With which affiliate does Dq Treat participate in a centralized cash management program?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.6 Electronic Funds Transfer. Licensee must sign an electronic transfer of funds authorization, or other documents that Company designates periodically, to authorize and direct Licensee's bank or financial institution to transfer either electronically or through some other method of payment Company designates, directly to the account of Company or its affiliates and to charge to the account of Licensee all amounts due to Company or its affiliates from Licensee. Licensee's authorizations permit Company or its affiliates to designate the amount to be transferred from Licensee's account. Licensee must maintain a balance in its account sufficient to allow Company and its affiliates to collect the amounts owed to them when due. Licensee is responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this subparagraph. Company may require Licensee to pay as described in this section, regardless of whether Company imposes the same requirement on other DQ® licensees.
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 the 2025 Dq Treat FDD, franchisees must authorize their bank to transfer funds directly to the account of Dq Treat or its affiliates. This electronic transfer of funds authorization allows Dq Treat or its affiliates to designate the amount to be transferred from the franchisee's account for amounts due. The franchisee is responsible for ensuring sufficient funds are available to cover these transfers.
This requirement means that Dq Treat franchisees do not have the option to pay the company using other methods, and must agree to have their accounts debited directly. This gives Dq Treat greater control over collecting payments and reduces the risk of late or missed payments.
Franchisees are responsible for any penalties, fines, or expenses associated with these fund transfers. Dq Treat may impose this requirement regardless of whether it requires the same of other franchisees. This policy ensures that Dq Treat can efficiently manage its cash flow and collections from franchisees, while placing the onus on the franchisee to maintain adequate account balances and cover any associated fees.