Does ADQ have the power to change or dissolve the FAC or its committees for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise advisory council ("FAC") advises ADQ on marketing, advertising and other matters, but solely in an advisory capacity. As of the date of this disclosure document, the FAC is comprised of members that are chosen or elected in the following manner: (1) DMA chairpersons (elected by franchisees) from each of ten U.S. regions elect one DMA chairperson to serve as the region's representative on the FAC; (2) the Canadian Franchise Advisory Council ("CFAC"), elected by Canadian franchisees, selects two representatives from the CFAC to represent the east and west regions of Canada; and (3) the Dairy Queen Territory Operator Organization ("DQTOO") or the DQTOO board, elected by territory operators, chooses two territory operator representatives. ADQ
reserves the right to appoint two "at large" franchisee members to the FAC. Further, ADQ reserves the right to form committees that will work with the FAC at any time on any matter. ADQ has the power to form, change, or dissolve the FAC or any of its committees, and has the right to change how franchisee membership on the FAC or any committee is determined.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, ADQ has the authority to modify or terminate the Franchise Advisory Council (FAC) and its committees. The FAC advises ADQ on marketing, advertising, and other issues in an advisory role.
ADQ can form committees to collaborate with the FAC on any matter. Furthermore, ADQ reserves the right to modify how franchisee membership on the FAC or any committee is determined.
This means that while franchisees have some input through elected representatives, ADQ ultimately controls the structure and composition of the FAC and its committees. This is a typical arrangement in franchising, where the franchisor retains control over advisory councils to ensure consistency and alignment with the brand's overall strategy.