What is the alternative to a 2% price increase for Dq Treat equipment and services?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| effective tax rate for the years ended December 31 were as follows: | | | | | |---|---|---|---|---| | 2024 | 2023 | 2022 | | | | U.S. federal statutory rate | 21.00 | % 21.00 | % 21.00 | % | | State income tax—net of federal effect | 2.77 | 2.90 | 2.86 | | | Foreign income tax | 0.58 | 0.82 | 0.88 | | | Other—net | ( 0.14) | ( 0.52) | ( 0.54) | | | Consolidated effective tax rate | 24.21 | % 24.20 | % 24.20 | % | Grand Total (Does not include Tax and Shipping) $$
Down Payment Balance Due
Special Instructions:
This Sales Order is made and entered into by and between ParTech, Inc., ("PAR") and the Participating Location executing this Sales Order. Participating Location hereby agrees to purchase from PAR, and PAR by its acceptance of this Sales Order agrees to sell to Participating Location
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, instead of a 2% price increase, the pricing for equipment and services is subject to an annual increase based on the Consumer Price Index (CPI). This increase is calculated based on the immediately preceding unadjusted 12 months (October 1 through September 30) and derived from the U.S. Department of Labor, Bureau of Labor Statistics website. The price increase will be the lesser of 2% or the CPI increase.
This means that the annual price increase for Dq Treat franchisees' equipment and services will not automatically be 2%. Instead, it will be determined by comparing 2% with the CPI increase. If the CPI increase is less than 2%, the price increase will be based on the CPI. If the CPI increase is greater than 2%, the price increase will be capped at 2%.
Dq Treat will communicate these price increases to franchisees in writing via email by January 15th, and the price increases will take effect on February 1 of the current calendar year. This allows franchisees to plan their budgets accordingly. Franchisees should monitor their email for these notifications and review the CPI data from the U.S. Department of Labor to understand the basis for the price adjustments.
This policy protects Dq Treat franchisees from potentially high price increases tied directly to inflation, as the increase is capped at 2% even if the CPI rises higher. However, franchisees should still be prepared for annual price adjustments to their equipment and services costs, which will impact their overall operating expenses.