What agreement is being transferred when a Dq Treat licensee desires to transfer the Operating Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Company and Licensee entered into a DQ® Operating Agreement dated
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 Franchise Disclosure Document, when a licensee desires to transfer their Operating Agreement, the Operating Agreement itself is the agreement being transferred. The licensee must adhere to the terms outlined in the Operating Agreement regarding the transfer process.
As part of the transfer, the licensee is required to release Dq Treat and its affiliates from any claims related to the agreement, the Dq Treat location, or the business relationship between the parties. This release is a condition of the transfer and involves the licensee relinquishing any rights to pursue legal action against Dq Treat, with some exceptions such as liabilities under the Maryland Franchise Registration and Disclosure Law.
In order to complete the transfer of the Operating Agreement, the licensee, owners, and guarantors must sign a general release of all claims arising out of or relating to the agreement, the licensee's restaurant, or the parties' business relationship, in the form designated by Dq Treat, releasing Dq Treat and its affiliates. The transferee must also sign Dq Treat's then-current operating agreement, which may have materially different terms and conditions, including higher or additional fees.