What is the amount of the initial franchise fee that a Dq Treat licensee must pay to the company?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
t team will have equity interest in the proposed business?
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- Who will attend the Company training program? Please refer to the appropriate franchise disclosure document (FDD) for the training requirements for each concept.
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- What other businesses do you currently own? For each business, please indicate in detail the makeup of the management team for that business. Note: If you currently own a DQ or Orange Julius franchise, which of your management team has already successfully completed the applicable Company training program? When did they attend tra
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, the initial franchise fee varies depending on the type of restaurant. For a DQ Grill & Chill or DQ Texas Restaurant, the initial franchise fee is $45,000. However, for a DQ Treat Store and all other concepts, the initial franchise fee is $25,000.
The initial fee is to be paid via wire transfer in two installments. A non-refundable deposit of $10,000 is due when the franchise application is submitted. The remaining balance of the initial franchise fee is due within 10 days after American Dairy Queen (ADQ) approves the application and issues a written consent letter.
However, the FDD also states that for certain agreements, the initial franchise fee may be waived entirely. Specifically, Section 9.1 of the agreement may be deleted, meaning the licensee is not required to pay an initial franchise fee to the company. This suggests that the initial fee can be negotiable or dependent on specific circumstances outlined in the franchise agreement addendum.
Prospective franchisees should carefully review their specific franchise agreement and any addenda to determine the exact initial franchise fee applicable to their situation. It is important to clarify with Dq Treat whether the standard fee applies or if any waivers or modifications are in effect based on the specific terms of the agreement.