders and the typical financing terms obtained by other franchisees.